BIOFUELS

The future of the Australian aviation industry

Emily McConochie, Isabela Becattini, Callum Thomas
University of Queensland
The Facts
In 2012/13:
2%
26%
operating
costs
98%
from
Jetfuel
h
u
m
a
n



e
m
i
s
s
i
o
n
s
+$50 Billion
The Real Cost
Vulnerability
Market Instability
Future oil prices
A NEW Carbon emission tax?
Opportunity
Stop soaring costs
Nurture a fledgling industry -> BIG Business
Support local jobs
Protect the environment
LEADERSHIP within Australian Market
Who are the Heroes?
Virgin Atlantic: first biofuel test flight 2008
KLM: First Commercial flight 2011
Canada: First Jet flight 100% 2012
Qantas: Eco-Pioneer Airline of the Year
Which Firsts?
Achievements to DRIVE CHANGE
40%
Biofuels 2050
International Demands
The International Air Transport
Association (IATA), to which Australian
airlines belong, has set aggressive
emissions reduction goals, including the
target of carbon neutral growth in the
industry beyond 2020.
Virgin Sustainability Program
Young and fuel efficient fleet - average age of
4.9 years
Fleet renewal program
Partnerships to the development of biofuels.
Is that enough?
What are other companies
doing?
Air Transport World Eco-Aviation
Awards
2013: Qantas won Eco-Pioneer
Airline of the Year category.
- Recognition of its long-standing
environment strategy and leadership of
the aviation industry.
What has been Virgin
doing in order to achieve
that? Virgin need to take
more risks.
UQ research
- Biofuels sector has the potential to become competitive with jet fuel sourced from oil
- but only if targeted investments are made.
- Sugarcane remains the most promising:
- higher fermentation yields could lower the viability benchmark to $168 a barrel.
- cost no longer as stratospheric, especially if potential for future global carbon prices are added.
- 40% oil content pongamia seeds, would need a crude oil price of $374 per barrel.
- the potential to drop to $255 if seed-oil content can be increased.
- Microalgae remains a long shot, needing a $1343 per barrel oil price to be competitive
- improved harvesting processes could reduce by more than two-thirds, to $385 per barrel.
Isn't that amazing? And Virgins opportunity is right here!
Increasing funding to UQ research and industry development you can be the
airline in the world that makes biofuels for aviation
a viable and competitive option.
What can you do?
1. Concrete action to establish a biofuels industry
Australian biofuel industry: feasible, cost-effective, desirable
Current support is great, however more action is needed
next level: infrastructure grants & investments to support startup industry
2. Establish an internal Biofuels Panel
Cross-departmental: pilots, engineers, experts, industry.
Follow example of Virgin Atlantic Fuel Efficiency Panel
Develop concrete timeline of targets for implementation
3. Appoint an appropriate executive representative
not just a sustainability issue time to branch out
key part of strategic planning for future
Conclusion
Question is not should we? but how quickly can we?
potential to become leader of innovation in Australia
competitors (QANTAS) already moving ahead
now is the time to act
existing partnerships give Virgin Australia a great advantage
partnerships + executive leadership + concrete timeline and goals = upper hand for the future!