AviationTask ForceAnnualReport2016

2

Contents

04 Introduction

06 Stakeholders

07 Objectives

08 Initiatives

10 Current Research

12 Workshops

14 Looking Forward

16 Annexes A Steering Committee B Voting Members C Observers

3

Letter from Task Force Leader

T his year’s Paris Climate Summit focused the world’s attention on climate change. Aviation is a particularly challenging sector for reducing greenhouse gas emissions,

as it is growing fast and there are limited options for powering aviation. However, the BioFuelNet (BFN) aviation taskforce has a strong team and I believe can make a significant impact.

This year has been an exciting year for the task force. It began with the official launch of the Aviation Task Force. The Task Force include participation from industry, government, NGOs and aca-demia. At the BFN Advanced Biofuels Symposium 2015, we had an excellent turnout as an expert panel debated options for imple-menting aviation biofuel.

The highlight of the year was the launch of the Canada’s Biojet Supply Chain Initiative led by Fred Ghatala. This initiative will see a major airport use 400,000 litres of biojet fuel and thereby test the biojet supply chain during 2016 and 2017. This initiative will be a high profile event that raises the profile of biojet fuel.

Looking to the future, the Aviation Task Force has started to develop its next large initiative to enable the use of 2.2% biojet fuel in 2020. This would enable the aviation sector to achieve carbon neutral growth. As these initiatives develop, it will demonstrate the potential of industry, government, NGOs and academia work-ing together for a greener future.

Best Regards,

Prof. Murray ThomsonChair, BFN Aviation Task Force

The Task Force

Introduction and context

Aviation represents one of the most challenging fronts for biofuel development. Historically, biofuel applications have involved direct combustion of biomass in industrial

settings, digestion, gas capture, fermentation/distillation of sugars and starches, and upgrading plant and animal oils for diesel applications — none of which typically produce biojet fuel. The deployment of biojet has been delayed by a myriad of issues, including the complexity and cost of producing biojet, the relatively low rival cost of conventional jet fuel, the rigorous specification standards of the final jet fuel product, and supply chain challenges ranging from feedstock production costs to policy considerations.

BFN’s ATF envisions a Canada in which biojet fuel is sustainably produced, commercially available in large quantities, and plays a major role in reducing greenhouse gas emissions from the aviation sector.

The purpose of BFN’s Task Forces is to translate knowledge de-veloped within the network’s research program and other sources to achieve BFN’s vision of a thriving advanced biofuels industry in Canada.

4

5

The Task Force

The Stakeholders Voting membersThere are 25 voting members from 7 different Canadian universities, 4 governmental organizations and 5 international industries. There are also 11 observers in the ATF. Details regarding all members can be found in Annex A. The team includes experts from a variety of disciplines and sectors, strategically selected for their contributions along the biojet fuel value chain. Relevant areas of expertise include: biomass-chain (BFN, ASCENT), biomass conversion to biofuel (Queen’s University, several others), fuel procurement and distribution (SKYNRG), engines and combustion (University of Toronto, ASCENT), commercial end-use (Air Canada, Boeing), policy (Transport Canada, NRC), lifecycle emissions (McGill University), and guidance materials and best practices (IATA, CAAFI). Waterfall Group has over a decade’s hands-on experience in developing full renewal fuel supply chains in Canada.

Steering CommitteeThe steering committee consists of 6 individuals representing BFN’s stakeholder communities of academia (one person), industry (3 people) and government (2 people). The ATF steering committee was elected by the ATF voting members during the first ATF workshop on July 2015.

6

7

The Task Force

The Objectives• Ensure all stakeholders are sufficiently informed of the latest

developments relating to biojet fuel in Canada through regular workshops, teleconferences, and an annual report;

• Work with stakeholders to identify the top 5 barriers to the commercial development of aviation biofuels in Canada, and reach consensus on how those barriers should be prioritized;

• Identify and execute incremental initiatives that bring the ATF closer to realizing its vision;

• Execute a pilot project that will see biojet fuel used in an airport setting, blended with the airport’s general fuel supply.

8

Task Force Initiatives 2015-2017

9

Imagine a grid of pipes under the airport, with jet fuel flowing through them like the blood in our circulatory system. That’s exactly how the fuel makes its way to the

planes we board. When an airline buys fuel from a supplier, the fuel gets delivered into a “tank farm” (group of tanks) that’s jointly owned by a consortium of airlines. A carefully orchestrated distribution infrastructure moves the fuel from the tank farm through the grid and finally to a pump truck, which then transfers the fuel into the plane.

This subterranean grid is the target of Canada’s BioJet Supply Chain Initiative (CBSCI). A partnership between BioFuelNet’s Aviation Task Force and the Green Aviation Research and Development Network (GARDN), CBSCI seeks to inject more biojet into the pipeline mix.

Uneven playing fieldUntil now, biojet hasn’t had a fair shake at this game, says Fred Ghatala, manager of the CBSCI project and also a partner at Waterfall Group strategic consultancy. “Most biojet has been transported and delivered to the airplane wings by fuel bowser trucks, which is costly and inefficient,” Ghatala explains. “It’s like carrying around batteries to every room of your house rather than having power outlets you can plug into.”

In order to bring costs down to competitive levels, the biojet needs to enter the system at the beginning of the distribution system, not the end. This means dropping it into the tank farm along with the petroleum-based fuels in current use.

What’s in it for us?Why introduce biojet in the first place? The simple answer: reducing greenhouse gas (GHG) emissions. According to Ghatala, “As much as 3 to 4 percent of GHG emissions come from air transport,” with no caps on these emissions. While the sector has signed up for voluntary targets, stakeholders such as the International Air Transport Association and the International Civil Aviation Organization agree the targets won’t be met without a contribution from biojet.

In January 2016, Ghatala’s group completed the necessary agreements to get CBSCI off the ground, with Air Canada signing on as the project’s official carrier. “We have invested billions of dollars to reduce our fuel consumption and meet our emission reduction goals,” says Teresa Ehman, Air Canada’s Director of Environmental Affairs, adding that “contributing to partnerships on sustainable aviation biofuel development is important to longer-term strategy.” Additional partners include Transport Canada, the National Research Council, Boeing, and three universities, among others. Colleen Carmody, a senior advisor at Transport Canada, applauds the initiative for “fostering strong working relationships between the aviation and biofuels industry, government, and the research community.” While the test site hasn’t been finalized yet, it will likely involve a major international airport.

As raw material for the biojet, the project will use a mix of certified sustainable feedstocks such as canola oil, tallow or recycled animal fats. And then there’s the policy piece. “Developing a biojet supply chain in Canada will require firm regulatory commitments and fiscal measures to ensure market access,” says Ghatala. A tall order? “Everything new requires some activation energy upfront,” he notes. “It is the same situation when any strategic sector begins developing.”

The sky is greenBioFuelNet’s aviation task force is working to bring biojet fuel to an airplane near you.

“contributing to partnerships on sustainable aviation biofuel development is important to longer-term strategy.”

10

1. Work Package Title: Macroalgae as a Viable Biomass for the Treatment of

Wastewater and Production of Biojet Fuel Lead PI: Pascale Champagne, Professor, Queen’s University Abstract:

This work package is to develop a techno-economically sound, GHG-neutral macroalgae-to-bio-jet fuel technology employing waste streams. Specifically, (1) the initial starting point is to assess the feasibility of using macroalgae as a means to treat wastewater (Utilities Kingston), capture and sequester CO2 from flue gas (Lafarge), and simultaneously enhance macroalgae cultivation, promoting higher growth and improved biomass production. (2) With regard to the conversion of the biomass, the use of novel CO2-based extraction processes (e.g., CO2-expanded liquids (CXL)) to recover lipids and products of carbohydrate conversion will also be assessed. To assist in closing the economic balance, lipids generated from the process will be extracted with CXL and converted to biodiesel in conjunction with the conversion of carbohydrates. (3) The high carbohydrate content in macroalgae will be finally converted to biojet fuel through the conversion of carbohydrates using a novel approach, aldol condensation and hydrogenation.

2. Work Package Title: Development of a Modelling Framework to Optimize

Biojet Fuel Supply Chains for Economic, Environmental, and Social Goals Attainment

Lead PI: Joann Whalen, Professor, McGill University Abstract:

Domestically-produced drop-in biojet fuel is an alternative product that reduces dependency on foreign imports of crude oil and reduces greenhouse gas emissions. Yet, there are major questions about how to develop a viable biojet fuel industry that can meet the technical, economic, and environmental requirements for biojet fuel, as defined by government policy. Supply chain modelling and optimization holds promise for addressing this complex problem because the decision framework provides answers at the strategic, tactical, and operational levels. For example, a strategic biofuel supply chain model decides on the optimum network configuration by determining biomass supply sources, location of conversion facilities, capacities, conversion technologies and modes of transportation. Tactical decisions focus on material flows between network nodes (purchase and sales decisions) and operational decisions deal with detailed inventory management and scheduling.

There are three questions to be answered in this work: 1. What are the optimum strategic and tactical

decisions that maximize the economic performance (total net present value) of a military biojet fuel supply chain?

2. What are the characteristics of the trade-off between the economic and environmental performance (life cycle greenhouse gas emissions) of the supply chain? What are the strategic and tactical decisions that optimize both performances given a specific preference model?

3. How robust are these strategic and tactical supply chain decisions, considering uncertainties in model parameters? And how can we design biojet fuel supply chains that withstand fluctuations in parameters?

3. Work Package Title: Bio-diluent and Biojet Production and Use: Techno-Economics and GHG Impacts

Lead PI: Warren Mabee, Professor, Queen’s University

Abstract: The proposed work package will support the development of the thermochemical bio-refinery by assessing potential co-production of bio-based diluent and biojet fuel through both gasification and pyrolysis platforms. The opportunity associated with bio-based diluent was identified in previous BFN research. Techno-economic modelling, life cycle assessment, and scenario analysis will be used to identify the optimal technology in terms of economic and environmental performance. Bio-based diluent is an option for oil sands producers who require diluent to blend with bitumen (3:7 ratio for pipelining) and who are under pressure to reduce the GHG intensity of bitumen-based crude. Developing bio-diluent provides a short-term product that can support infrastructure deployment and capacity development for Canada’s biofuel industry; in the longer term, either renewable diesel or biojet fuel can be produced using this infrastructure, depending upon Canadian priorities for biofuel production. Biojet is in strong demand by Canadian airlines to meet their commitments to carbon neutral growth beyond 2020. Thermochemical technologies (e.g., gasification + Fischer-Tropsch synthesis) can be operated to maximize renewable diesel (C15-C20) output, which can then be cracked into biojet kerosene (C10-C14) and bio-diluent (C4-C8). This work will assess the economic competitiveness and greenhouse gas impacts of large-scale co-production and use of biojet and bio-diluent in Canada, and supports a staged implementation of critical bio-refining infrastructure.

Profile of current research

11

12

First Aviation Task Force Workshop (during the BFN Advanced Biofuels Symposium), July 23rd, 2015

Total Participants:Almost all members (Voting and Observers)

Main Topics Covered:• The purpose of this task force• Member involvement in developing a proposal• Round table discussion regarding:

1. What are the priorities for 2017-2022? 2. What major joint initiative can we collectively

undertake?3. What should our research priorities be?4. Which government and industry priorities should be

addressed?

OutcomesIt was concluded that:• There are gaps in our research program on feedstocks• There are gaps in policy (The Aviation Task Force will

provide feedback to the policy projects)• Regarding the utilization projects: what can we do to

accelerate the ASTM certification process to accelerate biojet fuel development?

• Organizational matters: Approval of the Chair of the Task Force (Prof. Murray Thomson), Steering Committee members, and Aviation Task Force the Terms of Reference.

Task Force Workshops

13

Second Aviation Task Force Workshop (During the CBSCI workshop), September 24th, 2015

Total Participants: 207 voting members; 13 observers from academia, industry (Air Canada, CAAFI, SkyNRG) and government organizations (GARDN, NRC, Environment Canada)

Main Topics Covered:• Status update on current BFN biojet work packages• BFN Renewal and identifying a “legacy” initiative for

2017-2022• Roundtable discussion• Research priorities for 2017-2022

Outcomes:• Members received updates from BFN Research Teams• Discussion about research priorities• Feedback from governmental and industrial partners

(members) • Carbon Neutral Growth Enablement - This initiative

would target a small number of airports, (potentially 4, and ideally Canada’s 4 busiest) to continually utilize a blend of biojet fuel that equates to the amount required to achieve carbon-neutral growth at each airport (see table below for calculated blend percentages to achieve CNG starting in 2020). Potential options to achieve these volumes are through (a) airport landing fees, (b) legislated biojet blending requirement (with eligible pre-compliance activities recognized) (c) other, TBD

• Continuous Incremental Improvement in the Established Biofuel Sector - Partnerships should be established with existing facilities (e.g. first generation biorefineries, pulp & paper mills, etc.) or with new facilities that produce high-value co-products in parallel to determine specific needs that can be met by BFN’s research community.

• Adding Value to Biofuel Investments in Canada - BFN should invest in providing important research support to the biofuel sector to enable the co-developing (industry + BFN Research) bolt-on technologies that can produce biojet fuel in parallel with existing production at the chosen facility.

• Commercially Available Sustainable Feedstocks - Feedstocks must be sustainable, and municipal solid waste (MSW) is one that is particularly appealing. Collaboration with BFN’s Low-Cost Sustainable Feedstocks Task Force would be beneficial to the network as a whole.

• BFN as an Information Node on Path to Advanced Biofuels - The ATF can enable sector establishment and success by increasing the availability of robust data which can be improved in Canada.

Third Aviation Task Force Workshop (during the SBS3), December 2-3, 2015

Total Participants:Almost all members (voting and observers)

Main Topics Covered:• Canada’s Biojet Supply Chain Initiative:

Enabling 2020 Carbon Neutral Growth• Aviation Task Force 2017-2022 (General:

Vision, Problem, Approach)• Knowledge Translation Activity• ATF Research Priorities • Update on Work Packages

OutcomesBased on feedback which were received, the following take-homes can be concluded: • Determining the financial source is essential • Government mandate is essential to realize the goal of 2%

biojet in the mix• What the government decides can make or break the

biojet initiative• It is necessary to connect project 6 to conversion

technology• Data should be collected based on the availability

of feedstocks for each region and also amount of consumption

• It is necessary to have an estimation of the amount of feedstock needed to produce “2.2% by 2022”

• It is necessary to explore military usage

14

Looking forward to 2017-2022

Knowledge Translation The ATF proposes a combination of research and knowledge translation activities in 2017-2022 to help realize the ATF’s vision. The “2.2 by 2022” initiative would target the fuel supply systems at 4 airports (ideally Canada’s 4 busiest). The goal would be for each system to continually supply a blend of biojet fuel that equates to the amount required for departing flights to achieve carbon-neutral growth, which is 2.2% biojet by 2022. This initiative builds on previous knowledge developed through BFN and represents a logical next step for the ATF, which, by 2017, will have identified best practices for airport biojet operations.

There are several advantages to an airport-focused approach, including aggregated demand, centralized distribution, and economies of scale due to the large volumes of jet fuel. The ATF will seek consensus among stakeholder airlines, airframe manufacturers, airports, and aviation authorities on the appropriate mechanisms to enable this initiative. Investigations conducted through BFN have already determined that price premiums will be modest once biojet is available on a larger scale; this initiative focuses on providing the right conditions to achieve that scale-up. In parallel, a robust research portfolio will address the relevant topics needed to support the “2.2 by 2022” initiative.

Research• Feedstocks [Projects 1 and 2]. Facilitating the availability

of a steady supply of biomass at a reasonable price, capable of feeding into bolt-on units being developed by BFN’s conversion projects. Focus on increasing yields, minimizing inputs, improving logistics, utilizing waste.

• Conversion technology [Projects 3-6]. Focussed research to enable bolt-on unit development. Discover and develop reduced CapEx/OpEx solutions in partnership with existing facilities.

• Certification of new biojet fuels [Project 7]. Improving scientific understanding and proposing solutions to accelerate the process for approving new annexes to ASTM D7566.

• Economics [Projects 8, 9]. Modeling the financial and operational impacts of various economic and policy tools to encourage biojet use. E.g. subsidies, market-based measures, landing fees, mandates or other mechanisms.

• Data [Project 10]. Establish database of biomass locations, transportation and supply chain.

15

16

Annexes

17

Annex A List of Task Force Steering Committee Members

Mena, SalibManager, Engineering ProgramManagementAir Canada

Colleen CarmodyPolicy Advisor Transport Canada

Steve, CsonkaExecutive Director CAAFI

Murray, ThomsonProfessorUniversity of Toronto

Sylvain, CofskyExecutive Director GARDN

Fred, GhatalaPartnerWaterfall Advisors Group Ltd.

18

Annex B List of Task Force Voting members

Simon Barnabé Professeur agrégé Université du Québec à Trois-Rivières

Jack, SaddlerProfessorUniversity of British Columbia

Xiaotao, BiProfessorUniversity of British Columbia

Bradley, SavileProfessorUniversity of Toronto

John, WenProfessorUniversity of Waterloo

Adam, SteinbergProfessorUniversity of Toronto

Omer, GulderProfessorUniversity of Toronto

Joann, WhalenProfessorMcGill University

Myrka, ManzoManager, Environmental Affairs Air Canada

Ralph, CavalieriProfessorWashington State University

Ted McDonaldSenior Environmental Protection Specialist (Aviation) Transport Canada

Michael B., LakemanAssociate Technical FellowBoeing

Wajid, ChistyResearch OfficerNational Research Council of Canada

Robert, BoydManager - Biofuel Deployment ProjectIATA

Thomas, RoetgerAD Environment TechnologyIATA

Daniel, WehnerProject ManagerFraunhofer IBP

Misha, ValkHead of Business DevelopmentSkyNRG

Maarten, van DijkCEOSkyNRG

Mena, SalibManager, Engineering Program ManagementAir Canada

Colleen CarmodyPolicy Advisor Transport Canada

Steve, CsonkaExecutive Director CAAFI

Murray, ThomsonProfessorUniversity of Toronto

Sylvain, CofskyExecutive Director GARDN

Fred, GhatalaPartnerWaterfall Advisors Group Ltd.

Jeffrey BergthorsonProfessorMcGill University

Ajay, DalaiProfessorUniversity of Saskatchewan

19

Annex C List of Task Force Observers

Warren, MabeeProfessorQueen’s University

Lars, RehmannProfessorWestern University

Nicolas, AbatzoglouProfessorUniversity of Sherbrook

Charles, XuProfessorWestern University

Paul, CharpentierProfessorWestern University

Pascale ChampagneProfessorQueen’s University

Mohamed, LeilaPhD StudentMcGill University

Susan, van DykPDFUniversity of British Columbia

Pierre SylvestreSenior Program EngineerEnvironment Canada

Marie-Christine, FerlandResearcherINO

Kateryna, DerkachProject Manager & Executive AssistantGARDN