The World Bank could prove to be an important partner in getting some of the world's first dedicated aviation biofuel refineries off the ground, as the airline industry eagerly looks for alternatives to petroleum.

Fuel is currently the aviation sector's single greatest expense. Many carriers have already adopted energy-efficient technologies and new operating strategies to reduce fuel burn, but industry experts acknowledge that biofuels are the only effective way to reduce emissions and shield the sector from volatile oil prices (Greenwire, Jan. 14).

Commercial airlines have flown safely on biofuels in thousands of test flights. But ramping up adoption has been slow, since only a trickle of fuel has made it to the market to date. Lufthansa German Airlines had to end its biofuel program early last year after running out of available fuel supplies.

Launching dedicated renewable jet fuel refineries in strategic locations across the globe would help secure sources of the low-carbon fuel for the airlines to buy. But finding financing for the facilities has proven to be a major barrier.

Charles Schlumberger, lead air transport specialist at the World Bank, said yesterday at the Transportation Research Board 92nd Annual Meeting that his institution could be a source of funding.

The International Finance Corp., a World Bank Group member, already supports a number of biofuel facilities that are not dedicated to jet fuel in countries such as Peru, India and Nicaragua. It also already offers support for a few jet fuel projects in the private sector.

"We finance jet fuel, we finance biofuel. ... If we would need projects with positive greenhouse gas reductions, then I would say that's something international organizations can look at [as a source of financing]," Schlumberger said.

Help needed for first refinery

More and more biofuel refineries are making renewable jet fuel, but in a piecemeal fashion, said Bruno Miller, alternative fuels expert at Metron Aviation Inc. "What we need is to finance the first [dedicated] plant ... then the second one will be easier," he said.

"Airlines don't really have the muscle to finance one of these facilities on their own," he added.

But securing funds from the World Bank comes with a number of caveats.

First of all, any World Bank project that involves alternative fuels must be focused on building a policy framework for developing countries, not on propping up a mature industry, said Schlumberger. "We are not going out to finance for Delta Air Lines," he said.

A World Bank project must also result in less greenhouse gas emissions. Ensuring that a biofuel does indeed reduce emissions is the main challenge in making the case for biofuels at the World Bank, said Schlumberger.

Based on a life-cycle analysis, some types of jet fuel are more or less polluting than others. A hydroprocessed renewable jet fuel made from palm oil, for instance, burns with about the same carbon intensity as most other biofuels but has a far greater overall impact on emissions because it requires a major amount of land-use change.

"The World Bank Group will be very limited to finance biofuel projects that result in no greenhouse gas reductions or even in an increase. So if we look at the production of biofuels -- in general, not just in aviation -- that is a very important aspect," Schlumberger said.

Another challenge is finding biofuel projects that don't compete with food crops or deplete water resources; otherwise, it could raise issues on a global scale, he added.

Using a biofuel made only from jatropha to meet the global aviation industry's current fuel needs would require farming the entire country of Argentina, he said. Producing the same amount of fuel from camelina would take up the area of Mexico, while making jet fuel from algae -- a promising but nascent pathway -- would take up the area of Ireland.

Despite these hurdles, the World Bank continues to explore opportunities to finance sustainable liquid alternative fuels in developing countries as part of its energy strategy, said Schlumberger, which means it could soon get on board with renewable jet fuel, too.