Why Amyris, Total SA, and The Boeing Company Are Excited About Renewable Jet Fuel
by Maxx Chatsko (The Motley Fool) The global aviation industry accounts for roughly 2% of all greenhouse gas emissions. On a per-passenger basis, a flight on an airplane emits far more greenhouse gases than the same trip in a car. The industry knows it needs to improve its carbon footprint — and it knows consumers are watching. While new lightweight aircraft offer one valuable solution by improving efficiency (perhaps the most valuable option), aircraft manufacturers are also searching for more sustainable sources of jet fuel.
Enter Boeing (NYSE: BA ) , which has been pushing global regulators to approve renewable diesel as a suitable blendstock for Jet A. While you may think the costs of renewable diesel would prohibit its use, the more sustainable fuel is actually cost-competitive with the petroleum-based incumbent with government incentives. The message appears to have gotten through: The global body responsible for approving and evaluating the specifications of new fuels is expected give the green light sometime in 2014. That could be a big development for the long-term success of the farnesene-based jet fuel being commercialized by synthetic biology pioneer Amyris (NASDAQ: AMRS ) and global energy powerhouse Total (NYSE: TOT ) , which is quickly moving through the approval process itself.
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Renewable diesel, also called green diesel, is not the same as biodiesel. It’s produced in a different process and is chemically similar to petroleum-based diesel, which makes it engine-compatible and allows it to be used in higher blends than biodiesel. And, while it would require ASTM International certification and approval, renewable diesel could one day be used as a 100% substitute. In the near term, renewable diesel will likely be blended with Jet A at a 10% rate and gradually approved for greater blends over time.
The benefits of using renewable diesel would be substantial. It emits at least 50% less carbon dioxide than fossil fuels over its life cycle and greatly reduces emissions of particulate matter and nitrogen oxide compounds, even at 10% blends. The reduction in particulate matter stems from the production process and feedstock sources used to manufacture renewable diesel, while petrochemical refining leaves various impurities that must be further refined to an ASTM acceptable level.
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First, Amyris will sell renewable diesel and renewable jet fuel to Total, which will then sell it to customers for niche applications. READ MORE