Download your FREE Renewable Energy Investments Report here
Barclays Plc (BARC), the U.K.’s second- largest lender by assets, created a 100 million-pound ($163 million) fund to support renewable energy farm projects.
The fund was developed with the National Farmers Union after a Barclays survey found that 37 percent of the U.K.’s 200,000 farmers are seeking to cut their energy bills and generate income using renewable energy, the London-based bank said today in a statement.
The U.K. reduced the incentives it pays to developers of large solar projects this year and is shifting its focus to funding smaller residential and commercial projects. The government aims to generate 15 percent of the country’s energy from renewable sources by 2020.
Download your FREE Renewable Energy Investments Report here
Farmers “are looking forward to many further years of lower energy costs and a potentially new income as they sell energy back to the grid,” Travers Clarke-Walker, a product and marketing director for Barclays, said in the statement.
The average size of solar, wind and hydroelectric projects likely to receive financing through the fund will be 44 kilowatts, Barclays spokesman Michael O’Toole said in a telephone interview. The bank expects the costs of wind and solar projects to fall by half in the next three to five years and may increase its investments in renewable power. It bought Aug. 11 an 85 percent stake in a 26-megawatt wind farm in eastern England.
Barclays surveyed 300 dairy farmers in England, Scotland and Wales this month and 60 percent said they expect renewable energy to generate revenue for their businesses, according to the statement.
Download your FREE Renewable Energy Investments Report here
Some are already doing so. Renewable energy “looked like a good investment because of government feed-in tariffs and we wanted to offset some of our business costs,” Andrew Hawkey, 58, a third-generation farmer from Cornwall, said in an interview.
Barclays financed a 250-kilowatt ground-mounted solar farm that’s in operation now on Hawkey’s land near Wadebridge, and he wants to borrow 120,000 pounds to add another 50 kilowatts of capacity. He said the solar panels may cut his power bills by about 30 percent.
Download your FREE Renewable Energy Investments Report here
Source: Bloomberg
DGC Asset Management Limited provide Investors with the opportunity to engage in strategic mid term and long term asset-backed investments within the Agricultural, Timber and Renewable Energy sectors.
Showing posts with label renewable energy investment. Show all posts
Showing posts with label renewable energy investment. Show all posts
Tuesday, 30 August 2011
Friday, 17 June 2011
USDA makes $20 million bio-mass investment
JEFFERSON CITY, Mo. – The U.S. Department of Agriculture has announced new subsidies to encourage Missouri farmers to grow bio-mass crops.
On Wednesday, Agriculture Secretary Tom Vilsack unveiled two new Biomass Crop Assistance Programs for the areas near Columbia and Aurora. The plan would subsidize eligible farmers up to 75 percent of the cost for seeding giant miscanthus, a hybrid grass which is converted into energy for heat, power and liquid bio-fuels.
“Our hope is that they will convert this crop into energy and at the same time also produce needed jobs in the areas surrounding Columbia and Aurora,” Vilsack said.
The plan applies to a combined 820,000 acres around both cities. Both towns already host bio-mass conversion facilities. The USDA estimates that these projects and the related conversion plants would generate about $50 million per year and create nearly 4,000 jobs in Missouri by 2014.
The projects are part of a four-state, $20 million investment by the USDA for increasing biomass crop production, which Vilsack said was an integral part of the President’s plan to increase renewable energy by 15 percent by the start of the next decade.
Sen. Roy Blunt joined the agriculture secretary in making the announcement. He praised the new program, saying it would help encourage farmers to take advantage of land that would otherwise go unused.
Miscanthus is a sterile hybrid warm-season grass that is cultivated through planting of rhizomes in open fields and is cable of producing up to 12 tons of crop per acre. Blunt said the crop requires little maintenance after planting and would grow in lower quality soil that is not suitable for food crops.
“It will grow on land that is not necessarily the best farmland for anything else,” he said.
Vilsack said part of the reason for the bio-mass investment has been the growing movement among states like Missouri to place new restrictions on utility companies, requiring them to obtain a certain amount of their energy portfolio from renewable sources.
“We see this program as a way of partnering with the states and with utility companies to meet those portfolio standards,” the secretary said.
Source: http://missouri-news.org/featured/usda-makes-20-million-bio-mass-investment-in-missouri-other-states/6050
On Wednesday, Agriculture Secretary Tom Vilsack unveiled two new Biomass Crop Assistance Programs for the areas near Columbia and Aurora. The plan would subsidize eligible farmers up to 75 percent of the cost for seeding giant miscanthus, a hybrid grass which is converted into energy for heat, power and liquid bio-fuels.
“Our hope is that they will convert this crop into energy and at the same time also produce needed jobs in the areas surrounding Columbia and Aurora,” Vilsack said.
The plan applies to a combined 820,000 acres around both cities. Both towns already host bio-mass conversion facilities. The USDA estimates that these projects and the related conversion plants would generate about $50 million per year and create nearly 4,000 jobs in Missouri by 2014.
The projects are part of a four-state, $20 million investment by the USDA for increasing biomass crop production, which Vilsack said was an integral part of the President’s plan to increase renewable energy by 15 percent by the start of the next decade.
Sen. Roy Blunt joined the agriculture secretary in making the announcement. He praised the new program, saying it would help encourage farmers to take advantage of land that would otherwise go unused.
Miscanthus is a sterile hybrid warm-season grass that is cultivated through planting of rhizomes in open fields and is cable of producing up to 12 tons of crop per acre. Blunt said the crop requires little maintenance after planting and would grow in lower quality soil that is not suitable for food crops.
“It will grow on land that is not necessarily the best farmland for anything else,” he said.
Vilsack said part of the reason for the bio-mass investment has been the growing movement among states like Missouri to place new restrictions on utility companies, requiring them to obtain a certain amount of their energy portfolio from renewable sources.
“We see this program as a way of partnering with the states and with utility companies to meet those portfolio standards,” the secretary said.
Source: http://missouri-news.org/featured/usda-makes-20-million-bio-mass-investment-in-missouri-other-states/6050
Wednesday, 8 June 2011
India to be third largest investment destination for renewable energy investment this year: KPMG
NEW DELHI: India is the third most favoured destination globally for investments in the renewable energy sector and will also be a major source of new entrants into the sector, behind the US and China, according to a survey released on Wednesday by global consulting firm KPMG.
The top five targeted countries for renewable energy investment are the US, selected by 53 percent of respondents, China (38 per cent), India (35 per cent) Germany (34 per cent) and the UK (33 per cent)," according to KPMG's annual survey of global renewable energy mergers and acquisitions titled Green Power 2011.
"Some 78 per cent of all survey respondents expect new players to come from China, followed by North America (59 per cent), India (42 per cent) and Western Europe (41 per cent)," it added.
The Indian renewable energy market has become increasingly dynamic in recent years as a result of strong natural resources, greater accommodation to international investments and a variety of government incentives.
"In India, we see increasing trends towards sustained M&A activity in the renewable space, specifically wind, small hydro, and solar sub-segments going forward. With clear thrust on this space, and a supportive policy and regulatory environment, we see this activity picking up slowly but steadily," said Richard Rekhy , Head of Advisory, KPMG in India.
"The deal sizes, however, may be smaller (as compared to global benchmarks) to start with," he added.
The government is providing an array of incentives to firms in the renewable energy sector including setting of renewable energy generating standards for utilities, creating a structure for trading renewable energy certificates.
On the tax incentives front, the government has allowed project developers to take 80 per cent accelerated depreciation on assets deployed in renewable energy generation and given a ten year tax holiday to the sector and concessional duties for imports.
In the Indian renewable energy sector, solar and wind energy will be the driving force for overseas investments and acquisitions. The Indian wind market has experienced rapid growth in recent months.
"Some $586 million of project financing flowed into Indian onshore wind farms in the first quarter of 2011, only 37 per cent below the $934 million that was allocated to the sector throughout 2010," said the survey.
Although a majority of the respondents picked the US as a favoured market for solar energy, about a third said they would seek deals in other countries like India.
One of the reasons why the Indian solar sector is increasingly attractive to acquirers is the plethora of incentives that have been announced to support the sector's development.
"With India it is a combination of factors. There is a portfolio standard on a state by state basis. Developers have the ability to get power purchase agreements due to utility obligations. Then there are the Generation Based Incentive (GBI) and tax depreciation incentives," said Siobhan Smyth, head of renewables at HSBC.
"You are looking at 15-20 per cent returns depending on the state you look at and the type of assets you are buying."
Source: http://economictimes.indiatimes.com/news/news-by-industry/energy/india-to-be-third-largest-investment-destination-for-renewables-this-year-kpmg/articleshow/8773190.cms
The top five targeted countries for renewable energy investment are the US, selected by 53 percent of respondents, China (38 per cent), India (35 per cent) Germany (34 per cent) and the UK (33 per cent)," according to KPMG's annual survey of global renewable energy mergers and acquisitions titled Green Power 2011.
"Some 78 per cent of all survey respondents expect new players to come from China, followed by North America (59 per cent), India (42 per cent) and Western Europe (41 per cent)," it added.
The Indian renewable energy market has become increasingly dynamic in recent years as a result of strong natural resources, greater accommodation to international investments and a variety of government incentives.
"In India, we see increasing trends towards sustained M&A activity in the renewable space, specifically wind, small hydro, and solar sub-segments going forward. With clear thrust on this space, and a supportive policy and regulatory environment, we see this activity picking up slowly but steadily," said Richard Rekhy , Head of Advisory, KPMG in India.
"The deal sizes, however, may be smaller (as compared to global benchmarks) to start with," he added.
The government is providing an array of incentives to firms in the renewable energy sector including setting of renewable energy generating standards for utilities, creating a structure for trading renewable energy certificates.
On the tax incentives front, the government has allowed project developers to take 80 per cent accelerated depreciation on assets deployed in renewable energy generation and given a ten year tax holiday to the sector and concessional duties for imports.
In the Indian renewable energy sector, solar and wind energy will be the driving force for overseas investments and acquisitions. The Indian wind market has experienced rapid growth in recent months.
"Some $586 million of project financing flowed into Indian onshore wind farms in the first quarter of 2011, only 37 per cent below the $934 million that was allocated to the sector throughout 2010," said the survey.
Although a majority of the respondents picked the US as a favoured market for solar energy, about a third said they would seek deals in other countries like India.
One of the reasons why the Indian solar sector is increasingly attractive to acquirers is the plethora of incentives that have been announced to support the sector's development.
"With India it is a combination of factors. There is a portfolio standard on a state by state basis. Developers have the ability to get power purchase agreements due to utility obligations. Then there are the Generation Based Incentive (GBI) and tax depreciation incentives," said Siobhan Smyth, head of renewables at HSBC.
"You are looking at 15-20 per cent returns depending on the state you look at and the type of assets you are buying."
Source: http://economictimes.indiatimes.com/news/news-by-industry/energy/india-to-be-third-largest-investment-destination-for-renewables-this-year-kpmg/articleshow/8773190.cms
Bloomberg report says biofuels attractive to investors
Private financial support for technology acceleration continues to be important, and certain technologies are becoming clear favorites for investors, according to a recent Bloomberg New Energy Finance analysis of financial investments made in biofuels projects since 2004.
According to the analysis, venture capitalists and private equity firms have provided 60 percent, or $2.7 billion, of the total private investments made in next-generation biofuels since 2004. Of those investments, biochemical conversion technologies received 66 percent of the action while thermochemical technologies received 30 percent. Sixty percent of the investments made in next-generation biofuels through public markets since 2004 have also been directed toward biochemical technologies. Additionally, the analysis noted that companies backed by a well-known strategic partner appear to receive greater interest from the public markets. The analysis noted that three of the most conspicuous public offerings in recent years have been from companies developing biochemical processes that also have prominent partners, such as oil companies or pharmaceutical firms.
Government agencies also seem to prefer biochemical pathways. Since 2004, those technologies have received the majority of dispersed federal funds, according to Bloomberg’s analysis. Enzymatic hydrolysis projects have received 30 percent of the government’s next-gen biofuels funds, followed by acid hydrolysis projects, which received 21 percent of the dispersed funds. The analysts noted in their report, however, that while the government has announced $3.1 billion in investments to the industry since 2004, less than half of that amount has actually been received by awardees. This has negatively impacted the commercialization of next-generation biofuel technologies. “The clear disparity between the ‘announcement’ and ‘disbursement’ of funds by the DOE and USDA - particularly of loan guarantees - illustrates the inefficacy of the government’s fractional payout scheme,” the analysis noted.
“Technologies are not achieving the covenants set by the lending agencies at the expected pace. Consequently, project developers do not have access to the totality of the funds committed to their projects. As a result, technological developments take longer, forcing projects to seek additional funding from the private sector, which has been near impossible during the financial recession of the past 30 months.” On a positive note, the analysts believe the USDA’s announcement earlier this year to provide $460 million through its loan guarantee program could help to alleviate the bottleneck, if it is able to disburse funds in a more timely fashion.
Bloomberg analysts attributed greater interest in biochemical conversion processes to the fact that those technologies can be proven at a smaller scale than other technologies, such as thermochemical processes. Further, the analysts found that enzymatic hydrolysis appears to be the most attractive biochemical process, likely because it provides the ability to use coproducts produced from the process to generate heat and power and appears to have greater energy input-output benefits when compared with other technologies. The analysts noted, however that international oil companies are particularly well-suited to invest in thermochemical processes. And while most oil companies are publicly traded, many corporate investment deals are not made public, so it is possible that a greater amount of financial support has been given to thermochemical pathways than is illustrated by the analysis.
Source: http://www.ethanolproducer.com/articles/7829/bloomberg-report-says-biochemical-pathway-attractive-to-investors
According to the analysis, venture capitalists and private equity firms have provided 60 percent, or $2.7 billion, of the total private investments made in next-generation biofuels since 2004. Of those investments, biochemical conversion technologies received 66 percent of the action while thermochemical technologies received 30 percent. Sixty percent of the investments made in next-generation biofuels through public markets since 2004 have also been directed toward biochemical technologies. Additionally, the analysis noted that companies backed by a well-known strategic partner appear to receive greater interest from the public markets. The analysis noted that three of the most conspicuous public offerings in recent years have been from companies developing biochemical processes that also have prominent partners, such as oil companies or pharmaceutical firms.
Government agencies also seem to prefer biochemical pathways. Since 2004, those technologies have received the majority of dispersed federal funds, according to Bloomberg’s analysis. Enzymatic hydrolysis projects have received 30 percent of the government’s next-gen biofuels funds, followed by acid hydrolysis projects, which received 21 percent of the dispersed funds. The analysts noted in their report, however, that while the government has announced $3.1 billion in investments to the industry since 2004, less than half of that amount has actually been received by awardees. This has negatively impacted the commercialization of next-generation biofuel technologies. “The clear disparity between the ‘announcement’ and ‘disbursement’ of funds by the DOE and USDA - particularly of loan guarantees - illustrates the inefficacy of the government’s fractional payout scheme,” the analysis noted.
“Technologies are not achieving the covenants set by the lending agencies at the expected pace. Consequently, project developers do not have access to the totality of the funds committed to their projects. As a result, technological developments take longer, forcing projects to seek additional funding from the private sector, which has been near impossible during the financial recession of the past 30 months.” On a positive note, the analysts believe the USDA’s announcement earlier this year to provide $460 million through its loan guarantee program could help to alleviate the bottleneck, if it is able to disburse funds in a more timely fashion.
Bloomberg analysts attributed greater interest in biochemical conversion processes to the fact that those technologies can be proven at a smaller scale than other technologies, such as thermochemical processes. Further, the analysts found that enzymatic hydrolysis appears to be the most attractive biochemical process, likely because it provides the ability to use coproducts produced from the process to generate heat and power and appears to have greater energy input-output benefits when compared with other technologies. The analysts noted, however that international oil companies are particularly well-suited to invest in thermochemical processes. And while most oil companies are publicly traded, many corporate investment deals are not made public, so it is possible that a greater amount of financial support has been given to thermochemical pathways than is illustrated by the analysis.
Source: http://www.ethanolproducer.com/articles/7829/bloomberg-report-says-biochemical-pathway-attractive-to-investors
Thursday, 2 June 2011
Offshore wind marks the future of renewable energy in the UK
Offshore wind energy could play a key role in renewable energy in the UK - that's according to a panel of top energy sector experts.
Currently only 3% of energy consumed comes from renewables, but the government has a target of 15% by 2020.
Although the UK does not currently have an energy crisis, one of the experts, Ben Goldsmith, co-founder of clean technology investment firm WHEB Partners, said the government must "plan very rapidly to avoid one."
The panel also said skills shortages and lack of investment threaten to stop the sector in its tracks.
The experts say there needs to be a connection with schools and schoolchildren - the promoting of technology and science subjects will, in turn, lead to secure, long-term, well-paid jobs.
David Spencer-Percival, managing director of energy recruiters Spencer Ogden, said: "Anywhere between 80,000 to 100,000 jobs will be created by offshore wind alone - that’s before you even consider massive construction projects for nuclear energy."
So that’s our kids’ futures sorted. And, until they graduate, and the Renewable Heat Incentive (RHI) is in place, we can do our own energy saving work by making sure we use energy wisely around the home.
Source: Big Green Smile
Currently only 3% of energy consumed comes from renewables, but the government has a target of 15% by 2020.
Although the UK does not currently have an energy crisis, one of the experts, Ben Goldsmith, co-founder of clean technology investment firm WHEB Partners, said the government must "plan very rapidly to avoid one."
The panel also said skills shortages and lack of investment threaten to stop the sector in its tracks.
The experts say there needs to be a connection with schools and schoolchildren - the promoting of technology and science subjects will, in turn, lead to secure, long-term, well-paid jobs.
David Spencer-Percival, managing director of energy recruiters Spencer Ogden, said: "Anywhere between 80,000 to 100,000 jobs will be created by offshore wind alone - that’s before you even consider massive construction projects for nuclear energy."
So that’s our kids’ futures sorted. And, until they graduate, and the Renewable Heat Incentive (RHI) is in place, we can do our own energy saving work by making sure we use energy wisely around the home.
Source: Big Green Smile
BlackRock sees 'pivotal moment' in renewable energy investment
Recent events in Japan and the Middle East could create a pivotal moment for alternative energy, BlackRock's Robin Batchelor and Poppy Allonby have claimed
The pair, who run the group's New Energy investment trust, said there is a real and significant opportunity for renewable energy and energy efficiency to help offset any slowdown or reversal in nuclear power's renaissance.
"Recent events, both in Japan and the Middle East North Africa (Mena) region, have put energy policy and energy security back on the political agenda," they said in a joint market update.
"There now appears scope for renewed regulatory momentum in the sector and the trust is poised to benefit from this new reality with over 75 per cent of its investments exposed to energy efficiency and renewables."
With the sector out of favour for so long, they highlight many holdings trading on historically low earnings multiples, a fact emphasised by a recent spate of M&A.
EDF recently bid for EDF Energies Nouvelles for example, a subsidiary principally engaged in the development of renewable energy.
Meanwhile, Iberdrola Renovables, a top 10 holding for the trust, was also subject to a bid by its parent company Iberdrola in March.
A pick up in sector M&A underpins share prices and highlights the attractiveness of company valuations, according to the managers.
Mr Batchelor said the impact of the recent Japanese disaster has contributed to uncertainty over the future of nuclear power globally.
"Many countries that were about to commence their second phase of building nuclear power generators have now expressed concern over the safety of plants and stalled these plans," he added.
"This has most recently occurred in Italy, where they have decided to place their nuclear program on hold."
Several of the trust's holdings announced results in April, with Novozymes a key performer as it demonstrated strong growth of around 9 per cent (on a like-for-like basis).
Mr Batchelor said a key headwind in the short term has been the relative weakening of sterling, as the dollar strengthened 3.9 per cent over April.
"As the market began to stabilise following the Japanese earthquake, a number of oversold stocks in the nuclear and platinum markets regained much of their lost ground," he added.
Strong recoveries also came from companies such as Johnson Matthey, Umicore and Shaw Group, which all contributed well to performance.
"Growing concerns over the sustainability of the Chinese wind market led us to take profits in American Superconductor," said the managers.
"A recent trip to China also resulted in [a new] a position in a Chinese wind farm developer, which stands to benefit from the pricing pressures currently being seen in the market."
Source: FTAdvisor.com
The pair, who run the group's New Energy investment trust, said there is a real and significant opportunity for renewable energy and energy efficiency to help offset any slowdown or reversal in nuclear power's renaissance.
"Recent events, both in Japan and the Middle East North Africa (Mena) region, have put energy policy and energy security back on the political agenda," they said in a joint market update.
"There now appears scope for renewed regulatory momentum in the sector and the trust is poised to benefit from this new reality with over 75 per cent of its investments exposed to energy efficiency and renewables."
With the sector out of favour for so long, they highlight many holdings trading on historically low earnings multiples, a fact emphasised by a recent spate of M&A.
EDF recently bid for EDF Energies Nouvelles for example, a subsidiary principally engaged in the development of renewable energy.
Meanwhile, Iberdrola Renovables, a top 10 holding for the trust, was also subject to a bid by its parent company Iberdrola in March.
A pick up in sector M&A underpins share prices and highlights the attractiveness of company valuations, according to the managers.
Mr Batchelor said the impact of the recent Japanese disaster has contributed to uncertainty over the future of nuclear power globally.
"Many countries that were about to commence their second phase of building nuclear power generators have now expressed concern over the safety of plants and stalled these plans," he added.
"This has most recently occurred in Italy, where they have decided to place their nuclear program on hold."
Several of the trust's holdings announced results in April, with Novozymes a key performer as it demonstrated strong growth of around 9 per cent (on a like-for-like basis).
Mr Batchelor said a key headwind in the short term has been the relative weakening of sterling, as the dollar strengthened 3.9 per cent over April.
"As the market began to stabilise following the Japanese earthquake, a number of oversold stocks in the nuclear and platinum markets regained much of their lost ground," he added.
Strong recoveries also came from companies such as Johnson Matthey, Umicore and Shaw Group, which all contributed well to performance.
"Growing concerns over the sustainability of the Chinese wind market led us to take profits in American Superconductor," said the managers.
"A recent trip to China also resulted in [a new] a position in a Chinese wind farm developer, which stands to benefit from the pricing pressures currently being seen in the market."
Source: FTAdvisor.com
Thursday, 26 May 2011
Renewable Energy: U.S. Aviation Biofuels Industry a Go
Visit www.dgcassetmanagement.com for FREE investing guides for agriculture, renewable energy and timber
In 2010, the Sustainable Aviation Fuels Northwest (SAFN) was formed to determine how the Pacific Northwest could create a viable and robust biofuels industry with the goal of creating fuels for the aviation industry. Yesterday, a 10 month study conducted by Climate Solutions has determined that the Pacific Northwest has the diverse feedstock, fuel-delivery infrastructure and political will needed to achieve their goals. However, the report stressed that creating an aviation biofuels industry will depend upon securing early government policy support to prioritize the aviation industry in U.S. biofuels development.
Partners in the program include Boeing, Alaska Airlines, Portland International Airport, Seattle-Tacoma International Airport, Spokane International Airport and Washington State University.
“It is critical to the future of aviation that we develop a sustainable supply of aviation biofuels,” said Boeing Commercial Airplanes President and CEO Jim Albaugh during a press announcement. “Airlines are particularly vulnerable to oil price volatility, and the aviation community must address this issue to maintain economic growth and further mitigate the environmental impacts of our industry.”
Dr. John Gardner, vice president for advancement and external affairs at Washington State University noted that there were three goals of the report. The study aimed to verify what the sources of biomass would be; what the supply chain would be and the steps needed to make it happen; and what policies might be barriers.
To create a market for aviation biofuels, the study outlines an integrated approach recommending the use of diverse feedstock and technology pathways, including oilseeds, forest residues, solid waste and algae. In addition, the study outlines the long-term importance of securing aviation biofuels as a top government priority and using the aviation industry to drive growth in domestic production.
Bill Ayer, Alaska Air Group Chairman, noted that consumers care about the issue of high fuel costs and sustainable future fuels and the airlines are taking the issue seriously.
“Alaska Airlines has made significant strides in reducing its environmental impact by enhancing the efficiency of its operations, including using satellite-based flying technology and investing in the most fuel-efficient airplanes in their class – but efficiency is only part of the answer,” said Ayer. “In order for the aviation sector to continue its impressive record of fuel efficiency and emissions reduction while continuing to grow, it is important that a sustainable supply of aviation biofuels is developed.”
The Pacific Northwest is a great place to drive the initiative to aviation biofuels – Bill Bryan, Port of Seattle commission president, said that their airport is the most sustainable in America and challenged airports across the country to outdo them.
“Airports have been leaders for years in finding ways to reduce their environmental footprint, from clean fuel sources for taxis and shuttles to electrification of ground equipment and pre-conditioned air, but in order to take the next big step we have to address emissions from aircraft. We can’t get there without biofuels. It not only will help the sustainability of the Northwest but also the aviation industry,” concluded Bryan.
In 2010, the Sustainable Aviation Fuels Northwest (SAFN) was formed to determine how the Pacific Northwest could create a viable and robust biofuels industry with the goal of creating fuels for the aviation industry. Yesterday, a 10 month study conducted by Climate Solutions has determined that the Pacific Northwest has the diverse feedstock, fuel-delivery infrastructure and political will needed to achieve their goals. However, the report stressed that creating an aviation biofuels industry will depend upon securing early government policy support to prioritize the aviation industry in U.S. biofuels development.
Partners in the program include Boeing, Alaska Airlines, Portland International Airport, Seattle-Tacoma International Airport, Spokane International Airport and Washington State University.
“It is critical to the future of aviation that we develop a sustainable supply of aviation biofuels,” said Boeing Commercial Airplanes President and CEO Jim Albaugh during a press announcement. “Airlines are particularly vulnerable to oil price volatility, and the aviation community must address this issue to maintain economic growth and further mitigate the environmental impacts of our industry.”
Dr. John Gardner, vice president for advancement and external affairs at Washington State University noted that there were three goals of the report. The study aimed to verify what the sources of biomass would be; what the supply chain would be and the steps needed to make it happen; and what policies might be barriers.
To create a market for aviation biofuels, the study outlines an integrated approach recommending the use of diverse feedstock and technology pathways, including oilseeds, forest residues, solid waste and algae. In addition, the study outlines the long-term importance of securing aviation biofuels as a top government priority and using the aviation industry to drive growth in domestic production.
Bill Ayer, Alaska Air Group Chairman, noted that consumers care about the issue of high fuel costs and sustainable future fuels and the airlines are taking the issue seriously.
“Alaska Airlines has made significant strides in reducing its environmental impact by enhancing the efficiency of its operations, including using satellite-based flying technology and investing in the most fuel-efficient airplanes in their class – but efficiency is only part of the answer,” said Ayer. “In order for the aviation sector to continue its impressive record of fuel efficiency and emissions reduction while continuing to grow, it is important that a sustainable supply of aviation biofuels is developed.”
The Pacific Northwest is a great place to drive the initiative to aviation biofuels – Bill Bryan, Port of Seattle commission president, said that their airport is the most sustainable in America and challenged airports across the country to outdo them.
“Airports have been leaders for years in finding ways to reduce their environmental footprint, from clean fuel sources for taxis and shuttles to electrification of ground equipment and pre-conditioned air, but in order to take the next big step we have to address emissions from aircraft. We can’t get there without biofuels. It not only will help the sustainability of the Northwest but also the aviation industry,” concluded Bryan.
Subscribe to:
Posts (Atom)