Comments on: Aviation Biofuels Desperate for Policy Boost http://biomasshub.com/aviation-biofuels-desperate-policy-boost/ global bioenergy supply chain intelligence Thu, 11 Aug 2011 20:38:26 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Ronald Steenblik http://biomasshub.com/aviation-biofuels-desperate-policy-boost/#comment-316 Ronald Steenblik Mon, 08 Mar 2010 23:14:11 +0000 http://www.biomassintel.com/?p=1591#comment-316 Yeah, I can imagine that the airline industry and aircraft manufacturers want to underwrite the cost of their fuel. Currently, jet fuel costs around US$ 680 per metric tonne (www.iata.org/whatwedo/economics/fuel_monitor/index.htm). The cost of coconut oil (a mid-priced oil) is around US$ 525 per metric tonne -- its lowest price in five years(http://www.fao.org/es/esc/prices/tmp/1268089443183.csv). But the cost of converting that to bio-jet fuel would bring the cost of bio-jet to more like US$ 750 per tonne. And, of course, if demand for the feedstock oil were to increase, its price would quickly shoot up to a more typical price of US$ 800 per tonne (i.e., $1140 per tonne of bio-jet) or higher. That is a big difference from US$ 680 per tonne. So, like so many other industries, the aviation industry looks to government to cover their extra costs. But what is the compelling public policy argument for the government to pay these costs? Yeah, I can imagine that the airline industry and aircraft manufacturers want to underwrite the cost of their fuel. Currently, jet fuel costs around US$ 680 per metric tonne (www.iata.org/whatwedo/economics/fuel_monitor/index.htm). The cost of coconut oil (a mid-priced oil) is around US$ 525 per metric tonne — its lowest price in five years(http://www.fao.org/es/esc/prices/tmp/1268089443183.csv). But the cost of converting that to bio-jet fuel would bring the cost of bio-jet to more like US$ 750 per tonne. And, of course, if demand for the feedstock oil were to increase, its price would quickly shoot up to a more typical price of US$ 800 per tonne (i.e., $1140 per tonne of bio-jet) or higher. That is a big difference from US$ 680 per tonne.

So, like so many other industries, the aviation industry looks to government to cover their extra costs. But what is the compelling public policy argument for the government to pay these costs?

]]> By: Aviation Biofuels Desperate for Policy Boost | BIOMASS INTEL | Tailspin http://biomasshub.com/aviation-biofuels-desperate-policy-boost/#comment-315 Aviation Biofuels Desperate for Policy Boost | BIOMASS INTEL | Tailspin Wed, 24 Feb 2010 18:55:30 +0000 http://www.biomassintel.com/?p=1591#comment-315 [...] this link: Aviation Biofuels Desperate for Policy Boost | BIOMASS INTEL Aviation [...] [...] this link: Aviation Biofuels Desperate for Policy Boost | BIOMASS INTEL Aviation [...]

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