Raymond James analyst Pavel Molchanov wrote that “While the [renewable jet fuel] addressable market is massive, it will clearly be awhile (at least 3-4 years) before biojet enters the mainstream. Safety concerns persist among some airline executives, notwithstanding biojet’s positive track record in three years of testing worldwide. Similarly, the strict regulation of civil aviation means that the required regulatory approvals can take a long time, even if the companies themselves are more proactive. For example, Gevo expects its isobutanol to be certified for aviation by ASTM International by 2013. As far as biojet economics go, they vary depending on feedstock and production process, but given the industry’s early stage, for the time being unit costs can certainly be higher than that of conventional fuel. For example, this helps explain why Finland’s Finnair recently postponed plans to use Neste Oil’s biojet on commercial flights.
Category: Producer News