1. Seed renewable energy industrySeed renewable energy industry Strengthen Washington as a financial centerStrengthen Washington as a financial center Good international air service - the key to both Leveraging Global Reach WATF’s Task: Catalyze action by bringing the players together © WATF 12/08

2. What to do about it is a Business Opportunity Climate Change is a Reality WATF’s Task: Catalyze action by bringing the players together © WATF 12/08

3. Meet the world’s expanding air service demand without increasing Greenhouse Gases (GHG)Meet the world’s expanding air service demand without increasing Greenhouse Gases (GHG) Be carbon neutral by 2050Be carbon neutral by 2050 Air transportation emits 2% of Greenhouse Gases Source: London Economist Climate Change – Aviation’s Goal Reducing Greenhouse Gases = Greater Efficiency and Lower Costs © WATF 12/08

4. Aerospace Drives New Technologies © WATF 12/08

5. More specifically, create an alternative fuel that: Can mix with existing jet fuel, i.e. can be “dropped-in”Can mix with existing jet fuel, i.e. can be “dropped-in” Does not compete with food production on land or seaDoes not compete with food production on land or sea Reduces Greenhouse GasesReduces Greenhouse Gases Has Socioeconomic benefitsHas Socioeconomic benefits Does not endanger any ecosystemDoes not endanger any ecosystem Climate Change – Aviation’s Goal Reducing Greenhouse Gases = Greater Efficiency and Lower Costs © WATF 12/08

6. Greenhouse Gases Aviation – A modest sinner, but… Public Electricity/Heat – 35% Public Electricity/Heat – 35% Industry – 18% Road Transport – 18% Other Sectors – 10% Residential – 8% Energy – 5% Other Transport – 4% Aviation – 2% Source: Economist - IEA … visible target with no fixed constituency © WATF 12/08

7. Greenhouse Gases Aviation’s Progress: This decade, GHG emissions by U.S. carriers reduced 4%; passengers up 12%; cargo up 22%This decade, GHG emissions by U.S. carriers reduced 4%; passengers up 12%; cargo up 22% Alternate fuels and power plants flownAlternate fuels and power plants flown Air Traffic Control improvements demonstratedAir Traffic Control improvements demonstrated Further Potential Reductions: New Air Traffic Control……………...15% - 20% New Air Traffic Control……………...15% - 20% Engine and airframe efficiencies…..15% - 25% Engine and airframe efficiencies…..15% - 25% Airport Efficiencies…………………..15% Airport Efficiencies…………………..15% © WATF 12/08

8. Boeing and Airbus: Working together with Rolls-Royce, General Electric, Pratt & Whitney, Honeywell/UOP and others. Cooperative Global Effort © WATF 12/08

9. Bio Fuel – Why? © WATF 12/08 Fossil: Adds to GHG MineRefineBurn Add to GHG Renewable: Does not add to GHG Grow (feedstock consumes GHG) RefineBurn GHG release back to atmosphere

10. CO2 – consumed by plant/algae productionCO2 – consumed by plant/algae production Jatropha, Switchgrass, etc. – grows like weeds; uses non-arable landJatropha, Switchgrass, etc. – grows like weeds; uses non-arable land Algae – attractive, but needs major capital investmentAlgae – attractive, but needs major capital investment Medium term – find algae that eat CO2; excrete jet fuel! Bio Fuel – Feed Stocks © WATF 12/08

11. “Biology has moved from being an intuitive to an exact science.” © WATF 12/08 Aristides A. N. Patrinos, Ph.D. President, Synthetic Genomics

12. © WATF 12/08 Bio Fuel Development - Rapid Progress - Rapid Progress “Drop-In” 50/50 blend with Jet A-1“Drop-In” 50/50 blend with Jet A-1 Made from inedible weed (Jatropha)Made from inedible weed (Jatropha) Production, not laboratory quantity requiredProduction, not laboratory quantity required Made by Terasol Energy using UOP/Honeywell processMade by Terasol Energy using UOP/Honeywell process Met or exceeded all fuel specs – 4% higher energy content Source: Aviation Week

13. © WATF 12/08 Bio Fuel Development - Rapid Progress - Rapid Progress Air New Zealand, Continental, Japan Airlines and Emirates demo flights scheduled with “drop-in” alternativeAir New Zealand, Continental, Japan Airlines and Emirates demo flights scheduled with “drop-in” alternative First regular airline use possible in 3-5 yearsFirst regular airline use possible in 3-5 years Source: Aviation Week

14. Air Traffic Control – the Lowest Hanging Fruit! 22% of jet fuel wasted by ATC and airport delays in 2007 Need FAA Reauthorization Bill passed by Congress Fund accelerated ATC improvements, i.e. Next Gen space based system © WATF 12/08

15. Increase Airplane Fuel Efficiency Refined operating proceduresRefined operating procedures Short term – airframe and engine improvements Long term – innovative designs Revised manufacturing © WATF 12/08

16. AirportsAirports Alternative energy sourcesAlternative energy sources Reduced energy useReduced energy use Refined operating proceduresRefined operating procedures © WATF 12/08

17. DARPA Initiative Early 2007: 3 teams under contract to produce small production quantities of jet fuel from renewable sources. © WATF 12/08

18. United States Air Force Goal Use a 50% Alternative Fuel Blend for Half Their Domestic Need by 2016 U.S. Military - 1½% of U.S. fuel use - 340,000 barrels/day - 340,000 barrels/day

19. © WATF 12/08 Energy independenceEnergy independence Stimulate U.S. production of alternate fuelsStimulate U.S. production of alternate fuels Reduce Greenhouse Gas emissionsReduce Greenhouse Gas emissions The USAF Objective

20. © WATF 12/08 USAF Results Flight tested C-17, B-52 and B-1 on alternate fuelsFlight tested C-17, B-52 and B-1 on alternate fuels Stimulated construction of synthetic fuel refineryStimulated construction of synthetic fuel refinery ResearchResearch

21. Billions of dollars are being investedBillions of dollars are being invested Opportunity to eliminate U.S. dependency on imported oilOpportunity to eliminate U.S. dependency on imported oil Climate Change: An Economic and Political Opportunity WATF’s Task: Catalyze action by bringing the players together © WATF 12/08 Policy Required From State and Local Government