FARNBOROUGH, U.K. July 21, 2010
- (MarketWatch) -- Forget about revolutionary light-weight
composite materials: a four-seater propeller plane is more likely
to hold the key to the future of aviation. Or at least that's the
hope of European aerospace and defense giant EADS.
The group, which owns Airbus, is showing off an aircraft powered
by algae juice at the Farnborough Airshow this week. EADS
(EURONEXT:FR:EAD) is betting that the small aircraft, which
completed its first successful flight last month in Germany, can
help make air travel kinder to the planet in the not too distant
future.
EADS/Dannenberg
As deadlines for the industry to cut its carbon emissions
loom and environmental disasters like the recent spill in the Gulf
of Mexico remind the world of the perils of oil exploration, jet
makers and airlines alike are more eager than ever to find
alternatives.
"We absolutely need to find a plan B for the replacement of
kerosene," EADS Chief Technology Officer Jean Botti told
MarketWatch in an interview on the sidelines of the air show.
"What we're doing on biofuels right now is a very promising way
of getting to that point. The potential from the use of algae is
the highest I have seen so far," he said.
The advantages of algae over other types of biofuels, such as
palm oil, are significant and help explain the enthusiasm it is
generating.
First, algae don't compete with other crops for agricultural
land and can even be grown in polluted water. Second, their
production consumes large quantities of carbon dioxide, which is a
big plus for an industry trying to become carbon-neutral by 2020.
Third, algae can be blended with traditional kerosene without the
engine or any pipes needing to be significantly modified.
The byproduct of algae production is a high-protein mixture that
could eventually be sold for use in pharmaceutical or cosmetic
products, thereby helping make the whole project more commercially
viable. Last but not least, it has been estimated that algae
produces up to 15 times more oil per square kilometer than other
biofuel crops.
"What you want in this is to create an industry that will
not be subsidized but self-sustaining. I don't want it to be like
the production of milk in Europe." EADS Chief Technology
Officer Jean Botti
Getting others on board
EADS would like to have a pilot program running within five
years, perhaps on a route like Paris-Toulouse, Botti said. His
long-term hope is for 10% of the global fleet to run on pure
biofuels, or a blend of them, by 2030.
EADS/Dannenberg
For that to happen, however, other industry players need
to get involved, in part because that will help bring down the cost
of producing algae, which is perhaps the biggest obstacle to its
wider use at the moment.
EADS didn't want to disclose the price for algae fuel, but said
it's more expensive than conventional fuel because it is produced
only in very low quantities.
"It is clear that the price does not come close to industrially
produced conventional kerosene," an EADS spokesperson said. "It is
our goal to industrialize the production of biofuel and make it
affordable for commercial purposes."
Everyone in the industry wants to believe in a big future for
biofuels, including the International Air Transport Association
(IATA), a trade body representing the world's biggest airlines.
At an event last month, IATA's aviation environment director,
Paul Steele, forecast in a presentation that 50% to 70% of jet fuel
could be replaced by biofuels by 2035.
There is definitely interest from the airlines, according to Max
Sukkhasantikul, analyst in the commercial aerospace and defense
practice of consultancy Frost & Sullivan.
Nearly a dozen carriers have run experiments with biofuels
including Deutsche Lufthansa (FRANKFURT:DE:LHA) , British Airways
(LONDON:UK:BAY) and Qatar Airways.
"The scientific evidence is there that biofuels can be used to
power aircraft. Now the problem is the scale needed to make their
use commercially viable," he said.
"And from what I understand the supply of algae is more viable
than any other alternative at the moment."
Like Botti, Sukkhasantikul believes the tipping point is not far
and the industry will eventually adopt a common standard on
biofuels that will greatly accelerate its availability.
"It's a matter of educating the industry. A few golden words
from Airbus and Boeing backing the technology and its use could
step up quite rapidly," Sukkhasantikul said.
In the wake of the catastrophic oil spill in the Gulf of Mexico,
oil companies, which have had a scattershot approach to investing
in biofuels so far, may be spurred to do more. Among the oil
majors, Royal Dutch Shell and BP (LONDON:UK:BP.) have been most
active in biofuels.
Still, not everyone believes the turnaround will be quick.
Last month, the U.S. Department of Energy published a report on
algal biofuels acknowledging the technology holds promise to help
meet the country's need for non-petroleum fuels, but highlighting
that it is at an early stage and will require years of development
to reach commercialization.
"What you want in this is to create an industry that will not be
subsidized but self-sustaining," said Botti of EADS. "I don't want
it to be like the production of milk in Europe."