  {"id":8254,"date":"2016-11-03T00:14:06","date_gmt":"2016-11-03T04:14:06","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/could-algae-fuel-your-next-flight-boeing-tests-biofuels-potential\/"},"modified":"2016-11-03T08:05:16","modified_gmt":"2016-11-03T12:05:16","slug":"could-algae-fuel-your-next-flight-boeing-tests-biofuels-potential","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/could-algae-fuel-your-next-flight-boeing-tests-biofuels-potential\/","title":{"rendered":"Could Algae Fuel Your Next Flight?: Boeing Tests Biofuel\u2019s Potential"},"content":{"rendered":"<p>Your cross-country commute could become more sustainable in the next five years. Since the Kyoto Protocol took effect in 2005, the transportation sector has been adopting new standards in order to reduce greenhouse gas emissions, the key cause of climate change. However, the airline industry has lagged behind. Aircrafts contribute to 2% of all the world\u2019s carbon emissions and this number is expected to increase as the industry grows.<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> A new regulation introduced February 8, 2016 by the UN\u2019s International Civil Aviation Organization (ICAO) proposed the first standards for carbon dioxide emissions for aircraft worldwide. According to the White House, if adopted, these regulations would \u201creduce carbon emissions by 650 million tons between 2020 and 2040, equivalent to removing 140 million cars from the road for a year.\u201d<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a> In order to reduce carbon emissions, some airlines have been experimenting with using various forms of biofuel which can reduce emissions by 50%-80%. Biofuel is attractive because it comes from a variety of sources and can be combined with conventional fuel. Boeing has been on the forefront of this movement, funding research on different forms of biofuel in six locations around the world. In 2011, United Airlines was the first commercial flight to use 40% biofuel made from algae. That same year, Alaska Airlines also began to experiment with biofuel made from cooking oil.<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> In January of 2016, Sea-Tac, in partnership with Boeing and Alaska Airlines, became the first U.S. airport to lay out a long-term roadmap for using biofuel in a cost-effective and efficient manner. Their goal is to incorporate biofuel into all flight operations by 2020.<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a><\/p>\n<p><em>Headwinds <\/em><\/p>\n<p>Despite the promise biofuel holds for the airline industry, the supply chain is not yet set-up to support the industry\u2019s demand. As of 2016, the industry only had enough factories to produce 100 million gallons of fuel which is less than 0.1% of the total amount of fuel airlines consume each year.<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a> The main cause of this shortfall is record-low investments in the industry. Producing biofuel at scale requires tremendous capital expenditures in plants and new technologies. Several companies including Boeing and United Airlines have invested in new biofuel refineries in anticipation of future needs.<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a> However, to date, airlines\u2019 incipient demand has not been enough to fuel major investments from those outside the industry. If the UN\u2019s ICAO proposal passes, there will be additional pressure on airlines to begin sourcing alternative sources of fuel which could draw in additional investors.<\/p>\n<figure id=\"attachment_8304\" aria-describedby=\"caption-attachment-8304\" style=\"width: 422px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Money-Slump.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8304\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Money-Slump-300x147.png\" alt=\"Source: Bloomberg\" width=\"422\" height=\"207\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Money-Slump-300x147.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Money-Slump-768x375.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Money-Slump-1024x500.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Money-Slump-600x293.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Money-Slump.png 1200w\" sizes=\"auto, (max-width: 422px) 100vw, 422px\" \/><\/a><figcaption id=\"caption-attachment-8304\" class=\"wp-caption-text\">Exhibit 1: Biofuel investment over the past decade. Source: Bloomberg New Energy Finance<\/figcaption><\/figure>\n<p><em>Ready to Take Flight?<\/em><\/p>\n<p>Due to the variety of sources of biofuel, there is potential to establish supply chains around airports using biofuels that are indigenous to that region.<a href=\"#_ftn7\" name=\"_ftnref7\">[7]<\/a> For example, Boeing has partnered with Etihad Airways near Abu Dhabi International Airport to cultivate Salicornia, a plant that can grow in salt-water, which has the potential to produce biofuel.<a href=\"#_ftn8\" name=\"_ftnref8\">[8]<\/a> Tapping into regional biofuel producers could be a boon for local economies. However, in order for biofuel to become a viable alternative source of energy within the airline industry there needs to be a coordinated effort between the public and private sector. Boeing, along with airlines including United and Alaskan, have been spearheading this initiative. In addition to their research initiatives, Boeing as an industry leader should lobby the UN ICAO, the FAA and the U.S. Environmental Protection Agency to hasten the timeline for other airlines to integrate biofuel into their operations in significant quantities. They should also launch a public relations campaign around the potential of biofuel to encourage investment outside the industry. Biofuel has the potential to create a more sustainable airline industry, it just needs some thrust to get off the ground.<\/p>\n<p>(Word Count: 787)<\/p>\n<p>For more on the salicornia plant:\u00a0<a href=\"http:\/\/www.boeing.com\/features\/2016\/03\/bca-seawater-energy-03-16.page\">http:\/\/www.boeing.com\/features\/2016\/03\/bca-seawater-energy-03-16.page<\/a><\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Harvey, Chelsea. &#8220;United Airlines Is Flying on Biofuels. Here\u2019s Why That\u2019s a Really Big Deal.&#8221;\u00a0<em>Washington Post<\/em>. The Washington Post, 11 Mar. 2016. Web. 01 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> Mooney, Chris. &#8220;U.N. Panel Proposes Historic Cuts to Aircraft Emissions \u2014 but Environmentalists Say It\u2019s Not Enough.&#8221;\u00a0<em>Washington Post<\/em>. The Washington Post, 8 Feb. 2016. Web. 01 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> Nicas, Jack. &#8220;Airlines Test Biofuels but Costs Are Hurdle.&#8221;\u00a0<em>WSJ<\/em>. Wsj.com, 07 Nov. 2011. Web. 01 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> &#8220;Boeing; Alaska Airlines; Port of Seattle; Port of Seattle Partners with Alaska Airlines and Boeing on Plan to Supply Sustainable Aviation Biofuel at Sea-Tac Airport.&#8221; <em>Journal of Transportation<\/em>, 2016., pp. 112http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/docview\/1751256611?accountid=11311.<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> Ryan, Joe. &#8220;Airline Low-Carbon Future Needs Fuel Nobody Makes in Volume.&#8221;\u00a0<em>Bloomberg.com<\/em>. Bloomberg, 3 Oct. 2016. Web. 01 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> Sims, B. (2015, 01). Ready For Take Off.<em>\u00a0Fuel,\u00a0<\/em>, 60-66. Retrieved from http:\/\/search.proquest.com.ezp-prod1.hul.harvard.edu\/docview\/1645903563?accountid=11311<\/p>\n<p><a href=\"#_ftnref7\" name=\"_ftn7\">[7]<\/a> Nicas, Jack. &#8220;Airlines Test Biofuels but Costs Are Hurdle.&#8221;\u00a0<em>WSJ<\/em>. Wsj.com, 07 Nov. 2011. Web. 01 Nov. 2016.<\/p>\n<p><a href=\"#_ftnref8\" name=\"_ftn8\">[8]<\/a> Flick, John.<em> &#8220;Super Plants&#8221; Could Lead to Biofuel Breakthrough<\/em>. Boeing, 9 Mar. 2016. Web. 02 Nov. 2016.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Biofuel could reduce airlines&#039; carbon emissions, but does it have enough thrust to get off the ground?<\/p>\n","protected":false},"author":2042,"featured_media":8258,"comment_status":"open","ping_status":"closed","template":"","categories":[107,1286,1287,1288,1218],"class_list":["post-8254","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-airline","category-biofuel","category-boeing","category-carbon-emissions","category-climate-change"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Could Algae Fuel Your Next Flight?: Boeing Tests Biofuel\u2019s Potential - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/could-algae-fuel-your-next-flight-boeing-tests-biofuels-potential\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Could Algae Fuel Your Next Flight?: Boeing Tests Biofuel\u2019s Potential - 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