The CAAFI Coalition.Leading the Quest for a New, Sustainable Jet Fuel Dynamic Presentation for the Financial Community By: Richard Altman - Executive Director Commercial Aviation Alternative Fuels Initiative (CAAFI) +1 860-761-8634 8634, altrich@cox.net Donald P. Schenk ACA Associates, Inc. +1 212-808-4420, dpschenk@aca-assoc.com www.aca-assoc.comcom www.caafi.org Aug 2009
Agenda CAAFI CAAFI s philosophy CAAFI s approach to development How is CAAFI organized to meet goals in the U.S? Globally with partners? CAAFI s financing and deployment strategy 2
Dedicated to Deployment of Alternative Aviation Fuel Aircraft OEMs Aircraft Engine OEMs Aircraft Equip Cos NRC Canada ANP Brazil Bauhaus UK MoD Aerospace Industries Association Federal Aviation Administration NIST NASA DESC USAF US Army DARPA USN Stakeholders AIA ATA FAA Sponsors USDA DOE ACI DOC Consultants Universities Think Tanks Air Transport Association Airports Council International IATA NetJets Air Cargo Airlines CRC Oil Companies Bio-Fuels Companies Energy Companies ALPA Airport Operators ASTM.Over 300 Sponsors/ Stakeholders from All Continents 3
CAAFI Leverages Sponsor Strengths R&D Panel (led by Boeing) Generate Ideas/Solutions Environmental Panel AIA (led by FAA Environment & Energy) ATA FAA ACI Business & Economics Panel (led by US Airways) Generate Demand & Target Funding Certification-Qualification Panel (led by FAA Airworthiness) Assess Impact Enable Supply..Process Owners Lead Teams & Drive Outcomes 4
CAAFI s Sustainability Mission The CAAFI Coalition seeks energy security and environmental sustainability for aviation to promote the development of alternative fuel options that offer equivalent levels of safety and compare favorably with petroleum based jet fuel on cost and environmental basis, with the specific goal of enhancing security of energy supply. 5
CAAFI Global Vision Speed Development of Alternative Aviation Fuels Single R&D Roadmap One LCA Framework Promote Multiple Feedstocks & Projects Engage ICAO Nov. Conference prior to UN Climate Change Conference Consulting with EU 6
CAAFI Major Milestones CAAFI founded 06 USAF 600,000 gallon bio fuel buy current - 50/50/50 by 2016 (25% of US based consumption) DOE grant program for alternative energy projects USDA loan guarantee program with aviation availability 08 DARPA funding of algae research 09-11 Demonstration flights 08 & 09 Presidential directive to USDA and DOE on common policy for alternative energy 09 ASTM - first level approval FT Process June 09 7
CAAFI Future Targets In future.. ASTM full approval of FT Sept. 2009 Achieve common ICAO position at conference in Nov 2009 ASTM approval of hydo treated renewable jet end 2010 Deployment of 10 projects by 2013 ICAO carbon neutral growth by 2020 8
Challenge: CAAFI S Challenge: Reducing Aviation s Reduce Carbon Footprint (Relative CO 2 increase) ICAO Goal of Carbon Neutral Growth by 2020 150 1.50 growth (no improvement) w/ operational improvements w/ aircraft technology 1.00 carbon neutral growth w/ alternate fuels? 2008 2015 2025 Source: Richard Altman 9
CAAFI s Approach to Development Ensure safety Support certification Promote alternative non-food based feedstocks Reduce LCA & promote common analytics ICAO wheels-to-exhaust FAA/MIT ground-to-plane Improve air quality Leverage airline purchasing power Speed deployment through global vision 10
Reduce LCA and Promote Common Analytics Three pathways meriting additional analysis: 1) Coal-Biomass to F-T Fuel 2) Algae to Biojet (HRJ) 3) Jatropha to Biojet added feedstocks (e.g. Camelina) (HRJ) Additional pathways being considered (e.g. halophytes to HRJ) For additional information, contact: Jim Hileman, hileman@mit.edu 11 Source: GIACC/4, subject to change 04/09.
Air Quality (PM 2.5 ) Can Limit U.S. Aviation Growth Growing demand ~3X Note: Not to 3x scale ~2X 2.4x Passengers 18-2 1.8-2.4X Preliminary Analyses of Emissions Growth for NextGen Scenarios a growing footprint HC CO NOx 2X Change + 75% + 70% + 90% SOx + 85% 1X 2004 2014 2025 Time 20?? Data for 50 Largest U.S. Airports 120 precursor to PM 100 2.5 driven capacity 60 constraints? 40 controllable with alternative fuels? 80 Non-attaunment 20 0 Ozone PM 2.5 Attainment 12
Improve Air Quality 0% -10% -20% Idle 1.3 1.5 Max TF33 Engine/ B-52 Aircraft % Change in PM Mas ss EI -30% -40% -50% -60% -70% -80% -50% -52% -28% -31% -36% -39% -38% -38% Engine 7 Engine 8 30-50% reduction in Particulate Mass EI with 50/50 FT/JP-8-90% -100% umber Density % Change in Particle N 0% -50% -75% -100% Engine Power or EPR 12.5 25 37.5 50 62.5 75 87.5 100-12% -13% -25% -30% -33% -41% -50% -51% -57% -61% -68% Cruise -75% -78% Idle -86% -92% -96% 12.5 25 37.5 50 62.5 75 87.5 100 % Volume of FT Fuel in JP-8 T63 Engine 75-95% reduction in Particle Number with 100% FT 13
Leverage Airline Purchasing Power Identify airport fuel cost differences Quantify airport fuel consumption needs Airlines Ground support equipment CAAFI Economics Council evaluate industry purchasing opportunities Use champions to support deployment opportunities 14
Financing & Deployment Strategy Promote awareness of fcaafi&it its resources Support projects with airline industry purchase contracts Dispense information of financing availability to project sponsors Promote knowledge of alternative energy and industry needs to public and private financing sources Identify needs of private sector investors Support required incentives Joint initiatives 15
Recommendations/Ideas Information on your alternative energy initiatives How can CAAFI help you? Invitation to CAAFI September meeting Agree on follow up 16