Tag Archives: alternative
Airlines Push for Global Measures to Control Carbon Emissions
By CHRISTOPHER F. SCHUETZE Fabrice Coffrini/Agence France-Presse — Getty Images Geneva International Airport. Airline travel is thought to cause 2 percent to 3 percent of the world’s carbon emissions. Last week, airlines called on the aviation authorities to find a way to curb emissions after 2020.Despite the unpopularity of a European aviation carbon emission tax, the world’s airlines are ready to discuss global measures. The announcement , which calls on the International Civil Aviation Organization, the civilian sky’s U.N. regulating body, to adopt an across-the-board, market-based mechanism to offset emissions, was made during the International Air Transport Association’s 69 th annual meeting, in Cape Town. “We can give them a direction we want them to go,” said Tony Tyler, the head of the association, about the recommendations to the governing body in a video statement . The International Civil Aviation Organization hopes to steer governments away from a patchwork of national rules and toward a single, global, market-based mechanism. “Such a patchwork would be an administrative nightmare,” said Paul Steele, the association’s environmental director at a news conference . The industry group represents 240 of the world’s airlines, which operate 84 percent of all civilian flights. The association has called for environmental standards before, but this is the first time it has called for comprehensive binding regulations. Since 2010, the association has been in favor of a 1.5 percent annual increase in fuel efficiency from 2010 to 2020, with carbon neutral growth by 2020. By 2050, the association wants net emissions cut by 50 percent from 2005 levels. As Rendezvous reported last year , Europe and the rest of the world have been in disagreement over whether foreign carriers should take part in the European Emission Trading System when landing at European destinations. A European Union rule, in place since last year, would have taxed carbon emissions on flights terminating or originating in Europe, even for non-European airlines. Last summer, a group of non-European nations met in Washington to condemn such taxation. Then President Barack Obama disappointed environmentalists when he signed a bill into law that actually prohibits United States airlines from paying the tax when landing in Europe, in contravention of international law. Earlier this year, the European Union announced a “stopping of the clock” in its demand for non-European carriers to participate in its emission trading program. At the time, Connie Hedegaard, the E.U. commissioner for climate action, described the move as allowing the rest of world to catch up. The air association’s most recent announcement was welcomed in Brussels. “It is a very strong message that the airline industry seems ready to support a single global market-based measure to keep their emissions in check,” Ms. Hedegaard said in a statement sent to reporters last week. “The E.U. is ready,” she said. Airline travel is thought to cause 2 percent to 3 percent of the world’s carbon emissions. According to a National Geographic report , an average passenger airplane burns four liters, or a little more than a gallon, of jet fuel for each kilometer each a passenger flies. This number is already a 40 percent improvement over jet fuel efficiency in 2000. Though the number of flights may still be climbing (Rendezvous reported last year on the one billionth international arrival in 2012), new planes are becoming increasingly fuel-efficient. “This is a responsible industry. We are the only industry in the world that has set itself clear targets in terms of emission standards,” said Mr. Tyler, according to the video statement. Continue reading
United Airlines Signs 15m Gallon Biofuel Purchase Agreement
June 6, 2013 United Airlines will purchase 15 million gallons of biofuel from AltAir Fuels that will be used on flights departing from Los Angeles International Airport starting in 2014, the airline says. The companies expect AltAir Fuels’ renewable jet fuel to achieve at least a 50 percent reduction in greenhouse gas emissions on a lifecycle basis. According to the agreement, AltAir Fuels will retrofit part of an existing petroleum refinery to become a 30-million gallon, advanced biofuel refinery near Los Angeles, Calif. AltAir will produce low-carbon, renewable jet fuel and other renewable products at the refinery. United will buy 5 million gallons of biofuel per year over a three-year period with the option to purchase more. The companies say the biofuel price will be competitive with petroleum-based jet fuel. AltAir will use process technology developed by Honeywell’s UOP to retrofit the existing refinery near Los Angeles and says the facility will be the first refinery internationally to be capable of in-line production of both renewable jet and diesel fuels. The facility will convert nonedible natural oils and agricultural wastes into approximately 30 million gallons of low-carbon, advanced biofuels and chemicals per year. These advanced biofuels are drop-in replacements for petroleum-based fuel, requiring no modification to factory-standard engines or aircraft , with which they are fully compatible. United says it will support AltAir Fuels’ efforts to incorporate internationally recognized sustainability standards, such as those being developed by the Roundtable on Sustainable Biomaterials . In 2009, United Airlines became the first North American carrier to perform a two-engine aircraft flight demonstration using sustainable biofuels derived from algae and jatropha. United also operated the first flight by a North American commercial airline using synthetic fuel made from natural gas in 2010. A year later, United operated the first US commercial flight powered by advanced biofuels. Last summer, United, along with the Boeing Company, Honeywell’s UOP, the Chicago Department of Aviation and the Clean Energy Trust, launched the Midwest Aviation Sustainable Biofuels Initiative (MASBI). MASBI is an effort by more than 40 organizations across the aviation biofuels supply chain to accelerate the commercialization of advanced biofuels in the Midwest. United Airlines is also a signatory to the Sustainable Aviation Fuel Users Group , whose members represent approximately 32 percent of commercial aviation fuel demand. United signed a pledge to pursue the advancement of drop-in biofuels that achieve important sustainability criteria, work with leading organizations to achieve biofuel certification standards and take actions to enable commercial use of aviation biofuels. Continue reading
Trends In The Renewable Energy Landscape
June 6, 2013 By Gil Forer Gil Forer Global Leader, Global Cleantech Center, Ernst & Young A new era is dawning in the renewable energy industry. Energy demand, natural resource, technology costs, access to finance and global competitiveness are identified as the key influences for investors. According to the tenth anniversary edition of the Renewable Energy Country Attractiveness Index (RECAI), which was recently released by Ernst & Young, global annual clean energy investment totaled US$269b in 2012, representing a five-fold increase on 2004. The sector now competes for investment with more traditional energy sources, and new technologies — such as solar panels, biomass boilers and mini wind turbines — are enabling energy users to run their own small power plants, changing the way businesses and consumers think about energy. The renewable energy landscape today is truly global. From Japan and Southeast Asia to Africa and South America, renewable energy is a viable energy source that is gaining a solid and growing share in the energy mix. But, the renewables industry is facing growing pains. Not only is the future a place with less government support, but industry players also have to fight for market share across all corners of the globe and with some worrying signs of trade barriers emerging. For an industry that is still relatively new, this is a seriously challenging time; leaders need to be conversant in international business, conscious of global politics, and clever in innovating new business models and business relationships to win in an increasingly global competitive world. South America and Asia Pac continue to rise as Europe and the Middle East stall Our index sees the US regain the top spot, as high barriers to entry for external investors realign China into second place. However, growth prospects for the sector in China remain strong with continued GDP growth, increasing energy demand, and the ongoing strategic importance of the sector to the local economy providing solid foundations for the future. South America continues to grow in prominence, thanks in part to its growing energy demand. Chile’s project pipeline includes 300MW-400MW concentrated solar power (CSP) plants, while Peru has entered the index for the first time due to good resources and a strong investment climate. However, new policy measures and tender cancelations in Brazil are likely to temper the rapid growth seen in the region over the last 18 months. High levels of project activity and investment interest in Japan and Australia give the Asia Pacific region a stronger presence at the top of the index. Thailand also joins the index in this issue, boasting strong solar resource and a healthy project pipeline, as well as stable fiscal and regulatory support measures. In Europe, Romania became the latest to slash its subsidies, reinforcing the relatively somber mood in Eastern Europe as policy makers try to find the balance between growth and sustainability. A number of the Middle East and North Africa countries, including Egypt, Tunisia and the UAE, have fallen out of the top 40 due to a slow recovery from the Arab Spring and an absence of clear policy frameworks delaying capacity deployment. Transaction market – the continuing squeeze Recent deal activity in the sector has been characterized by incumbents and new entrants driving industry consolidation. There is also a strong appetite from Far East construction groups and original equipment manufacturers (OEMs) seeking development pipelines of solar and wind assets to provide a distribution channel for their products. Factors driving the levels of investment in renewable energy include divestment needs, market restructuring and the entry of new investors into the sector. Utilities and financial buyers are finding greater value in buying operational plants than investing in plant construction. The mismatch between project sponsors’ capital expenditure plans and the corporate capacity to finance this investment will continue to drive more asset disposals. Both financial investors and OEMs under pressure from overcapacity are likely to remain the most active buyers of operational assets and development assets respectively. Further consolidation can be expected in the supply chain. New markets are gaining momentum. Countries and corporations are increasing their focus on changing their energy mix to ensure it provides financial, reputational, operational and social benefits. We’re also seeing the development and implementation of national renewable energy program best practices. In summary, with the shift in the democratization of the energy sector and the increasing power of the customer, the future of renewable energy in the energy mix is bright. For more information about the report, including a discussion of our evolved methodology, please visit www.ey.com/recai . Gil Forer is global leader of the Global Cleantech Center for Ernst & Young. Continue reading
