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High Potential in North America for Low-Carbon Jet Fuels but Unlikely to Make Impact on ICAO Emissions Goal

Submitted by on June 15, 2017 – 11:57 amNo Comment

(GreenAir Online)  North America has a higher potential for the production of sustainable alternative jet fuels than other regions of the world because of its available resources but it is unlikely that switching to low-carbon fuels alone can make the necessary reductions in carbon emissions projected by ICAO to ensure the carbon-neutral growth goal after 2020, concludes a US study. Due to the high expense of alternative fuels relative to the projected low costs of offsets under the ICAO CORSIA scheme that starts in 2021 and the delayed transition from collective to individual offset responsibility, the incentive to switch is greatly reduced for an airline, particularly in the early years. The study by the International Council on Clean Transportation (ICCT) says robust policy support will therefore be needed to spur alternative fuel deployment at the scale needed to make a substantial contribution to CORSIA commitments.

There could be a substantial amount of low-carbon AJF feedstock, says ICCT, citing the US Department of Energy’s ‘2016 Billion-Ton Report’ that assessed the potential bioenergy supply in the United States towards 2040 across a variety of different economic scenarios and different feedstock price levels. The middle-price scenario projects that by 2030 there would be around 350 million tonnes of agricultural resources available, comprised of 50% energy crops, 40% agricultural residues and 10% woody crops. However, these feedstocks are highly sensitive to price, with many competing demands for biomass, notably from the road transport sector. Jet fuel only comprises 11% of US transportation fuel consumption. The supply of low-carbon feedstocks depends strongly on the price they can command in the market, while the aviation industry is highly sensitive to the fuel price.

The supply of used cooking oil and other types of waste fats that are currently being used to produce AJF by ventures such as AltAir in California is likely to be constrained in the future and only marginally increase in the period through to 2040. Nearly the entirety of the existing supply is being taken by the road transport, livestock and industrial sectors, notes a study cited by ICCT.

The annual jet fuel demand for international aviation in Canada and the US is projected to increase to around 10 billion gallons by 2035. Based on existing supply agreements between airlines and biofuel producers, only 112 million gallons of low-carbon AJF are expected to be readily available by 2025, less than 1% of jet fuel demand.

If, hypothesises ICCT, the aviation sector had access to 3% of agricultural biomass from residues and energy crops in 2035, this would translate to an additional 640 million gallons of ultralow-carbon AJF, the equivalent of displacing around 8% of North American jet fuel consumption by 2035. Assuming a carbon-intensity reduction of 80%, international aviation emissions could be abated by around 6.4 million tonnes annually by 2035, about 20% of the amount needed to meet the carbon-neutral growth target for the region.

Although in theory AJFs could deliver the remaining reductions, “extremely strong” policy support would be necessary and sustainable feedstocks diverted from other sectors, suggests ICCT, which says a valuable opportunity for policymakers exists to guide deployment towards the lowest carbon fuels at the outset before significant investments are made in higher carbon alternatives.    READ MORE

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