http://www.theaustralian.com.au/business/aviation/virgin-air-nz-vow-to-back-aviation-biofuel-industry/news-story/0b6d7544e0dab352b1d66ce34a9c7db5
Virgin, Air NZ vow to back aviation biofuel industry
The Australian
March 15, 2016 12:00AM
Mitchell Bingemann
Reporter
Sydney
Virgin Australia and Air New Zealand are looking to kickstart a local
jet biofuel industry, pledging to buy substantial stocks of the fuel if
investors build production facilities to meet demand.
The two airlines yesterday issued a request for information (RFI) to the
market to explore the possibility of procuring locally produced aviation
biofuel.
Virgin head of sustainability Robert Wood said the development of a
local aviation biofuel sector would reduce aviation-made carbon
emissions and build “long-term fuel security for the sector”.
Qantas and its low-cost carrier Jetstar conducted biofuel trials in 2012
but did not pursue a formal use of the fuel, which was derived from used
cooking oil, because of cost and a scarcity of supply in Australia.
But Air New Zealand and Virgin hope to change that by committing to
buying a large supply should producers be able to manufacture and sell
biofuel at competitive prices.
“We are seeing the development of the aviation biofuel industry
accelerate internationally but that is not yet the case for our region,”
Mr Wood said.
“We are confident that our collaboration with Air New Zealand to procure
a large volume of aviation biofuel will de-risk investment in the
sector, creating hi-tech, high-skilled jobs in the region.”
The RFI sets broad terms that interested suppliers must meet, including
the need that any biofuel must be competitively priced compared to
fossil-based jet fuel, be available in significant quantities, meet
stringent testing and certification requirements and be produced in
accordance with internationally recognised sustainability criteria.
Interested parties have until May 30 to respond to the RFI.
Unlike non-renewable oil-based jet fuels, biofuel is derived from
organic matter contained in plants, trees, algae and waste. The fuels
are seen as an attractive alternative for oil-based jet fuel as they not
only promise long-term, sustainable supply but also promise to reduce
carbon emissions from fossil-based fuels.
Commercial aviation accounts for about 2 per cent of the world’s carbon
dioxide emitted by human activities, which is on par with the whole of
Germany’s output.
The search for a biofuel supplier follows a landmark international
agreement that was struck last month to set binding limits on carbon
dioxide emissions created by the aviation industry.
The new rules, announced last month by the International Civil Aviation
Organisation, mean the aviation industry will target a 4 per cent
reduction in fuel consumption of new aircraft, starting in 2028.
The new rules mandate that the emissions standards must not only be
applicable to new aircraft designs as of 2020, but also to new
deliveries of current in-production aircraft types from 2023.
The International Air Transport Association has also set targets to
tackle the environmental impact of the aviation industry including a 10
per cent quota of alternative fuel use by 2017.
The new standards aim to cut carbon emissions by more than 650 million
tonnes between 2020 and 2040, the equivalent to removing more than 140
million cars from the roads for a year.
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