Eight US airlines agree to use renewable synthetic fuels on the ground at LAX

This week marked a ground-breaking agreement between eight leading U.S. air carriers, as outlined by the Air Transport Association of America (ATA). According to the Association, beginning in 2012, these eight will purchase nearly 1.5 million gallons of renewable synthetic diesel fuel for use in ground service equipment and vehicles at Los Angeles International Airport (LAX).

The eight airlines in agreement are Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and US Airways. ATA is hopeful of adding other airline partners in time.

“We are proud to take part in this innovative, collective endeavour that over time, will further reduce greenhouse gas emissions and improve local air quality through the use of greener fuels,” said Glenn Tilton, ATA Board Chairman and UAL Corporation Chairman, President and CEO. “This transaction promises to be the first of many such green fuel purchase agreements by the commercial aviation industry. It exemplifies the ongoing commitment of airlines and energy suppliers to diversify our fuel sources while contributing to a cleaner environment and adding new jobs to the economy.”

The agreement was signed with synthetic fuel specialist Rentech and Aircraft Service International Group (ASIG), a global provider to airlines and airports of ground, fuel, cargo and airport facility services. The renewable fuel, called RenDiesel, will be produced at the commercial-scale facility that Rentech is developing in Rialto, California, primarily from woody green waste such as grass clippings.

The fuel is expected to have a low carbon footprint and minimal particulate and other emissions, while meeting or exceeding all applicable fuel standards.

The airlines declined to reveal further details of the contract such as the price per gallon they were expecting to pay for the synthetic fuel and whether it would be cheaper or more expensive than the conventional fuel it was replacing.

“This collaborative effort is yet another environmentally friendly initiative that we and the airlines are pursuing at Los Angeles-area airports,” said Gina Marie Lindsey, Executive Director of Los Angeles World Airports (LAWA). “It shows what we can accomplish by working together towards a common and necessary goal.”

“The low-emissions profile and near-zero carbon footprint of our renewable RenDiesel will guarantee that the LAX ground service vehicles using this fuel will be among the cleanest and greenest of their kind,” said D. Hunt Ramsbottom, Rentech’s President and CEO. “We expect this agreement to serve as a model for future supply relationships at other airports and for other fuels, including Rentech’s synthetic jet fuel, which was recently approved for commercial airline use.”

In a BNET article last month, Ramsbottom stated that meeting California’s own renewable targets would require the blending in of 75,000 to 100,000 barrels a day of renewable fuel. “It will be a big market,” he said. “We will need to do 100 Rialto-sized plants to have one percent of the market for biomass. And keep in mind that a single [major] domestic airline uses 2.5 billion gallons of jet fuel per year. The challenge is getting to scale.”