11 JANUARY 2016

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Article from BTNews 11 JANUARY 2016

Green fuels failure

The much heralded British Airways scheme to supply fuel for its London City Airport Embraer fleet has been scrapped.

The Green Sky project was due to open in 2017 at an ex-oil refinery in Thurrock, Essex, where it would have turned into gas 575,000 tonnes of household waste otherwise destined for landfill sites or incinerators.

Enough green fuel would have been produced to power all BA’s yearly flights from London City twice over.

But BA told  The Guardian  that the project had now been mothballed because of low crude oil prices, jitters among investors, and a lack of policy engagement from Downing Street.

“The government needs to support innovative aviation biofuels projects such as this if they are to progress,” said Cathy West, a BA spokeswoman. “Aviation fuels are not eligible for incentives that road transport fuels receive, making it difficult to build a business case to invest in UK aviation fuels projects. This affects investor confidence.”

The airline had partnered with US technology firm Solena Fuels Corporation, which filed for bankruptcy three months ago.
 
New market mechanisms to green the industry will be debated at an ICAO conference later this year. Use of second-generation biofuels to power jets is widely seen as one of the most promising technologies.   www.ba.com

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