Commercial Aviation Alternative Fuels Initiative November 18, 2013

1. Commercial Aviation Alternative Fuels InitiativeNovember 18, 2013 Subtitle Nate Brown Alternative Jet Fuel Project Manager Federal Aviation Administration

2. Why Do The Airlines Want Alternative Jet Fuels? Airline Economics Surging Fuel Expense Offsetting Labor Restructuring Fuel Price Volatility a challenge to business Fuel Supply Security Reliance on Imported Oil Disruptions to fuel supply (e.g. Hurrican Katrina) Demand from Other Transportation Modes Concern about Carbon Emissions Industry and ICAO goals for Global market based measures Regional GHG Emissions Trading Schemes

3. CO2 Emissions Forecasted Emissions Growth Absent Reduction Measures Ongoing Fleet Renewal / Technology Development ATC/NowGen/ Operational Improvements Renewable Fuels (lifecycle basis) Baseline 2050 Carbon Neutral Growth and Reduction Timeline How Does Aviation Meet Its Targets? Technology, Fuels, Operations & Infrastructure Potential Role for Carbon Credits to Bridge Notional Example Key Contributor Potential role for carbon credits airlines.org

4. How Do Renewable Fuels Offset Greenhouse Gases? Life Cycle Analyses (LCA) Petroleum-Derived Jet Fuel Bio-Derived Jet Fuel GHGs GHGs

5. How Is the Aviation Industry Supporting Alternative Jet Fuels? An Aviation Industry Coalition Established to… Facilitate and Promote the Introduction of Alternative Aviation Fuels www.caafi.org

6. CAAFI Sponsors

7. Who Participates in CAAFI? 20 Airlines, Military, Airport orgs. 15 U.S. States / State Univ’s 15 Aircraft, Engine, Subsystem OEM’s 30 U.S. Government Offices 19 Countries / 5 Continents 54 fuel producers 300 Global Sponsor/Stakeholder Attendees 180 Different Organizations, 32 EXPO Participants * Attendance at 2011 Annual General Meeting

8. Facilitate Deployment, Investment Multiple “Drop-in” Solutions Life Cycle GHG, Particulate Matter, Sustainability ASTM D7566 How CAAFI Works • Four teams addressing challenges to adoption • Meet periodically each year • Led by FAA, A4A and engine and aircraft OEMs Certification-Qualification Team Environmental Team Business & Economics Team R&D Team

9. CAAFI Resources • CAAFI first point of contact for new stakeholders • Create primers, guidance and communication tools for the CAAFI community • Available at www.caafi.org

10. HEFA July 1, 2011 FT Sept 1, 2009 ASTM D7566 Sept 1, 2009 Coal Natural Gas Biomass Approved Alternative Jet Fuels 2015 Also Called HRJ or Bio-SPK 2014 2013 2012 2011 Drop-In Fuel Spec Plant/Animal Oils 2010 2009

11. Coordinating USG Efforts across Supply Chain Facilitating Deployment and Investment Conversion Process Scale-up/Integration FeedstockProduction End User/ Buyer FuelConversion Enable Production FeedstockLogistics Fuel Testing/Approval Environment Assmt Fuel Performance Agriculture: Feedstock Development Center Grants FAA, Defense, & NASA: Enviro Analysis Agriculture, Navy, & Energy: Defense Production Act and Biorefinery Program Defense & Airlines: fuel purchase FAA & Defense: C/Q Fuel testing Agriculture: Biomass Crop Assistance Program & Crop Insurance Program Agriculture& Energy: R&D grants Energy & Defense: R&D grants FAA: Guidance for Airports EPA: Renewable Fuel Standard

12. Farm to Fly 2.0 … “THEREFORE, AS OUR GOAL, we the undersigned, jointly signify our intent to continue working together over the next five years in an expanded collaboration entitled “Farm to Fly 2.0”, to enable commercially viable, sustainable bio-Jet Fuel supply chains in the U.S. that are able to support the goal of one billion gallons of bio-Jet Fuel productioncapacity and use for the Aviation Enterprise by 2018”

13. State & Regional Deployment • Working with local lead organizations/POCs • Provide context, advice, strategy, benchmarking • Facilitate networks & links between stakeholders • Link to Farm to Fly 2.0 States: California Connecticut Colorado Florida Georgia Hawaii Illinois (MASBI) Iowa Louisiana Mississippi Nebraska New Mexico New York/New Jersey Nevada North Carolina Ohio South Carolina Vermont Washington (SAFN) buyer/producer offtakes -- studies, Pilot Plants, Demos -- USDA, DOE or DPA programs

14. Coordinating with International Efforts SWAFEA/Alfabird ABRABA/SABB CAAFI Australia / AISAF ICAO Aireg SENASA/ITAKA IFP Energy Nouvelle Sky NRG • Formal and informal coordination • International Airshows • Workplans - Bilateral Cooperation Agreements • Coordination with R&D organizations • Global Exchange meeting • ICAO as forum for exchange

15. Airlines Are Now Flying With Drop-In Alternative Jet Fuels April 30th, 2010 October 12th, 2009 1999 - Present Nov 2011 (75 Flights) July-Dec 2011 (1,187 Flights) Nov 7th, 2011 June 29th, 2011 Mar-Aug 2013 FT From Natural Gas: FT From Coal: HEFA From Plant Oils and Algae:

16. But… Production Scale-Up is a Challenge

17. KiOR Virent Amyris GEVO Byogy ARA SASOL Plant/Animal Oils switchgrass switchgrass sugarcane Sugar corn stover corn stover forest waste forest waste Lignocellulose Lignocellulose Coal Certification-Qualification: Future Fuels Other Catalytic Conversion Processes Catalytic Hydrothermolysis (CH) Hydrotreated Depolymerized Cellulosic Jet (Pyrolysis) (HDCJ) Direct Sugar to HC’s (DSHC) Alcohol to Jet (ATJ) FT-SKA

18. Bi-Annual General Meeting • CAAFI Bi-Annual General Meeting -- Jan 28-29, 2014

19. Thank You Nate Brown Alternative Jet Fuel Project Manager FAA Office of Environment & Energy Tel: 202-493-4427 Email: Nathan.Brown@faa.gov