Commercial Airplanes

Aviation Biofuel: Recent breakthroughs and long term prospects

Presented by Michael Lakeman, Ph.D.Environmental and Aviation Policy, Boeing Commercial Airplanes

April 2014

Copyright © 2010 Boeing. All rights reserved.

One Boeing, One Planet

“By improving the environmental performance of our products and operations, we ensure the vitality of Boeing as well as our customers, our industry and our communities worldwide. Together, we will continue to build a better planet.” Jim McNerney

Chairman and CEOThe Boeing Company

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Copyright © 2010 Boeing. All rights reserved.Copyright © 2013 Boeing. All rights reserved.

By 2032, airlines will need more than 35,000 new airplanes valued at $4.8 trillion

Market value: $4.8T2013 - 2032

0

500

1,000

1,500

2,000

2,500

Regionaljets2%

Single-aisle47%

Smallwide-body

23%

Largewide-body

6%

Medium wide-body

22%

$80B

$2,290B

$1,100B

$280B

$1,090B

New airplane deliveries by region2013–2032

37%

21%

7%8%

3%3%

21%

35,280

Region AirplanesAsia Pacific 12,820Europe 7,460North America 7,250Middle East 2,610Latin America 2,900C.I.S. 1,170Africa 1,060

World Total 35,280

Copyright © 2010 Boeing. All rights reserved.

3% of total

0

10,000

20,000

30,000

40,000

50,000

60,000

Emissions by sector, 2000-2030Millions tons CO2 equivalent/year

Power

Industrial

Agricultural and waste

Buildings

Forestry

Other transport

Air

2030202520202015201020052000

2% of total

Global CO2 Emissions

Small but growing share of emissionsSource: IPCC

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Boeing’s Role Core activities

Support and

Advocacy

Feedstock and Pathway

R&D

Fuels approval

Boeing’s Role and Actions

Ultimate goal is to catalyze a vibrant commercial market

Act as industry catalyst to accelerate

commercialization

Assure industrygrowth

Protect our environment

Address customer’s top cost

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Copyright © 2010 Boeing. All rights reserved.

Boeing’s Global Biofuel ProgramKey Activities

Working across Boeing and the industry to drive commercialization

BIOJet Abu DhabiLaunched

Amyris – GOL MOU on Aviation Biofuels

Indonesia Biofuels Mandate

South Africa BiofuelsCollaboration / MOU

Australia Biofuel Efforts

GOL BiofuelFlights

Green DieselCommercialization

RFS2 IncludesJet Fuel

RSB SE AsiaStudy

UAE R&D Center

NorthwestRoadmap

andPartnerships

Gutter OilCollaboration

Midwest BiofuelsRoadmap

Brazil BiofuelsRoadmap Launched

SAFUG ILUCPosition Biofuel flights

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Broad Demand for Aviation Biofuel

Demand is not a constraint

Test Flights2008 - 2011

Early commercial flights2011-2012

Ongoing operation2013+

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Technically viable In demand Sufficient supply

ASTM and Def Stan approved

High quality standard

Airline support

In commercial use

Strong US Military Demand

Refinery capacity small

Price premium

Limited sustainable feedstock

State of Aviation Biofuel Industry

Supply is the main challenge

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The continuing challenge

So what’s driving the $30?

$30The price premium of aviation biofuel used for demo flights

$0.10The price premium that would

eliminate 2012 airline profitability

Notes: Prices per gallon. $0.10 based on long term net margins of 1% and assumption of 1/3 of costs being fuel.9

Scale?

Price?

Scale?

Price?10

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Global Green Diesel Production

Neste Oil594 M Gallons

Singapore, Finland,Netherlands

Diamond Green Diesel137 M Gallons

Norco, LA

Dynamic Fuels75 M GallonsGeismar, LA

Eni100 M Gallons

Italy

Advanced biofuels, commercialized

Emerald Biofuels85 M Gallons

LA

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Green Diesel is a drop-in fuel

Feed-stock

RefiningGreenDiesel

Diesel Markets

O

O

Biodiesel Green Diesel

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HEFA is a premium fuel

Feed-stock

RefiningGreenDiesel

Distillation

GreenDiesel

HEFA Blend

Jet-A(min 50%)

Diesel market

Aviationmarket

Green Diesel HEFA

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The breakthrough

Green diesel is similar enough chemically to be blended directly into jet fuel

Dr Jim Kinder, Boeing Technical Fellow

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Drop-in aviation biofuel, without the premium

Feed-stock

RefiningGreenDiesel

Distillation

GreenDiesel

HEFA Blend

Jet-A(min 50%)

Diesel market

Aviationmarket

BlendJet-A

Aviationmarket

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Significant impact expected

35

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$10

$30

$20

$0

$40

$/gal

Green diesel (net incentives)

Green diesel (no incentives)

Airline Purchases of HEFA

Competitive price

51510

200

400

600

800

1,000

2010

429

2009

102

2008

2007

M Gal

1% of globaljet fuel

2014

F

935

2013

806

2012

669

2011

669

Instant scale

Sometimes, the breakthrough is not in technology16

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The SBRC Sustainable Biomass Research Consortium

Copyright © 2010 Boeing. All rights reserved.

Why is SBRC research important?

Our concept for biofuel production could be applied to the UAE and many other regions of the world

Source: USGS

97% of the Earth’s water is in the oceans

About 20% of the Earth’s land mass is desert ~25.5 million km2

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The ISEASThe flagship project of the SBRC is the Integrated Seawater Energy and Agriculture System

Copyright © 2010 Boeing. All rights reserved.

Moving From Dreams to Reality

Great progress. Superior fuel. Early in the journey.

Aviation Biofuel Progress ASTM approval for commercial use Organized demand Favorable policy developments Commercial flights continue

Next Steps ASTM approval of green diesel blending Emphasis on policy continuity Research – expanded feedstocks/pathways Innovation – supply chain and commercial

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Questions?