Airports can find a way to narrow price gap between conventional jet fuel and aviation biofuels, new study finds

Aviation biofuels can be priced competitively to help decarbonise air travel, a new study has found.

The study was conducted by US-based NGO Carbon War Room (CWR), Netherlands-based sustainable jet fuels SkyNRG and the Port of Seattle.

The study unveils recommendations for long-term mechanisms that could supply all airlines at Seattle-Tacoma International Airport (Sea-Tac) with sustainable aviation biofuels.

The paper reviews a broad spectrum of airport funding sources to cover the higher cost of biofuel, as well as biofuel supply chain infrastructure investments. The study was conducted by CWR and SkyNRG, in partnership with the Port.

“The information contained in this study will help us take the next steps toward our goal of making the biofuel available, cost-effective and practical for all airlines at Sea-Tac,” said Port of Seattle Commissioner John Creighton.

“It wouldn’t have been possible to get to this point without the momentum provided by our partners, industry leaders and community innovators.”

The two biggest challenges facing broader adoption of sustainable aviation fuel at Sea-Tac are the higher cost compared with petroleum jet fuel, and the constraints imposed by state and federal regulations on use of airport funds.

Higher cost of biofuel 

The report, titled Innovative Funding for Sustainable Aviation Fuel at U.S. Airports: Explored at Seattle-Tacoma International, reveals the financial tools available to US airports, and outlines legal constraints and financial impacts of each tool. The report found that no single tool could generate enough funding to cover the higher cost of biofuel, and recommended combining a number of funding tools.

“Until we reach fossil-price parity, we need co-funding mechanisms to close the price gap between conventional jet fuel and sustainable aviation biofuels. Sea-Tac demonstrates that airports can play a key role in helping to find the right partners to cover the premium and accelerate the transition to secure a sustainable future for the aviation industry,” said Theye Veen, chief financial officer of SkyNRG.

“We congratulate Sea-Tac on its leadership in showing that airport authorities are critical to the success of the aviation biofuel industry,” said Adam Klauber, director of CWR’s Sustainable Aviation programme. “We’ve proven that there are viable funding mechanisms for the widespread uptake of sustainable aviation fuel at Sea-Tac, and we hope that the study provides tools and ideas for other ambitious airports to consider in their sustainability initiatives.”

AltAir Fuels, based in California, is the only facility in the world regularly producing aviation biofuel, according to the company.  

The Port, as an economic development engine, is seeking ways to help grow the market. This initiative is one solution in the Port’s quest to find sustainable solutions that improve the health of our environment and community. Other Port successes include emissions reduction achieved by providing pre-heated and cooled air to aircraft parked at gates, use of electric ground support equipment, and conversion to green vehicles.