US jet fuel market wary of potential biofuel

15 January 2008 22:50  [Source: ICIS news]

HOUSTON (ICIS news)--The US jet fuel market has a wait-and-see attitude regarding biofuel blends despite an announcement by Virgin Atlantic airlines that it will test biofuel in a February flight, a market observer said on Tuesday.

A Boeing 747-400 will fly from London to Amsterdam in about one hour and 20 minutes, using 20% biofuel and 80% conventional jet fuel, Virgin Atlantic said on Monday.

The biofuel to be used in the Virgin Atlantic flight has not been specified.

Cal Hodge, president of energy consulting firm A 2nd Opinion, said at current market rates for petroleum, using biofuels to add to jet fuel would just add to its cost. He added he considered the Virgin flight to be a “PR thing”.

“Without knowing exactly what the biofuel is, I can’t say whether or not it will be suitable,” Hodge said.

With an unidentified blendstock, issues remain regarding energy yield and sustainability with using an alternative to jet fuel.

“It looks great, but there are stability and temperature issues” with using an untested jet fuel-blend, Hodge says.

“We don’t blend our jet fuel, and we don’t plan to do it in the foreseeable future,” a Citgo aviation fuel trader said.

Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels.

By: Steven McGinn
+1 713 525 2653

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