Headquarters U.S. Air Force Integrity - Service - Excellence Jet A Conversion in the United States MSgt Greg Carrow Air Force Petroleum Agency Jet A Program Manager May 2012 Bottom Line Up Front Approved AFSO21 Initiative to convert from standard mil spec JP-8 jet fuel to commercial grade fuel in CONUS Demonstration with transport aircraft began in 2009 The Jet A conversion is about: Operational Flexibility Energy Security Increasing Supply Sources Procurement and Supply Chain Efficiencies Also compliments: DoD Strategic Alliance with the Airlines using Alternative Fuels and commercial Jet A Blends Efficiency Initiative — Supports Energy Strategy — Saves Money Integrity - Service - Excellence 2 Leadership Direction “Keep safety of flight at the forefront of every decision” Integrity - Service - Excellence 3 Overview What, Why, and Why Now Consumption Data What, Why & Why Now Consumption Data Expansion Roadmap Conversion Roadmap Way Forward Integrity - Service - Excellence 4 Program History Since Nov 09, shown flexibility to move from milspec to commercial fuel (Jet A w/ additives) Logistics demonstrations at Dover, Little Rock, McChord, Minn St. Paul Conducted research on fuel additives and flight profile impacts when using Jet A Demonstrated capability to inject additives at several points in supply chain (FSII, SDA, CI/LI) Savings Research Partnership Initiative expanding to a total of 24 Air Force locations by end of 2012 Keys to success Why? To Save DoD Money—Fuels Nearly Identical Integrity - Service - Excellence 5 Fuel Specifications TAN (mg KOH/g), max Mercaptan Sulfur (mass %), max Military Additives Required Fuel Prime Users Type Freezing Point, max JP-8 MIL Kerosene -47°C 0.015 0.002 Yes JP-5 MIL Kerosene -46°C 0.015 0.002 Yes (no SDA) Jet A-1 COM OCONUS Kerosene -47°C 0.10 0.003 No (but allowed) MIL NATO OCONUS Kerosene -47°C 0.015 0.003 No (but allowed) Jet A COM CONUS Kerosene -40°C 0.10 0.003 No (but allowed) TS-1 Russia Kerosene -60°C 0.01 0.005 No (but allowed) JP-4 MIL Naphtha/Kero -58°C 0.015 0.002 Yes Jet B COM Naphtha/Kero -50°C N/A 0.003 No Jet A-1 (DS 91-91) No Spec difference in Energy Content/Density between JP-8 and Jet A Integrity - Service - Excellence Logistics Data Actual Freezing Point Readings by Base JP-8 JP-5 Jet A -58.0 -57.0 -56.0 -55.0 -54.0 -53.0 -52.0 -51.0 -50.0 -49.0 -48.0 -47.0 -46.0 -45.0 -44.0 -43.0 -42.0 -41.0 -40.0 -39.0 -38.0 Freeze Point Data Coldest Daily FP Warmest Daily FP Avg Freeze FP - 48.3 C Dover Little Rock McChord Minn St. Paul 2,309Samples as of: 30 Apr 12 92% meet JP-5 Spec & 75% meet JP-8 Integrity - Service - Excellence (Nov 09 – Apr 12) 7 Why Jet A Jet A primary fuel for commercial aviation in CONUS– volume and competition drive market Jet A vs JP-8 production ratio is dependent on demand 24.4B gallons of Jet A produced in CONUS during 2007 versus only 1.6B of JP-8 Jet A represents 94% of the CONUS production versus 6% for JP-8 Jet A allows same additives found in JP-8, although they are generally not used Entering Larger Jet A Market Enables More Competition—Reduces Cost Integrity - Service - Excellence 8 Why Now? Escalating DoD fuel costs Technical evaluation supports conversion Operational, Safety, Suitability and Effectiveness (OSS&E) technical evaluation complete DLA Energy indicates it is becoming more difficult to support JP-8 CONUS requirements DoD Fuel Costs (Billions) 14 12.8 12 9.2 10 8 7.4 6 4 2 3.8 0 FY03 FY08 FY09 FY10 Suppliers opting as an overall business decision not to produce specialty fuels like JP-8 but instead produce more common Jet A 2009-2010 Inland East/Gulf Coast procurement resulted in no offers for a 54M gallon JP-8 requirement Research, Savings, Shrinking Availability of JP-8—Time is Now! Integrity - Service - Excellence 9 DoD Savings Opportunities Product Cost Savings More competition, less handling costs = reduced price Supply Chain Savings Remove/reduce specialty product supply chain More use of commercial pipelines—fungible product Reduction/consolidation of Defense Bulk Fuel Terminals Shared transportation and inventory storage costs Operational Savings Allows expanded use of commercial fuel capability (simplifies aircraft relocations, reduces logistics footprint) Since Jun 11, Jet A $.02 less than JP-8--$2.1M savings to date Integrity - Service - Excellence 10 Air Force Jet A Locations Spokane IAP Fairchild KC-135s McChord C-17s Going Forward Minn. St . Paul C130s Grant County IAP Fairchild KC-135s New Castle C130s Tulsa F16s Jun/Jul Harrisburg C130s Martin Aprt A10 & C27s Dover C5 & C17s Standiford C130s Martinsburg C-5s Key Will Rogers C21s Prior to Current Initiative During Runway Closure (Aircraft now back at Fairchild) Additional Locations Since Nov 09 Little Rock C130s Shaw F16s McEntire F-16s Charleston C-17s Savannah Fairchild Kingsley Fld Portland Cusick Aug/Sep Dyess Ellsworth Laughlin Lackland Sheppard 14 Locations to date, 10 more planned for 2012 Integrity - Service - Excellence 11 Total Jet A w/ Additives Issued by AF (2 ½ yrs) 180,000 Jet A Gals Issued AF Locations (Thousands) 169,191 160,000 140,000 Original Conversion Dates Tulsa: 1995 Standiford: 1995 Will Rogers: 2008 120,000 100,000 80,000 60,000 40,000 20,000 0 69,271 39,287 8,211 7,797 3,244 3,012 1,814 689 140 92 6,126 2,857 349 Note: Dates reflect month began issuing Jet A after start of demo Over 312M gallons issued from AF locations/relocations Integrity - Service - Excellence (Nov 09 – Apr 12) 12 Jet A Purchases Commercial Airports (2 ½ yrs) Sum of SUM(QUANTITY) 100000000 90000000 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 94,747,880 87,944,266 56,660,721 48,482,331 235,230 AIR FORCE ARMY MARINE NAVY OTHER FED SERVICE 288M Gallons of Jet A Purchased by 359 Aircraft Types Integrity - Service - Excellence (Oct 09 – Mar 12) 13 Jet A Conversion Road Map Current : Continue Jet A use at current locations (14) Expand to 10 additional bases in 2012 AF implementation plan approval in 2012 Plan for 60 additional bases in 2013 Continue to partner with DLA Energy and Services Mid-Term: (CY13-17) - Convert remaining locations in CONUS Long-Term: Expand conversion to commercial specification product worldwide Integrity - Service - Excellence 14 Remaining Items in Work… Army National Security Exemption to use Jet A in vehicles Navy Freeze point (V-22, P-3, EA-6) Air Force B-52 Flight profile modeling for freeze point Mercaptan Sulfur Global Hawk Update flight manual listing Jet A as a restricted fuel to account for when aircraft are diverted CV-22 – Freeze point study—Navy has the lead Integrity - Service - Excellence 15 DLA Energy Jet A Fuel Procurement Projections Two Annual DLA Energy Fuel Procurement Cycles Rocky Mountain West Coast (RMWC) Requirements: Apr Fuel Flows: Jan following year Inland East Gulf Coast (IEGC) Requirements: Jul Fuel Flows: Apr following year CY12 IEGC Conversions CY12 RMWC Conversions Fairchild Portland ANG Kingsley Field ANG Cusick Training Site Estimated Jun/Jul 12 Ellsworth Dyess Sheppard Laughlin Lackland Harrisburg ANG Baltimore ANG Estimated Aug/Sep 12 Requirements for CY 13 Conversions Edwards Isolated Supply Chains Complete Supply Chains Limit Impact on other Services Planning Underway Integrity - Service - Excellence 16 Jet A with Military Additive Package Product Markings M M M Consensus amongst Service Control Points Integrity - Service - Excellence 17 Take Away The Jet A conversion effort is about: Operational Flexibility Increasing Supply = Energy Security Procurement and Supply Chain Efficiencies Changing the Culture: JP-8 to Jet A – Smart for the 21st Century Integrity - Service - Excellence 18 Air Force Petroleum Agency Integrity - Service - Excellence 19