Can renewable jet fuels help airlines dodge EU aviation “carbon” charge coming in 2012?
Thursday, May 12th, 2011
I already posted on L.A.-based Rentech’s plans to build a $500-million jet fuel biorefinery four hours north of Sault St. Marie, Ontario, using residual crown timber. My latest Clean Break column looks at that project in more detail and against the backdrop of a coming European Union aviation “carbon” tax that will hit all airlines flying into the EU on Jan. 1, 2012.
Also, I had a chance to attend a panel at the BIO World Congress conference in Toronto this week on the challenges of producing renewable jet fuel. The panellists all agreed that producing low-carbon jet fuel from algae, jatropha, camelina and wood was not only technically doable but could be done economically. The potential problem, as one panellist pointed out, is that producers may opt first to make higher value products, such as green chemicals and nutriceuticals, which can fetch a much higher price per litre and, by association, a higher profit. In other words, we can make the green jet fuel, but will we use it as jet fuel?
So far, that’s Rentech’s intention — but will it change its mind? Either way, from a climate perspective, the end product will still presumably displace petroleum-based feedstocks, so it would seem all good in the end.

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Tyler Hamilton is editor-in-chief of Corporate Knights magazine and a business columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the clean technology and green energy market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper.