Airlines Get Ready for Jet Biofuel Take-Off in Norway

by Lefteris Karagiannopoulos (Reuters) Airlines are confident of having sufficient supplies of biofuel-infused jet fuel to comply with a Norway requirement which takes effect next year, although they warn of additional costs. From January, jet fuel suppliers in Norway must blend 0.5% of biofuel in all their aviation fuel, a policy Oslo hopes will boost supply and demand and lead to lower CO2 emissions.

Although aviation biofuel suppliers say it can cut the carbon footprint of airlines by up to 80%, it costs four times as much as normal jet fuel, which has so far curtailed usage and therefore demand for increased production.

And not all biofuels are equal when it comes to their environmental impact, both in production and transportation.

Norway’s new rule demands that airplanes refueled in the country use a product made from waste fats and vegetable oil, although it excludes palm oil.

But with Sweden and Finland considering following Norway’s lead — all three say that by 2030 they want to increase aviation biofuel use to 30% of total refueling — there is a danger that demand will outstrip production.

Neste and Norwegian utility Statkraft are also developing new plants, while similar projects have been announced by Air France KLM and AirBP. READ MORE