US airline announces it has inked long term biofuel deal with SG Preston, delivering one of the largest renewable jet fuel deals in aviation history
The fledgling market for aviation biofuels received a major boost this week, after US airline JetBlue announced it has inked a 10-year deal with SG Preston to source jet fuel made from bio-based feedstocks that do not compete with food production.
The company said the deal "marks one of the largest renewable jet fuel purchase agreements in aviation history, and the largest, long-term, binding commitment by any airline globally for HEFA (hydro-processed esters and fatty acids) based renewable jet fuel".
It added that the new Jet-A fuel would significantly reduce air pollution and deliver net greenhouse gas emission reductions from its flights while resulting in no discernible difference in performance or safety.
Under the terms of the deal, financial details for which were not disclosed, JetBlue plans to purchase more than 33 million gallons of blended jet fuel a year for at least 10 years.
The fuel consists of 30 per cent renewable jet fuel blended with 70 per cent traditional Jet-A fuel. The renewable jet fuel will be made from select plant oils and is expected to deliver a 50 per cent or higher reduction in greenhouse gases emissions from the renewable fuel proportion of the blend based on a life-cycle analysis.
The companies added that the fuel is expected to meet the US Environmental Protection Agency's (EPA) qualification for renewable fuel standards, as well as the Roundtable on Sustainable Biomaterials certification standard for sustainable production of biofuels.
Robin Hayes, president and chief executive officer at JetBlue, said the future of aviation "relies in part on renewable energy sources".
"We're taking a leadership role in technology and other advancements including renewable jet fuels," he said in a statement. "JetBlue is preparing for a world where we must reduce our production of greenhouse gases. With this in mind, we have executed one of the largest renewable jet fuel purchase agreements. This is just one step of many in our work towards a lower carbon future."
The move comes ahead of a crucial meeting of the UN's International Civil Aviation Organisation where governments are expected to agree a new global market-based mechanism (GMBM), which is expected to introduce a carbon levy on flights in many markets around the world.
Consequently, growing numbers of airlines are investing in the development of lower carbon fuels and fuel efficiency improvements across their fleets. A host of jet biofuel trials have been successfully completed in recent years and now a number of airlines are looking to source increasing levels of bio-based fuels.
JetBlue said in its blended form the total amount of renewable jet fuel it will purchase equals approximately 20 per cent of its annual fuel consumption at New York John F. Kennedy International Airport (JFK).
However, some experts have warned switching the wider aviation industry to biofuels would require the rapid scaling up of the nascent industry and the identification of new sources of sustainable biomass.
Randy Delbert LeTang, SG Preston founder, chief executive officer and president, said the company was in a position to deliver renewable-based fuels at commercial scale.
"This strategic relationship with JetBlue is a continuation of SG Preston's commitment to develop reliable products from renewable resources at commercial scale and volume for stakeholders who recognise renewable has transcended buzzword status and is a critical component of responsible growth," he said in a statement. "Our strategy is to address the demand versus supply gaps in the industry and align development and delivery mechanisms to meet our customers' demand in the least disruptive way."
The deal was also welcomed by Michael Gill, executive director of the cross-industry Air Transport Action Group, who said it was part of an encouraging industry trend that has also seen United Airlines, Lufthansa, KLM, Cathay Pacific, FedEx and Southwest Airlines all make commitments to sourcing alternative fuels.
"JetBlue is joining a group of industry-leading airlines which are taking the bold, but smart choice to put themselves at the forefront of our sector's climate action," he said. "They should be warmly congratulated for making that choice. We have demonstrated that aviation can collaborate to improve efficiency and indeed a flight you take today will produce around half the CO2 that the same flight would have in 1990... Whilst the quantity of sustainable alternative jet fuel currently being used by airlines is small, this is a relatively recent development for aviation and it is encouraging to see more and more airlines playing a leadership role in getting this new energy source into daily operation."
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