When are biofuels sustainable -

1. When are biofuels sustainable - and why is this important to the aviation industry?

2. Version DNV Aviation Experience ATC Certification Construction Work Runway 3rd Party Risk Capacity Holding Points Ground Services Landing Sustainability Security Transport Management Modelling Approaches Safety culture Fuelling

3. What are biofuels? Feed stock Intermediates Conversion Bio-jet fuel Chemical Transestrification Polymerization … Crops/ annuals Sugarcane Grains Seeds Grass Etc… Fats and oils Additional conversion Starch Biochemical Fermentation Enzymatichydrolysis … Biodiesel Sugars Refining and purification Trees Hardwood Softwood Alcohols Cellulose Hemicellulose Lignin Thermochemical Fischer-Tropsch Pyrolysis Gasification … Biogas Marine biomass Micro-algae Macro-algae Hydrocarbons and natural oils Chemicals Combustion Waste Household Industrial Agricultural Power generation Process waste

4. What is sustainability?

5. Why should we care about sustainability?

6. Aviation has an impact on CO2 emissions Aviation is responsible for an estimated 500 million tons, or 1%, of annual anthropogenic CO2 emissions. Unchecked, the industry estimates the aviation sector will be responsible for over 5% of global emissions by 2020.(IPCC) 80 % of CO2 annually emitted by aircraft are from those flying more than 1,500 kilometers There is no alternative mode of practical transportand given the energy density of kerosene, there really is no alternative to liquid fuel either 15.614 billion gallons of jet fuel used in 2009 600 million gallons of biofuel a year by 2015(The Sustainable Aviation Fuel Group)

7. Technical improvements will not be enough

8. Some business risk are obvious

9. Ignoring the sustainability issues is a business risk http://euobserver.com/media/src/d8bb03efb1c25472b339f8793a8829f5.jpg http://www.cannews.com.cn/2012/0313/185752.html http://www.planestupid.com/actions?page=2

10. Governments may ensure that CO2 will not be ignored http://www.flyerspulse.com/2012/01/03/european-union-emissions-trading-costs-uk-apd-tax/

11. The aviation industry is active in biojet fuel development

12. Not all biofuels are created equal • http://www.qantas.com.au/travel/airlines/sustainable-aviation-fuel/global/en • http://renewablejetfuels.org/ Sustainable Aviation Fuel (SAF) as defined by Quantas advanced jet turbine biofuel made from next generation biomass sources such as algae, municipal waste streams, waste tree oil and specially selected types of biomass energy crops which do not compete with food crops. To be acceptable for commercial use, SAF must: Be certified in accordance with the aviation industry's stringent safety and performance requirements Have a reduced lifecycle carbon emission compared to traditional fossil based jet fuel as well as meet comprehensive sustainability criteria Be a 'drop-in' alternative to traditional fossil based jet fuel to avoid costly redesign of engines, airframes or fuel delivery systems.

13. Sustainable Aviation Fuel Users Group (SAFUG) definition of sustainable biofuel Perform as well as, or better than, traditional fossil fuel jet kerosene from a technical perspective but with a smaller carbon lifecycle; Use only biomass feedstock sources that minimise biodiversity impacts, require minimal land, water, and energy to produce; Not compromise food security; Not jeopardise drinking water supplies; Provide socioeconomic value to local communities where biomass is grown.

14. EUs definition of sustainable biofuels • EU Directive 2009/28/EC (Renewable energy directive: RED) requires: • Proof of sustainability of biomass: • no production from no-go areas (high biodiversity or high carbon stocks), • sustainability of production and operations • monitor social sustainability and food security • Raw material should not be obtained from : • wetlands • continuously forested areas • from areas with 10‐30% canopy cover • from peatlands • if the status of the land has changed compared to its status in January 2008 • GHG savings: • biofuels and bio‐liquids must yield a GHG emission savings of at least 35% • (50% from 2017, 60% from production started after 2017) • Traceability and mass balance must be assured

15. What is included in the certification of sustainable biofuels? “globally harmonized system streamlines international aviation operations and helps to drive the adoption of sustainable aviation biofuel.” SAFUG 7. Conservation 8. Soil 9. Water 10. Air 11. Use of Technologies, Inputs & Management of Wastes 12. Land Rights 1. Legality 2. Planning, Monitoring & Continuous Improvement 3. Greenhouse Gases Emissions 4. Human & Labour Rights 5. Rural & Social Development 6. Food Security RSB Principles

16. Sustainability standards related to biomass and biofuels Global All biofuels and biomass ISEAL Global Agricultural farms ISEAL Global All biofuels and biomass Global Sugarcane United States Cellulosic biofuel feedstocks Global Palm Oil Global Forest products ISEAL Global Soy http://renewablejetfuels.org/what-we-do/sustainability

17. Baselines: How GHG for fuel is calculated can have consequences http://www.sciencedirect.com/science/article/pii/S0921344909000500 http://www.sciencedirect.com/science/article/pii/S0961953410004071

18. Indirect land-use change (ILUC) may need to be considered Indirect land-use change (ILUC) occurs when the production of crops for biofuels in a given land pushes the previous activity to another location. The use of the new location to place the previous activity generates a land-use change attributable to the implantation of the biofuel crop. In other words, if the crops needed to make a particular batch of biofuels crops are grown on uncultivated land, this will cause direct land use change. If crops grown on existing arable land are used to make biofuels instead of food, this will likely cause ILUC because of the necessity to replace the food. Due to changes in the carbon stock of the soil and the biomass, indirect land-use change has consequences in the greenhouse gas (GHG) balance of a biofuel. Climate regions data layer processed on the basis of the Intergovernmental Panel on Climate Change classification http://ies.jrc.ec.europa.eu/our-activities/support-for-eu-policies/indirect-land-use-change.html http://ies.jrc.ec.europa.eu/our-activities/support-for-eu-policies/indirect-land-use-change.html

19. How far can costs be pushed down? • Cost per gallon pyrolysis oil http://legacy.icao.int/sustaf/Docs/18_RichardAltman.pdf

20. Trade… or will the fuel be used locally? The potential for international trade in biojet fuels appears to be high …at a blend of 10%, the potential trade of biojet fuel will be between 36.8 and 57.5 Mt by 2050. http://www3.weforum.org/docs/WEF_FutureIndustrialBiorefineries_Report_2010.pdf IEA report “The potential role of biofuels in commercial air transport - biojetfuel”)

21. Sustainable biofuels for the aviation industry will need support from all stakeholders • http://www.safug.org/assets/docs/SAFUG_Brochure.pdf Continued Advancement Needs: Government support for development of aviation biofuel consistent with international trade commitments Policies designed to accommodate the specificities of aviation Global harmonised sustainability criteria Further research to develop sustainable feed stocks

22. Conclusions Biofuel sustainability criteria defined by the industry are challenging, but needed Proving sustainability will require certification and traceability systems – new systems and added costs compared to fossil fuels Costs – current estimates are ca2.8-3.7 USD/gallon (0.74-0.97 $/litre) (Bauen et al., (2009)) Still a great degree of uncertainty over its production costs as aviation biofuels are not currently being produced on a commercial scale “There is no silver bullet and it is imperative that policy makers, governments, universities, airlines, farmers, refineries and R&D work together to tackle the fuel problems of the aviation industry. Major advances are also necessary in relation to logistics, regulatory frameworks, quality control management and adoption of appropriate sustainability certifications.” (IEA report “The potential role of biofuels in commercial air transport - biojetfuel”)

23. Sustainability Being able to understand and manage sustainability risks and opportunities is essential to the success of organisations in the aviation industry. • DNV’s Sustainability services in aviation include: • Sustainability strategy development • Corporate Sustainability risk assessment • Certification of biofuels • Quality and traceability systems • Sustainability management and performance benchmarking • Integrated HSEQ management systems • HSEQ assessment, auditing and certification • Greenhouse gas emissions monitoring, management, reporting and verification • Environmental Impact Assessment • Stakeholder management and communication • Sustainability reporting advice and assurance • Supply chain risk management • Business continuity and crisis management

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