1.4.09 - Fifteen airlines from the U.S., Canada, Germany and Mexico signed
non-binding memoranda of understanding to buy aviation fuel from two
U.S.-based producers, industry trade organization Air Transport
Association of America announced in December.
Los Angeles-based synthetic fuels and fertilizer company Rentech
(AMEX:RTK)
and Seattle-based AltAir Fuels both signed MOUs with 12 airlines:
Air Canada, American Airlines, Atlas Air, Delta Air Lines, FedEx
Express, JetBlue Airways, Lufthansa German Airlines, Mexicana
Airlines, Polar Air Cargo, United Airlines,
UPS Airlines and US
Airways.
In addition, AltAir Fuels signed agreements with Alaska Airlines
and Hawaiian Airlines, while Rentech added AirTran Airways to its
MOU.
AltAir Fuels said the deal could amount to 750 million gallons
over 10 years of renewable jet fuel and diesel derived from camelia
oil, a relatively new next-generation biofuel feedstock that
Bozeman, Mont.-based
Sustainable Oils supplied to
Japan
Airlines for a flight in January (see
Japan Airlines completes camelina biodiesel flight). Camelina, a
distant relative to Canola, can grow on marginal land, requires
minimal water or fertilizer, and can be harvested with traditional
equipment.
AltAir Fuels plans to buy the camelina oil from Sustainable Oils,
refine it using technology from
Honeywell
(NYSE:
HON) subsidiary
UOP, and blend
it with petroleum-based jet fuel and diesel. AltAir’s planned
facility in Anacortes, Wash., is expected to have the capacity to
produce 100 million gallons of fuel per year starting in 2012. The
company also expects to supply diesel for ground equipment at the
Port of Seattle facilities.
Rentech expects its MOU could result in sales of 250 million
gallons of synthetic jet fuel per year—the entire synthetic jet fuel
output expected from the company’s planned Natchez Project. The $4
billion-to-$4.5 billion plant in Natchez, Miss., is expected to
produce 120 MW of electricity, as well as about 400 million gallons
of fuels and chemicals annually (see
Mississippi extending sweet deal to coal-to-fuels plant).
Rentech has also contracted to sell all of the carbon dioxide to be
captured to Denbury Onshore, a subsidiary of Denbury Resources, for
enhanced oil recovery.
However, this isn’t Rentech’s first airline supply agreement. In
August, Rentech signed a deal to sell up to 1.5 million gallons per
year of renewable synthetic diesel fuel for ground-based equipment
at the Los Angeles International Airport to Aircraft Service
International Group, which provides fueling to airlines. The
airlines that signed both deals with Rentech are American, Delta,
United, UPS and US Airways. In addition, the August deal included
Alaska Airlines, Continental Airlines and Southwest Airlines (see
LAX signs first supply deal for synthetic diesel from Rentech).
The late-2012 fuel delivery is timed with the expected
commissioning date of Rentech’s proposed plant in Rialto, Calif.,
which is expected consume urban woody waste such as lawn clippings,
in addition to sewage sludge supplied by
EnerTech Environmental to produce 600 barrels per day of
synthetic diesel fuel and export 35 MW of power.
Rentech's technology, based on the Fischer-Tropsch process, makes
synthetic fuel from biomass, sewage sludge, natural gas and coal.
Rentech's expertise lies in syngas to hydrocarbon synthesis, and the
company uses UOP’s technology
for hydrocarbon conversion (see
Rentech, UOP expand clean fuel offerings).
Fuel based on the Fischer-Tropsch process, including Rentech’s
RenJet, is the only alternative jet fuel currently certified for use
in commercial aviation at up to a 50/50 blend with traditional jet
fuel. AltAir said
Boeing
(NYSE:
BA) is leading the ASTM Emerging Fuels Taskforce, which expects
to gain approval in 2010 for aviation fuel derived from biomass
sources, including camelina.
Specifications for jet fuels are extremely stringent because the
industry is more risk-averse than other transportation methods. Last
year, a consortium of the airline industry formed to require its
members to use biofuels produced from nonfood sources and with
minimal environmental impact. The Sustainable Aviation Fuel Users
Group includes Boeing and UOP, as well as the commercial airlines
that account for 15 percent of commercial jet-fuel use: Air France,
Air New Zealand, All Nippon Airways, Cargolux, Gulf Air, Japan
Airlines, KLM, SAS and
Virgin
Atlantic Airways (see
Game-changing day for jet biofuels).
The group’s intent amounts to an endorsement of the progress
being made by second-generation biofuel developers.
Rentech Announces Achievement of Critical Milestone in Synthetic Jet
Fuel Certification
(June 25, 2009) – Rentech, Inc.
(NYSE AMEX: RTK) announced today that the aviation fuels subcommittee
of ASTM International, the standards development organization,
yesterday passed specifications for synthetic jet fuel for commercial
aviation use. The new jet fuel specification, once issued, will enable
the use of fuels from the Fischer-Tropsch process, including Rentech’s
RenJet® synthetic jet fuel.
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