Shell Aviation: Jet biofuels must be priced competitively

The price of jet biofuels must come down sharply if the green alternative to traditional fossil jet fuels is to become competitive, said Gary Woodward, general manager operations/technical and supply at Shell Aviation. The International Air Transport Association (IATA) has pledged to cut aviation emissions by 1.5% a year to 2020, although the European Union is trying to persuade the industry to agree to cut emissions by 10% from 2005 levels by the same date. Both are tough targets given the steep rise in the number of flights globally. Woodward said some test flights had used vegetable oils, but these were not cheap at US$1,200 per metric tons compared with US$750 for traditional jet fuel. He said 60 commercial scale plants dedicated to biofuel production need to be built to both meet carbon targets and achieve economies of scale. (November 10, 2010)