Commercial Aviation and Sustainable Fuels The Path to Viability Michael Lakeman Director, Biofuel Technology Strategy Boeing Commercial Airplanes May 3, 2016
Typical jet fuel chemistry Ideal Carbon Length C8-C16 Paraffins (75-95%) H 3 C CH 3 CH 3 Normal Paraffins Iso-paraffins Cyclic Paraffins Aromatics (<25%) H 3 C H 2 C CH 3 Olefins (<5%) Sulfur, Nitrogen, Oxygen Containing Compounds S OH Acids, phenols, etc 2
The Technology Landscape 3
4 Fuel approvals will further expand supply Fischer-Tropsch (2009) HEFA (2011) Approved Direct fermentation of sugar (2015) Isobutanol to jet (2016) FT-SKA (2016) Green Diesel In the pipeline Hydrotreated depolymerized cellulosic Catalytic hydrothermolysis Catalytic sugar Alcohol to jet (ethanol) Many others
ASTM fuel approval process- ASTM D4054 Test Program OEM Internal Review Specification Change Fuel Specification Properties OEM Internal Review Reject or Additional Data as Required Fit-for-Purpose Properties ASTM Review & Ballot Component or Rig Tests Research Report Reject or Additional Data as Required Engine Endurance Test FAA Review OEM Approval Incorporate into Fuel Specification with FAA Consensus ASTM Specification In depth, multiparty review 5
Biofuel and the Jet Specifications Fossil Jet- A/A1 Produced to Def Stan 91-91 or D1655 1 100% Biofuel Tested to an Annex in D7566 1 D7566 Annex also defines feedstock and process Jet-A/A1 Biofuel Blend Recertified to D1655 or designated as Def Stan 91-91 1. ASTM D1655 and D7566 standards covers a wide variety of fuel properties and specify which tests should be conducted to verify these 6
Costs of biofuel near and longer term $24 $20 $/Gal 2014 2018 $22.7 $16 $15.1 $12 $9.8 $8 $4 $3.0 $3.0 $4.7 $4.7 $5.4 $3.4 $5.8 $3.3 $0 Jet fuel price Palm oil 2 Biomass 3 Jatropha oil 2 Waste 4 Algae oil 2 $0.0 Near term premium, but moving closer to parity Source: Bloomberg New Energy Finance, March 2012 1. Based on oil price of $100/bbl 2. Converted to jet via hydrotreatment 3. Converted via pyrolysis and hydrotreatment 4. Converted using gasification and Fischer Tropsch. No plants expected to be built by 2014 and thus no cost included. Note: In 2018 cost estimates, BNEF assumed all but algae pathway have reach full commercialization. Copyright 2012 Boeing. All rights reserved.
3 major levers drive long-term trends Oil price Emissions costs Biofuel technology costs All pointed in favor of biofuels 8
Green diesel: Aviation biofuel breakthrough Used today in ground transportation 1.2+ billion gallons production capacity in US, Europe, Brazil, Asia Chemically similar to HEFA biofuel approved in 2011 Price approaches Jet A, including government incentives Boeing tested 15% green diesel blend with ecodemonstrator 787 Reduces CO 2 by 50-90%, according to Neste Oil
The Technology Landscape wide open! 10
Boeing s Role and Actions Boeing s Role Core activities Protect our environment Support and Advocacy Assure industry growth Act as industry catalyst to accelerate commercialization Feedstock and Pathway R&D Address customer s top cost Fuels approval Ultimate goal is to catalyze a vibrant commercial market 11
Boeing global biofuel engagements 8 11 10 10 8 9 1 2 3 4 18 17 18 19 15 16 14 15 16 17 13 14 1. Pacific Northwest roadmap 2. Midwest biofuel initiative 3. Green diesel commercialization 4. Renewable Fuel Standard advocacy 5. Brazilian Biojetfuel Platform 6. Joint biofuel research with Embraer 7. GOL biofuel flights * Global coordination for Sustainable Aviation Fuel Users Group 7 6 5 8. Virgin Atlantic / LanzaTech collaboration 9. AIREG Membership 10. Nordic Initiative for Sustainable Aviation 11. South African Airways biofuel collaboration 12 11 12. Australia biofuel roadmap 13. Southeast Asia smallhold farm initiative 14. UAE project with Etihad and Masdar 15. BIOjet Abu Dhabi with Etihad 16. Biofuel R&D in China 17. Gutter oil facility with COMAC 18. Hainan Airlines commercial flight 19. Japan biofuel roadmap 13 12
Moving From Dreams to Reality Aviation Biofuel Progress ASTM approval for commercial use Organized demand commercial and defence Favorable policy developments Commercial flights continue Next Steps Expanded ASTM approval Emphasis on policy continuity Research expanded feedstocks/pathways Innovation supply chain and commercial Great progress. Superior fuel. Early in the journey. 13
Boeing is committed to a sustainable future