Guidelines for Integrating Alternative Jet Fuel into the Airport Setting (2012)

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4S E C T I O N 1 1.1 What Are Alternative Jet Fuels? Alternative jet fuels are fuels made from nonpetroleum sources that have the same perfor- mance characteristics as today’s petroleum-based jet fuels such as Jet A and JP 8. They can be pro- duced with different technologies and from a number of different feedstocks, both renewable and nonrenewable. Renewable feedstocks include plant oils, animal fats, and biomass (e.g., crop residues, wood chips, and prairie grasses); nonrenewable feedstocks include coal and natural gas. Depending on the feedstock and technology process used, alternative jet fuels have different environmental and economic characteristics. The location of production facilities with respect to feedstocks and end users is a key determi- nant of costs and, hence, the economic viability of alternative jet fuels. Therefore, it is important to consider alternative jet fuel projects in the context of their entire supply chain, as shown in Figure 1. In addition to location, an important logistical consideration for alternative jet fuels is blend- ing. Alternative jet fuels are currently certified and approved for use in existing jet fuel infrastruc- ture as blends. Thus, these fuels need to be blended with conventional jet fuel prior to injection into existing pipelines, storage, and other infrastructure and equipment. 1.2 What Is Driving the Interest in Alternative Jet Fuels? A diverse group of stakeholders, including airports, airlines, the military, and federal and local governments, want alternative jet fuels for a series of economic, operational, and environmental reasons. These reasons include: To diversify sources of conventional jet fuel: Alternative jet fuels offer the aviation indus- try the potential benefit of diversifying its supply of jet fuel. Virtually all of the jet fuel currently used in aviation operations is derived from petroleum. Petroleum’s limited spare productive capacity and associated volatile, steadily increasing price are key business challenges for the industry, primarily because jet fuel is one of aviation’s highest cost components. By dedi- cating resources to alternative jet fuels, the aviation community is looking for an opportu- nity to diversify its fuel supply chain and introduce competition to one of its main operating cost areas. To improve reliability and security of supply: Alternative jet fuels can incrementally secure the supply of liquid fuel to the airline industry. Given current technology, there are no practical options to power aircraft engines other than with liquid fuels. Unlike other transportation Introduction

Introduction 5 sectors, such as ground and marine transportation, the aviation industry will be unable to switch to nonliquid energy sources such as solar, nuclear, or hydrogen to power its airplanes, at least in the near term. As competition for petroleum-based products intensifies due to increased demand from other industry sectors and the possible exhaustion of this nonrenew- able resource, there are concerns that aviation may find it difficult to meet its needs of liquid fuels over time. Furthermore, alternative jet fuel production facilities need not be located in the same places where conventional refineries are located. This would allow the geographic diversification of production away from sites prone to natural disasters, such as the U.S. Gulf Coast. To enhance energy security: The United States is the largest net importer of petroleum. These import supplies are subject to disruption because of regional or international conflicts. As major users of petroleum-based jet fuel, U.S. airlines and the military would like to develop domestic alternatives to lessen the dependence on foreign sources. The production of alternative jet fuels using feedstocks that are available in the United States can help meet this goal. To reduce the volatility of the price of jet fuel: Alternative jet fuels may contribute to reduc- ing the volatility of the price of jet fuel. By diversifying the supply of jet fuel and making jet fuel less dependent on unstable foreign sources and more immune from the vagaries of financial flows in the futures markets, alternative jet fuels may lead to less variability in the price of jet fuel. Furthermore, as the alternative jet fuel industry develops, airlines may have the ability to enter into long-term supply contracts with potential producers that would specify a certain price or price band over time. To provide regional economic benefits: Alternative jet fuels have the potential to generate new jobs and spur economic activity, especially in rural areas where feedstocks can be grown. In addition, the growth of a domestic alternative fuels industry would help reduce U.S. imports of foreign crude, and thus those resources that would otherwise be spent abroad could be re-invested domestically. Alternative jet fuels can also mitigate the economic impact of carbon taxes or other charges under consideration for conventional jet fuel. To provide potential environmental benefits: As a user of petroleum-based fuels, aviation is a source of carbon dioxide (CO2), nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM). The introduction of alternative jet fuels can potentially help reduce aviation’s environmental footprint, providing benefits to the airports, their surrounding communities, and the airlines they serve. Conventional jet fuel Dedicated alt. jet fuel transport Conventional storage Blending locationProduction facility Airport and end users Feedstocks Figure 1. Schematic of the integrated alternative jet fuel supply chain.

1.3 Why Are Airports Interested in Alternative Jet Fuels? Airports can specifically benefit from alternative jet fuels for the following reasons: Improvements to local air quality: As mentioned before, alternative jet fuels have the potential to provide benefits in terms of reduced emissions of local air quality pollutants, such as NOx, SOx, and PM, compared to conventional jet fuel. This is of particular interest to air- ports that operate in air quality non-attainment areas, which means that they are operating or trying to build something in an area with air quality that does not conform to federal or state standards of acceptability with respect to various pollutants. Being a good citizen: As vital members of the community and important players in the local economy, airports want to actively contribute to the well-being of the communities they serve. Many airports are already making changes along the lines of being more environmentally con- scious by, for example, introducing electric-powered vehicles, building more energy-efficient buildings, and modernizing firefighting training facilities. The introduction of alternative jet fuels offers airports an opportunity to further their efforts to create a positive impact. Serving their airlines’ needs: Airports may have an opportunity to play an enabling role for sourcing and distributing alternative jet fuels to interested airlines. Furthermore, the availabil- ity of alternative jet fuel at an airport may attract additional air service from parts of the world that are particularly sensitive to environmental issues. This may lead to incremental business for the airports. 1.4 What Roles Can Airports Play in Alternative Fuel Projects? There are a number of ways in which airports can be involved with alternative jet fuel proj- ects. Before describing those roles, however, it is useful to briefly describe how airports are currently involved in the sourcing of conventional jet fuel. Airports ensure that safety and reg- ulatory requirements of fuel handling and storage are met but are not typically involved with commercial aspects of fuel sourcing. The supply of jet fuel at airports is typically the responsi- bility of airlines that enter into contracts with oil companies, third-party suppliers, or fixed- based operators (FBOs). Furthermore, the jet fuel infrastructure at airports is typically managed and maintained by third-party vendors on behalf of the airports or airlines. Thus, the sourcing and handling of jet fuel is usually not part of an airport’s core business. In the case of alternative jet fuels, however, there are opportunities for airports to get involved and be supportive of projects. While it is not currently expected that airports would take the lead and be the main project developer, there are multiple ways in which they can participate and offer support. For example, airports can: • Help obtain support from local and regional authorities; • Facilitate partnerships with feedstock producers, alternative jet fuel producers, airlines, and other stakeholders; • Conduct studies to identify the feasibility of introducing alternative jet fuels; and • Provide direct support, such as the use of airport property for construction of storage and other infrastructure that may be required. The kind of support that airports provide will depend greatly on the specific conditions and governing structure of each airport. Because this is such a new and maturing field, airport roles are likely to differ from site to site, but any contribution will be significant to get this industry 6 Guidelines for Integrating Alternative Jet Fuel into the Airport Setting

off the ground. Furthermore, innovative airports can look at alternative jet fuels as another means of new business development while at the same time supporting the airlines, being a good citizen, and helping improve the environment. A follow-on ACRP project, ACRP 02-36, “Assessing Opportunities for Alternative Fuel Dis- tribution Programs,” will investigate opportunities for airports to introduce a broader variety of alternative fuels, such as green diesel and compressed natural gas (CNG), in addition to alterna- tive jet fuel. This expanded scope should be of great interest to airports as they operate their own ground vehicles and other equipment, such as back-up generators, that can use these alternative fuels. For more information on this project, please visit http://www.trb.org/ACRP/ACRP.aspx and search for ACRP Project 02-36. 1.5 Limitations of the Handbook The field of alternative jet fuels is advancing very rapidly. The information contained in this handbook about the technologies and feedstocks to produce alternative jet fuels reflects the best knowledge as of the date of publication and is expected to be relevant in the short term. New technologies and feedstocks are expected to become available in the medium to long term; how- ever, given the large uncertainties surrounding these developments, it is not practical to attempt to discuss them in this handbook. The evaluation and tools developed in this handbook are expected to remain relevant despite new developments on the technology front. 1.6 Resources for Further Information The latest information about the development of alternative jet fuels can be obtained from the following sources: • The Commercial Aviation Alternative Fuels Initiative (CAAFI, www.caafi.org), a coalition of U.S. government agencies, manufacturers, airlines, and airport organizations. • The Air Transport Association of America (ATA, www.airlines.org), the leading trade associ- ation for U.S. airlines. • The International Air Transport Association (IATA, www.iata.org), an international airline trade association. • The Air Transport Action Group (ATAG, www.atag.org), an association that represents all sectors of the international air transport industry. • The Sustainable Aviation Fuel Users Group (SAFUG, www.safug.org), a coalition of airlines, manufacturers, and other organizations involved with alternative jet fuel. • Airport Cooperative Research Program (ACRP, http://www.trb.org/ACRP/ACRP.aspx), which supports a portfolio of projects on alternative fuels. Introduction 7