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Case Study on Biofuels
in the Aviation Industry
Arnaldo Vieira de Carvalho
Inter-American Development Bank – IDB
Energy Division
Infrastructure and Environment Department
Washington, DC [email protected]; +1 202 623 1719
Expert Workshop for the How2Guide for Bioenergy 27-28 November 2014
Sugarcane Technology Center – CTC, Piracicaba, São Paulo
Inter-American Development Bank - IDB
• Oldest regional development bank (1959): 48 member countries
- 26 borrowers (with >50% votes in the Board); HQs in Washington, DC, offices
in all borrowing countries; finances both private and public sector projects, with
or without sovereign guarantees. The IDB Group encompasses 3 institutions:
the Inter-American Development Bank, the Inter-American Investment
Corporation – IIC and the Multilateral Investment Fund - MIF.
Note: * Latin America and the Caribbean
• Main source for LAC* regional financing
Approved loans/guarantees: US$230 billion (US$12 billion/y)
Overall leveraged investments: US$500+ billion
Non-reimbursable technical cooperation: US$ 6 billion (US$800 million/y)
• 25% of portfolio now directed to climate change & clean energy
www.iadb.org
www.iadb.org/biofuelsscorecard
IDB Scorecard for Sustainable Biofuels
Examples of grant support to biofuels
- US-BR MOU: Haiti, Guatemala and Honduras
and DR Phase II to evaluate specific projects
- Mesoamerican Biofuels Network
- 2nd Gen Biofuels in Chile (Consorcio ForEnergy)
- Support to most LAC countries on biofuels
- New HIO under UN SE4ALL initiative
Main aspects of biofuels for aviation x passenger cars
• Key decision by aviation stakeholders: “drop-in” fuel, i.e., no need
for any modification in turbines or storage/distribution systems (as
opposed to ethanol for passenger cars that require flex-fuel cars or
converted/adapted engines).
• Technical standards, fuel specifications and safety/quality control
norms are uniform worldwide (non-existent in the ethanol/biodiesel
markets):
Smaller number of consumer points (# airports vs. # gasoline
stations)
Jet fuel less exposed to subsidies/tariff distortions
• Stakeholders consensus: airlines, aircraft/turbine manufacturers,
fuel producers, government agencies, all joining efforts (not seen in
the ethanol/biodiesel market).
• No mandate for biojet fuel blending, as seen for ethanol and
biodiesel
2010 2020 2030
1.00
Rela
tive
CO
2
in
cre
ase
growth (w/ no improvement)
carbon-neutral growth 2020+
alternative fuels fill the gap,
together with market tools
w/ aircraft technology improv.
w/ operational improvements 1.50
Aviation committed to carbon-neutral growth
ASTM D7566 approved in Sept 2009 synthetic fuels for aviation (for the 1st
time), and in July 2011 established requirements for renewable sources.
2040
50% by 2050, with
respect to 2010
Approved
Date Airline/sponsors (country) Aircraft Turbine
manufacturer Biofuel producer Feedstock Technology
Nov 2010 TAM (Brazil) A320 CFMI UOP Jatropha HEFA*
Apr 2011 InterJet (Mexico) A320 CFMI UOP Jatropha HEFA
Aug 2011 Aeromexico (Mexico-Madrid) B777-200 GE UOP Jatropha HEFA
Sept 2011 Embraer (Brazil) EMB 170 GE N/A Camelina HEFA
Sept 2011 Aeromexico 29 flights
(Mexico-Costa Rica) B737-800 CFMI UOP Camelina HEFA
Oct 2011 Iberia (Spain-Mexico) A320 CFMI UOP Camelina HEFA
Mar 2012 LAN (Chile) A320 CFMI Air BP Copec Used cooking oil HEFA
Jun 2012 GOL/IDB/others (Brazil) B737-800 CFMI UOP Used cooking oil,
non-edible corn HEFA
Jun 2012 Azul/Amyris/GE/
Embraer/IDB/others (Brazil) EMB 170 GE Amyris Sugar cane DSHC**
Jun 2012 Aeromexico
(Mexico-Brazil) B777-200 GE UOP/SkyNRG
Used cooking oil,
jatropha, camelina HEFA
Aug 2013 LAN (Colombia) A320 CFMI Air BP Copec Used cooking oil HEFA
Oct 2013 GOL/IDB/Boeing/others
(Brazil) B737-800 CFMI UOP
Used cooking oil,
non-edible corn HEFA
June 2014 GOL/IDB/Boeing/others
365 flights (Brazil) B737-800 CFMI UOP
Used cooking oil,
non-edible corn HEFA
July 2014 GOL/IDB/Amyris/others
(US-DR-Brazil) B737-800 CFMI Amyris Sugar cane DSHC
LAC biojet fuel flights (2010-2014)
Notes: * Hydro processed Esters and Fatty Acids ; also known as Bio-Synthetic Paraffinic Kerosene (SPK) or Hydrotreated Renewable Jet ( HRJ); ** Direct Sugar to
Hydrocarbons
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1st activity: Life cycle assessment of Carbon emissions during the
production and utilization of biojet fuel from sugar cane (DSHC):
82% reduction on carbon emissions; and Benchmarking of
Biofuels Sustainability Standards co-financed with Embraer and
Boeing
IDB Initiative for Sustainable Aviation Biofuels
Support demonstration (experimental)
flights with Azul Airlines (1st ever with
DSHC) during Rio+20
IDB Initiative for Sustainable Aviation Biofuels
and GOL (as part
of ICAO Flightpath) using different
feedstocks.
Brazil’s first commercial biojet fuel flight, CGH-BSB on October 24th, 2013,
following approval of Resolução ANP Nº 20; DOU 25 June 2013 for HEFA
IDB Initiative for Sustainable Aviation Biofuels
365 biojet fuel flights
during World Cup
between host cities and
support to MG/
Brazilian/Panamerican
Biojet fuel Platforms
See video: http://www.iadb.org/en/topics/energy/se4allamericas/renewables,17688.html
Brazil State-level tax (ICMS) applied to jet fuel could be
reduced (to 4%) to promote commercial flights during 2 yrs
Possible tax-incentives for aviation biofuels in Brazil?
Source: IDB-Embraer White Paper. Sept 2013
1st commercial flight using
sugarcane-derived biojet fuel:
July 30, 2014
• Example of technical assistance for ANAC: MIATA
computations at airport level for national goal of 15% biojet fuel
penetration in domestic operations (assuming 40% maximum blend
at a single airport: operations in top 4 airports would be sufficient)
Rank Airport Share of
domestic
jet fuel use
Maximum share of alternative fuel from
airport total use
40% 30% 20%
1 SBGR-Sao Paulo 14% 40% 30% 20%
2 SBBR-Brasilia 10% 40% 30% 20%
3 SBSP-Cong. 7% 40% 30% 20%
4 SBGL-Rio 7% 37% 30% 20%
5 SBKP-Viracopos 5% 30% 20%
6 SBRF-Recife 5% 30% 20%
7 SBSV-Salvador 5% 9% 20%
8 SBCF-B. Horiz. 5% 20%
9 SBRJ-Rio SD 4% 20%
10 SBFZ-Fortaleza 4% 20%
11 SBPA-P. Alegre 4% 20%
12 SBCT-Curitiba 3% 20%
13 SBBE-Belem 3% 17%
14 SBEG-Manaus 3%
15 SBCY-Cuiaba 2%
IDB Initiative for Sustainable Aviation Biofuels
• Feasibility study of the first HEFA commercial plant for production of
biojet for ASA of Mexico. Two alternatives were contemplated:
processing 2,000 and 6,500 barrels per stream day (bpsd) of refined
vegetable oil.
IDB Initiative for Sustainable Aviation Biofuels
Study on Camelina in Argentina:
feasibility of cultivation in marginal
areas in south of the country,
includes analysis of economic,
social and environmental issues.
IDB Initiative for Sustainable Aviation Biofuels
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Advisory Board
Ban Ki Moon & Jim Yong Kim
Co-Chairmen
Global Facilitating Team
Kandeh Yumkella
CEO
Regional Hubs
IDB, AfDB & ADB
RE & EE Hubs
High Impact Opportunities
Executive Committee
Chad Holiday
Chairman
SE4ALL Global Initiative
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Grants to ideas or innovative concepts about biofuels, renewable energy, EE, rural electrification; replicable, with scale up prospects
IDEAS Contest (www.iadb.org/ideas)
IDEAS 2009: 1094 proposals; 26 winners; < US$ 200k each; US$ 5 million;
November 2010 Cartagena workshop
IDEAS 2011: Incorporates lessons learned: online proposals and updated
selection methodology; 353 proposals; 9 winners; < US$ 400k each;
US$ 2.5 million
IDEAS 2012: Focus Caribe (< US$ 200k each); 8 winners; US$ 1.5 million
IDEAS 2013: SECCI, Korea, GDF SUEZ, NDF, MIF/FOMIN; < US$ 100k each
568 proposals; 10 winners
IDEAS 2014: receiving proposals until Jan 15, 2015
SENER/FSE/CONACYT, SECCI, MIF/FOMIN; < US$ 200k each
THANK YOU