Sustainable fuels in aviation
- Feasibility study on deployment of
aviation biofuels in Finland
Flightpath workshop, Brussels, 12 Feb 2015
Anna Sotaniemi
Basics
 Feasibility study commissioned by:
Ministry of Transport and Communications,
Ministry of Employment and the Economy,
Finavia,
Finnair, and
Neste Oil
 Author: Gaia Consulting Ltd
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Why Finland?
 Finland is a world leader in producing renewable
diesel and has technology to produce sustainable
renewable aviation fuel
 Helsinki airport is a growing aviation hub
between Asia and Europe
 Why not make Helsinki airport a ”green hub”,
where sustainable fuel is continuously available?
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Price estimate for biofuels and additional cost for their use
Price level
Kerosene (IATA Fuel Price Monitor, 1.8.2014)
USD 950 / t
Biokerosene (NEXBTL) (price estimate 2015-2016)
USD 2 400 /t
Biokerosene (price estimate 2017-)
USD 1 900 / t
Renewable diesel for aviation (price estimate 2015-2016)
USD 1 700 / t
Price estimates for biokerosene and renewable diesel are based on
Neste Oil’s estimates. Price estimate for renewable diesel for aviation
is about 1,75-2 times higher than the price of fossil kerosene. This
estimate has been used elsewhere in calculations. The Finnish concept
is based on renewable diesel for aviation.
Additional cost for using renewable diesel for aviation
Additional cost for using biofuels includes the additional cost for the price of the fuel (compared to fossil fuel) only. It thus does not
include sales and marketing prices.
Finnish concept to deploy sustainable renewable aviation jet fuel
Front runner companies fly bio
Finnair uses sustainable
renewable jet fuel
Civil servants fly bio (public
procurement)
Neste Oil produces
sustainable renewable
jet fuel
Private passengers eventually
fly bio
Distribution of sustainable
renewable jet fuel as an
essential element of the
Helsinki Green Hub
Finnish concept to deploy sustainable renewable aviation jet fuel
Year 1
Year 2
Year 3
• Deployment of biofuel
• Increase in the use of biofuel by
• Increase in the use of biofuel by
• Finnair uses sustainable aviation jet
fuel based on renewable diesel
produced in Finland
• Biofuel delivery as part of the
Helsinki Green hub
• Front runner companies and civil
servants fly bio
• State aid to balance the price
bringing in more interested
bringing in interested private
companies
passengers
• Concept testing for bringing in
private passengers
• State aid to balance the price
• Concepts to reward passengers
and air carriers for using biofuel
Finnish concept
Osuus lisäkustannuksista (%)
Example of the coverage of additional cost for using renewable
diesel for aviation, years 1-3
Yellow: front runner companies, blue: civil servants, orange: state aid, grey: private passenger. During years
1 and 2 the share of company customers and state aid is big. The presumption is that state aid would cover
45% of the additional cost of using biofuel in year 1 and 2. During year 2 participation of private passengers
would be introduced. Their share would grow significantly during year 3.
Concept-related X-factors
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ASTM standardisation for renewable diesel
Price of sustainable renewable aviation jet fuel
Price of fossil jet fuel
Willingness to pay
Interest of air carriers to deploy biofuels
Timing of the deployment
Possibility to take advantage of mass balance
calculation
Cooperation with fuel distributors at the Helsinki
airport
Sustainability criteria
Developments in legislation and mandates
Possibility to grant state aid to open up aviation
biofuel markets
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