1. Federal Aviation Administration The Commercial Aviation Alternative Fuels Initiative (CAAFI) Presented to: APEC Aviation Emissions Task Force Singapore By: Kurt Edwards Senior International Advisor Office of Environment and Energy Date:September 15, 2009

2. Commercial Aviation Alternative Fuels Initiative 2 Federal Aviation Administration September 15, 2009 Aviation impacts community noise footprints, air quality, water quality, energy usage and availability, and the global climate. Trends show environmental impacts from aircraft noise and aviation emissions will be a critical constraint on capacity growth. Fundamental changes ongoing from economic downturn, fuel costs, and financial turmoil.  The challenge is to ensure energy availability and affordability and reducing aviation’s environmental footprint, even with projected aviation growth NOISE AIR QUALITY WATER QUALITY ENERGY GLOBAL CLIMATE Aviation Environmental Drivers

3. Commercial Aviation Alternative Fuels Initiative 3 Federal Aviation Administration September 15, 2009 NextGen Vision Provide environmental protection that allows sustained aviation growth Key Initiatives: Continued Local Mitigation Better Scientific Understanding Accelerate Operational Changes Mature New Aircraft Technology Develop Alternative Fuels Policy Options Tackling Aviation Environmental Challenges

4. Commercial Aviation Alternative Fuels Initiative 4 Federal Aviation Administration September 15, 2009 w/ operational improvements 1.00 1.50 growth w/ currently available solutions w/ technology improvements 200520152025 (Relative CO 2 increase) carbon neutral growth w/ alternate fuels Market-based measures? Possible standards? U.S. Strategy to Reduce Aviation’s Carbon Footprint

5. Commercial Aviation Alternative Fuels Initiative 5 Federal Aviation Administration September 15, 2009 A consortium of government agencies, airlines, manufacturers, airports, and current and prospective fuel suppliers Foster the development and deployment of alternative jet fuels Share Information and Coordinate research and development of alternative jet fuels, including technical specifications, environmental assessment, production and distribution To enhance energy security, aviation economics and environment The Commercial Aviation Alternative Fuel Initiative (CAAFI)

6. Commercial Aviation Alternative Fuels Initiative 6 Federal Aviation Administration September 15, 2009 Members Sponsors FAA ATA AIA ACI Aerospace Industries Association Aircraft Engine OEMs Aircraft OEMs Aircraft Equip Cos DOC DOE USDA USAF USN DARPA US Army DESC NIST NASA Oil Companies Energy Companies ASTM CRC Bio-Fuels Companies Airports Council International – North America Federal Aviation Administration Air Transport Association UK MoD Bauhaus NRC Canada ANP Brazil Universities Think Tanks Consultants Who is CAAFI? Airlines ALPA Air Cargo Airport Operators NetJets IATA ICAO

7. Commercial Aviation Alternative Fuels Initiative 7 Federal Aviation Administration September 15, 2009 Assess Impact R&D Panel Environmental Panel Certification-Qualification Panel Generate Ideas/Solutions Enable Supply Generate Demand & Target Funding Business & Economics Panel CAAFI Structure and Strategy

8. Commercial Aviation Alternative Fuels Initiative 8 Federal Aviation Administration September 15, 2009 ASTM Approval of Generic 50/50 Fischer-Tropsch Blend 20082009201020122011 2013 Hydrogenated Renewable Jet (HRJ) 50% Blend ASTM Approval Hydrogenated Renewable Jet (HRJ) 100% Fuel ASTM Approval Hydrogenated Renewable Jet (HRJ) Fuel Evaluation Fuel Certification Timeline

9. Commercial Aviation Alternative Fuels Initiative 9 Federal Aviation Administration September 15, 2009 R&D: Feedstocks Roadmap

10. Commercial Aviation Alternative Fuels Initiative 10 Federal Aviation Administration September 15, 2009 Successful ANZ Flight Demo Date: December 30 2008 Feedstock: Jatropha oil Feedstock: Jatropha and algal oil Successful CO Flight Demo Date: Jan. 7 2009 Feedstock: Camelina, Jatropha and algal oil Successful JAL Flight Demo Date: Jan. 30 2009 Three Successful HRJ Biojet Flight Programs * Graphics Courtesy J. Holmgren, UOP

11. Commercial Aviation Alternative Fuels Initiative 11 Federal Aviation Administration September 15, 2009 Need to determine “well-to-wake” life-cycle emissions Environment: Life Cycle Analysis (LCA) Bio feedstock Fossil feedstock

12. Commercial Aviation Alternative Fuels Initiative 12 Federal Aviation Administration September 15, 2009 Source: GIACC/4 (2009). Subject to modification. Assessed fuel usage projections - 2050 usage. Assessed land requirements to replace conventional jet fuel with 50/50 biofuel blend and 100% biofuel. Need feedstocks with high yield and low life cycle emissions that do not require arable land. Environment: Land Requirement for 2050 Aviation Biofuels

13. Commercial Aviation Alternative Fuels Initiative 13 Federal Aviation Administration September 15, 2009 Airlines & Operators Alt Fuel Producers Potential Funding Sources A2BE Carbon Capture Adv Bio-Energy Tech’s Agromass Biofuels Air BP Amyris Biotech Baard Energy Chevron ConocoPhillips Neste Oil SASOL Shell Solazyme SolArc PetroSA Syntroleum UOP ATA ALPA Alaska American Continental Delta FedEx Airbus Boeing GE PW JetBlue NetJets Northwest Southwest Star Alliance United US Airways UPS Morgan Stanley OPIS (Oil Pricing) Solarc (Taxes) Colonial Pipeline Magellan Pipeline Kinder Morgan Business: Facilitating a Future Market

14. Commercial Aviation Alternative Fuels Initiative 14 Federal Aviation Administration September 15, 2009 Aviation dependent on hydrocarbon based liquid fuels Concentrated Airport Distribution allows rapid deployment (e.g., 80% of fuel in 35 locations in U.S.) Timely Fuel Certification crucial for market Establishing GHG LCA crucial for decisions (policy and investment) Alternative fuels are technically feasible but need to get to deployment CAAFI helping to bring these pieces together Global harmonization key Closing Thoughts