The Aviation Biofuels Opportunity
M. Fiskerud, Nordic Director, SkyNRG July 20th 2015
SkyNRG is active in the sustainable aviation fuel space Short overview of achievements to date SkyNRG Sustainability Board
SkyNRG founded by three complementary JV partners
2009
2010
KLM Corporate Biofuel Program
SkyNRG first operator capable of supplying RSB certified jet fuel into wing
Copernicus Institute Utrecht University
2011
2012
SkyNRG is the proud global market leader, having supplied most commercial sustainable jet fuel flights up to date
2
First Green Route Start weekly KLM SJF flights from JFK New York to Schiphol Amsterdam
2013
Second Green Route KLM SJF flights from Schiphol Amsterdam to Aruba
2014
New partnerships Holland BioPort Brisbane BioPort SkyNRG Nordic Karlstad BioPort Project Solaris
2015
Nordic green flights
Fly Green Fund Involving corporates, government and end-users
What’s next? We need more volume to get the price down
Simplified break down and reduction potential of the sustainable jet fuel price
Price / ton Short term: Fly Green Fund Create scale through co-funding of existing production routes (Fly Green Fund)
~ € 15.000 – 20.000
Biojet premium in 2009
Long term: BioPorts Aggregate demand to allow new technology introduction and supply chain integration (BioPorts) in the Nordics
~ € 3.000 – 4.000
Creating volume Current biojet premium
New technologies & supply chain integration
Legislative incentives
€ 800,-
Fossil Jet-A1 Price
2009
2014
2020
Introducing Bioport Holland
In BPH, SkyNRG has a strong focus on taking away hurdles that inhibit large scale uptake of bio jet fuel
Product quality
Blending
Pipelines
Feedstock
Paper work
Cost
High lighting a feedstock: Project Solaris in South Africa Solaris supply chain Partners
Animal feed Commercial farms Small holder farms
Cleaning & crushing
Tobacc o Oil
Refining
Jet fuel
Biomass
Support partners
Project description Set up commercial size farming of energy tobacco in Limpopo Province, SA Mix of smallholder and commercial farmers all RSb certified 50 Ha today 25,000 Ha in 2020 Energy tobacco – ‘Solaris’ Solaris’s oil can be converted into sustainable jet fuel When produced in an optimized supply chain set up savings are expected to reach 75%, compared to fossil jet fuel
So we’re getting ready for 2016 But where’s the fuel? We’re betting on Hydrotreated Renewable Diesel (HRD) The current HEFA supply chain has 1 major issue: Jet A1 (min. 50%) D7566
HRD Refining Feedstock
HEFA Jet fuel
HRD Fuel
HRD fuel
D1655
Blending
Aviation
Diesel markets (at HRD prices)
Distillation
Globally 3 million ton production capacity
There is currently no dedicated HEFA jet production capacity in the world – – – –
A separate distillation process is needed to get HEFA jet out of the HRD mixture The remaining HRD is sold into the diesel pool, as renewable diesel, and at renewable diesel prices So all cost of these extra steps have to be accounted for in the jet fraction Additional cost from inefficient logistics due to small volumes
HRD (significantly) reduces cost, and increases availability In specific settings only a small premium over fossil fuel remains. Jet A1 (min. 50%) D7566
Refining HRD
HEFA Jet fuel
HRD Fuel
Feedstock Jet A1
3 million ton global production capacity
Blending
Aviation
Diesel markets (at HRD prices)
Distillation
D7566
Blending
(min. 90%)
HRD fuel
D1655
D1655
Aviation
There is currently no dedicated HEFA jet production capacity in the world A separate distillation process is needed to get HEFA jet out of the HRD mixture The remaining HRD is sold into the diesel pool, as renewable diesel, and at renewable diesel prices So all cost of these extra steps have to be accounted for in the jet fraction Additional cost from inefficient logistics due to small volumes
Karlstad BioPort: It is possible and now we just have to copy & paste
Short term
Short term supply • Permanent bio jet fuel tank installed at KSD • Supplies commercial flights with SJF
Fly Green Fund • Enables corporates to fly on bio jet fuel • Funds will be used to enable green flights and drive local supply chain development project
Long term
Supply chain development • Set up a supply chain consortium • establish a reliable supply of bio jet fuel to KSD and to surrounding airports
Thank you! Further questions? Feel free to contact SkyNRG at any time. Maria Fiskerud Nordic Director
[email protected] 0046706071161
Misha Valk Head of Business Development
[email protected] 0031646047439
