Break out session Climate Smart Supply Chains June – 17 – 2015 Misha Valk
Outline Rationale for biojet and introduction SkyNRG Our approach to supply chain development
Biojet fuel is essential in order to substantially reduce carbon emissions 2 1 Cap net Improve fleet emissions from By 2050, net aviation carbon efficiency by 1.5% 2020 through emissions will be half of per year from now carbon neutral 3 what they where in 2005 until 2020 growth
Biofuels can be a natural hedge against increasingly volatile fossil fuel prices Historic jet fuel prices Operational cost structure 100% $/Mt 3% Other 5% $1400 6% Fees $1200 18% Maintenance $1000 Crew $800 31% Ownership $600 $400 Fuel 37% $200 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Gary Kelly, Southwest Airlines CEO : “Where is it going to be 90 days from now? It just is alarming to think that you could have that much volatility and that much surprise to the world.”
Track record SkyNRG KLM Corporate BioFuel Programme Sustainability Board SkyNRG, KLM, the Dutch SkyNRG founded by government, Neste, Port of Rotterdam and three complementary Copernicus Institute Schiphol set up a supply JV partners Utrecht University chain initiative in NL 2009 2010 2011 2012 2013 2014 SkyNRG supplied most commercial sustainable jet fuel flights up to date First Green Route Second Green Route Weekly biofuel flights from Weekly biofuel flights New York to Amsterdam from Amsterdam to Aruba & Bonaire
SkyNRG’s main focus is to supply aviation with sustainable jet fuel To do this we have two main pillars in the company Supply & Operations Market development 1 2 Operational Regional supply chain development Feedstock – Fuel sourcing Technology – Blending & certification Downstream logistics – Delivery & paperwork Co-funding the premium Discussion & Interaction – Different stakeholder groups Corporate program – (governments, airlines, industry, NGOs) Airport commitments Conferences – Incentivized systems Workshops Feedstock – Ensure sustainability – Enabling projects
Outline Rationale for biojet and introduction SkyNRG Our approach to supply chain development
The two pillars come together in our BioPort concept A local BioPort focuses on creating value downstream in the Biojet fuel value chain by aggregating all stakeholders at a single airport. Two key elements: 1. Get co-funding mechanisms in place (government incentives + Corporate Program to bridge the transition ) 2. Development of a efficient regional supply chain (feedstock + conversion technology) that can compete with fossil fuel SkyNRG BioPort structure 2 Develop a regional supply chain 1 Get BioPort operational with external fuel supply Physical $ Government bio jet BioPort delivery Blending & development Feedstock Conversion $ Logistics team Corporates Physical bio jet delivery Benefits Corporate Airline Program
Highlighting: BioPort Holland A joint initiative to strengthen the development and deployment of sustainable aviation biofuels in the Netherlands A consortium of strong partners with ambitious sustainability targets Enabled by the implementation of the EU Renewable Energy Directive in the Netherlands I&M EZ Refining Pure fuel Blending Blended fuel Airport hydrant Veg oil
Highlighting: the corporate program SkyNRG Corporate Program: rationale and description Airlines do not have enough capital to pay a premium for sustainable jet fuel SkyNRG’s Corporate Program enables corporations to reduce their business travel footprint by flying on sustainable jet fuel The program connects the corporates to other frontrunners, that demonstrate leadership in the field of sustainability The program offers a worldwide range of exposure, e.g. large press events & media coverage The first corporate program was set up with KLM and enables green routes Green Route: New York JFK- Amsterdam Schiphol Airline: KLM Aircraft: Boeing 777 Feedstock: Used Cooking Oil Blend: 20% Frequency: every Thursday Sustainability: Entire supply chain RSB certified Green Route: Amsterdam Schiphol - Bonaire Airline: KLM Aircraft: Airbus / Embrear Feedstock: Used Cooking Oil / Camelina Oil Blend: 20% Frequency: 2 times a week
Discussion and questions
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