Lufthansa to Test Biofuels on Passenger Flights

Lufthansa, Europe's second-largest airline, is planning to test biofuels on regular passenger flights as part of its efforts to reduce carbon-dioxide emissions and save on fuel purchases. The airline has partnered with Finnish petroleum refiner Neste Oil Oyj to power flights using kerosene derived from plant oils. The six-month test, set to begin in April, will use biofuel to power one engine on an Airbus A321 airliner flying between Hamburg and Frankfurt. The airline aims to use biofuels in its entire fleet by 2020, but only up to a mix of 5-10% due to supply constraints.

Key Takeaways:

• Lufthansa plans to test biofuels on regular passenger flights, with a 50% biofuel mix for one engine on an Airbus A321 airliner.
• The airline has partnered with Neste Oil Oyj to power flights using biofuel made from plant oils.
• Lufthansa aims to use biofuels in its entire fleet by 2020, but only up to a mix of 5-10% due to supply constraints.
• The airline expects expenses for fuel to jump 15% in 2011, from a projected 5.2 billion euros ($6.8 billion US).
• Neste's biosynthetic kerosene is lighter and contains up to 4% more energy than regular kerosene.
• The test program will cost 6.6 million euros, with Lufthansa paying 4.1 million euros.
• The European Union will include the aviation industry in its EU Emissions Trading Scheme from 2012, capping the industry's annual emissions.
• Boeing forecasts that airlines will derive 1% of their fuel from plants by 2015.
• British Airways and Continental Airlines are among the other carriers trying to curb emissions of greenhouse gases.

Statistics:

• 50%: The biofuel mix for one engine on the Airbus A321 airliner.
• 5-10%: The target biofuel mix for Lufthansa's entire fleet by 2020.
• 15%: The expected increase in fuel expenses for Lufthansa in 2011.
• 5.2 billion euros: The projected fuel expenses for Lufthansa in 2011.
• $6.8 billion US: The converted projection of Lufthansa's fuel expenses for 2011.
• 4%: The potential increase in energy density of Neste's biosynthetic kerosene compared to regular kerosene.
• 6.6 million euros: The total cost of the test program.
• 4.1 million euros: The amount Lufthansa will pay for the test program.
• 800,000 metric tons: The annual production capacity of Neste's Singapore plant.
• 212 million tons: The target reduction in carbon dioxide emissions for the aviation industry in 2012.
• 208 million tons: The target reduction in carbon dioxide emissions for the aviation industry from 2013 to 2020.

Sources:

• Bloomberg News
• Lufthansa
• Neste Oil Oyj
• Bloomberg New Energy Finance
• British Airways
• Continental Airlines
• European Union
• Boeing
• Waterloo Region Record