Biofuel cost could meet convention jet fuel by 2018

The cost of biofuel could be similar to that of conventional jet fuel by 2018, according to forecasts from Bloomberg New Energy Finance, which opens up the potential of biofuels to be competitive in aviation by 2020.

However, the study also suggests that airlines may only use a modest proportion of biofuels (two per cent or less) in their fuel mix in the next few years. This is four per cent behind the International Air Transport Association's indication of a six per cent mix by 2020.

Europe's recently introduced carbon emission schemes is one of many pieces of legislation that has pushed airliners into action over alternative fuels. However, the EU attempt has been met with much criticism around the world, with China, United States, India, Russia, Japan and more than 20 other countries are scrambling to protect their airlines from EU-imposed carbon emissions charges.

The first types of biofuels that are likely to become properly competitive are biofuels made from the hydro-treatment of non-food vegetable oils like jatropha or camelina, or from the pyrolysis of cellulosic feedstocks.

Posted by Lauren Steadman