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FINANCIAL NEWS
Qatar Airways plans investment in green jet fuels
11 Apr 2012
(MENAFN) Qatar Airways unveiled plans to enter eco-friendly fuel business through an investment in California-based Byogy Renewables, Bloomberg reported.
Chris Schroeder, Qatar Airways’ senior manager of corporate social responsibility said the carrier is seeking to invest in producing cleaner jet fuel from alcohol, curbing carbon output to meet emission goals.
Byogy is specialized in producing jet fuel from alcohol in the US, where it expects the ASTM International standards body to endorse the manufacturing process by late 2013.
Using alcohol as feedstock would help cut carbon emissions as airlines seek to meet International Air Transport Association (IATA) targets to curb the growth of emissions by 2020 and to halve greenhouse gases by 2050 from 2005 levels. IATA wants about 6 percent of jet fuel to be met by biofuels by 2020.
Kevin Weiss, CEO of Byogy, disclosed plans to build plants in Brazil, the US and the Middle East, adding that lenders have shown “preliminary interest” in providing debt funding.
He also said that the company will construct at least two factories next year, with commercial output targeted by early 2015.
Byogy said it inked an agreement with a Brazilian ethanol maker to use its alcohol, and is in final talks with airline Azul Linhas Aereas Brasileiras to market the fuel.
Byogy is also in talks with Brazilian lender to raise USD30 million by the fourth quarter, which will be used to accelerate its fuel testing with ASTM, Weiss said.
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