The Airbus approach - ec.europa.eu · •Support clearance and qualification (safety and performance 1st). •Prepare favourable framework for sustainable JET A1 for long-term use

Srinivas Duvvuri

Director Strategy & International Cooperation India/South Asia

Airbus Group India Private Limited, Bangalore INDIA

New Delhi, 07 March 2018

Sustainable fuelsThe Airbus approach

February 2018 Airbus India

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Airbus GMF 2016: 4.5% growth p.aICAO total traffic

0

2

4

6

8

10

12

14

16

18

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Source: ICAO, Airbus GMF 2016

World annual traffic (trillion RPK)

Air traffic doubles every 15 years

Oil Crisis Gulf Crisis

Asia

Crisis

9/11

SARS

Financial

Crisis

x2x2

x2

4.5%2016-2035

February 2018 Airbus India

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19761996

2036

2016

Centre of gravity of global aviation traffic - moving to the east…

Source: DGCA

Indian

domestic

traffic-----------------------------------------------------------------------Growing at an avg.

rate of

20.17% year-on-year for

the past 37

months

Indian domestic air passenger traffic growth

7.77.5

7.9 7.9

8.7

8.0

8.5 8.48.2

8.79.0

9.69.58

8.7

9.0 9.1

10.17

9.57 9.57 9.69 9.58

10.45 10.49

11.2411.46

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Millio

ns

2016 2017 2018

CORSIA (global Carbon Offsetting and Reduction Scheme for International Aviation) has been agreed by 161 countries.

The challenges and the context

Aviation growth raises more and more environmental challenges…

Environment is no longer an option, the whole industry is committed at International Civil Aviation Organization /

Committee on Aviation Environment Protection (ICAO/CAEP) level

ICAO Aircraft CO2 Standard defined

… but the context is evolving

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Air traffic doubles every 15 years

Setting the scene

Aircraft will continue burning Jet-A1 fuel in the next decades.

Future technology developments such as hybrid electric propulsion

may decrease the demand for jet fuel in the long-term future.

Aviation faces two long term challenges for continued air traffic growth:

1. Energy supply: growing competition for oil products between sectors

2. Environmental impacts

Sustainable aviation fuels are jet fuels made from renewable and

alternative raw material in replacement of petroleum based fuels and

complying with sustainability criteria (land use, water footprint, etc.)

Sustainable fuels are a key pillar to reduce GHG emissions from aviation

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AIRBUS Sustainable Fuels Strategy & Priorities

Engagement with Airlines & States

Policies & Standards

Fuel Approval

Innovation and R&D

Strategic Streams Key Objectives

• Support our customers through demonstration projects

• Facilitate scale-up of low cost sustainable fuels through partnerships

• Advocacy : Promote Sustainable Fuel policy and standard development at a regional and global level in close collaboration with industry partners and associations

• Be capable of certifying, on time, all new drop-in sustainable fuel pathways through ASTM

• Secure our knowledge on future drop-in and non-drop-in sustainable fuels trends (Pathways, Feedstocks, Conversion Process & Actors)

• Anticipate and manage potential risks and opportunities based on the trends

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Aviation is a global industry

Airlines require that where ever they operate

they are able to uplift “affordable” clean dry on

specification fuel approved by the OEMs

Major airports supply fuel by hydrant systems so

can only supply one fuel type

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What is driving change?

Safety / Performance

Everyone

Economics ₹ € ₤ $

Airlines / Customers

Environment

Governments / Public

Safety & Performance:the baseline for any

change.

Economics: Fuel can represent in excess of

30% of an airlines operational costs. Any increase in fuel price

reflects on airline profitability.

Environment: national governments, local

authorities, public seeking lower environmental impact, CO2, NOx, particulate matter,

contrails, noise, etc.

Security: Governments promote development of indigenous fuel supplies

Security

Governments

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What is driving change?Safety & Performance:

Any solution must be compliant

Economics/Security:

countries wishing to exploit natural resources, (Qatar, South Africa), or ensure security of supply

(USA)

Environment:

ICAO, EU driving regulations on CO2,

(sustainable non-fossil fuels), local authorities

driving air quality (recued sulphur and aromatics),

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Aviation Sustainable Fuels… “As-Is”

Standards

Demand

Production

Economic

Model

Policy & Frameworks

ICAO CORSIA – ICAO/CAEP Alternative Fuels Task Force in place

EU REDII revision on going

Engagement of states for Aviation Sustainable Fuels still low

More “regular” flight campaigns

More ambitious collaborative projects from the industry community (i.e. Initiative Towards Sustainable Kerosene for Aviation (ITAKA), Collaborative effort by UC Berkeley, UC San Fransisco, Stanford University (BioHubs)

More Fuel pathways certified (5)

Life Cycle Assessment (LCA) Methodologies, (indirect Land Use Change (iLUC), sustainability, CORSIA-Monitoring Reporting Verification (MRV) under definition

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Aviation Sustainable Fuels… “To-Be”

Standards

Demand

Production

Economic Model

Policy & Frameworks

GMBM in place

Incentivisation frameworks for renewable energy

Sustainable Fuel Volumes available

Logistics (biohub), availability and competitive cost

Agreed and applied standards at States level

Governance avoiding risks on quality and traceability

Competitiveness by local initiatives in place

Biofuels considered at the right place to offset carbon emissions

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Sustainable Aviation Fuels: A collaborative approach with many stakeholders

Engagement

With Airlines & States

Policies, Standards and Communication

Fuel Approval

Innovation & R&D

Perfect Flight

Sustainability Study

Demo Flight

Flight

Sustainability Study - HEFA

Sustainability Study

Algae F easibility Study

Center of Excellence

R&T Algae oil

Flight & Certification

Feasibility Assessment

EU Commission

Biofuels

flightpath

Sustainability Study

Woody Biomass

A350 delivery Flights

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1999 SASOL

Secunda plant

Supplies up to

50% CTL Jet A1

to Johannesburg

airport

2008 1st GTL

Flight on a

commercial

aircraft

2010/2011

HEFA demonstration

flights

2010 1st 100% CTL

Jet A1 Commercial

flight

Sustainable Aviation Fuels: How is Airbus involved?

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Sustainable Aviation Fuels: How is Airbus involved?

• All CPA A350-900 deliveries from TLS to HKG with BioJet Fuel (22 Aircrafts

- 10% Farnesane)

• BioJet platform in operation since June

• New partners? China Airlines (2017-2018) – others to come

• Storage capacity of

pure Biojet = 50m3

• 10% blend done on

the site on a monthly

basis

• Aircraft Fuelling done

directly at the facility

• Next ?– More collaborative projects with Airlines

– Airbus and ATR Internal flights (Tests, Internal transport)

– Flights in Mobile (USA) and Finkenwerder (GE)

– French “Green Deal” for Sustainable Aviation Fuels promotion in France and EUPage

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Key Challenges and Way Forward

• AIRBUS is engaged to support the Industry objectives.

• Support clearance and qualification (safety and performance 1st).

• Prepare favourable framework for sustainable JET A1 for long-term use (ICAO/CAEP, Eligibility

(Life Cycle Assessment +Sustainability) & CORSIA Monitoring Reporting Verification).

• Actively stimulate the aviation sector by promoting initiatives and demonstrations to attract

investment (States/Countries’ plans – extended partnerships – Offtake agreements)

• Launch collaborative local opportunities to continue promoting sustainable JET A1 production

and use (more ambitious collaborative projects)

• Promote sustainable JET A1 and equalize competition on feedstock and facilities between the

road transport and aviation (more balanced mechanisms and policy)

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Thank you

Copyright mention

The challenge 1999:

No major fuel

specification changes for

over 40 years; SASOL

Coal To Liquid Fischer

Tropsch fuel approved

1999– 2009:

No major fuel changes

2009-2017:

5 new pathways,

3 incidental materials /

additives

2017 :

3-4 “New” Fuels & 4

New Additives per year!

SDA [BASF]

DEGAS A-1 [Nanovapor] FQS 1.5 Biocide

Chinese SDA

[Sinopec]

HiTEC Corrosion Inhibitor

F27 Thermal Stabiliser

[BASF] Chinese CI/LI [Sinopec]

New Additives

Q1 Q2 Q3 Q42017

HDO SAK [Virent] Green Diesel HEFA [Neste]

ATJ-SPK [LanzaTech] ATJ-SKA [Byogy]

CH RediJet

[ARA]

HDO SK [Virent]

ASTM Generic Synthetic Annex (5-10% blend)

New Fuels

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