While much has been written about alternative fuels for jet aircraft, an almost ignored corner of the aviation world is about to be converted to bio-fuels in late 2012 when eight airlines will begin using bio fuels for ground equipment. The switch over results from a deal with Rentech, Inc and Aircraft Service International Group (ASIG) to purchase up to 1.5 million gallons annually for renewable synthetic diesel fuel.

The deal, the first of its kind in the aviation industry, is centered on Los Angeles International, close by the proposed Rentech plant in Rialto which is scheduled to go online in 2012. Financial details were not disclosed.

Alaska, American, Continental, Delta, Southwest, United, UPS and US Airways are part of the deal to purchase RenDiesel, the first of what Rentech, which produces synthetic fuels and fertilizer, expects to be many airlines. The fuel is manufactured with “urban, woody green waste” such as yard clippings diverted from land fills and sewage sludge and is expected to have a low carbon footprint and minimal particulate and other emissions while still meeting or exceeding fuel standards. The deal, announced by the Air Transport Association, includes fuel supplier ASIG which will handle both receipt and dispensing of RenDiesel. Other discussions regarding potential alternative fuels agreements are continuing through the Commercial Aviation Alternative Fuels Initiative, of which ATA is a founding member.

“We are proud to take part in this innovative, collective endeavor that over time, will further reduce greenhouse gas emissions and improve local air quality through the use of greener fuels,” said Glenn Tilton, ATA board chairman and UAL Corporation chair, president and CEO. “This transaction promises to be the first of many such green fuel purchase agreements by the commercial aviation industry. It exemplifies the ongoing commitment of airlines and energy suppliers to diversify our fuel sources while contributing to a cleaner environment and adding new jobs to the economy.”

D. Hunt Ramsbottom, Rentech president and chief executive officer, expects the LAX agreement to serve as a model for such relationships at other airports and for other fuels, including Rentech’s jet fuel, recently approved for commercial airline use by an August 5 ruling by standards-setting board, ASTM International for use as aviation-grade jet fuel. RenJet was approved as a 50/50 blend of synthetic Fischer-Tropsch jet fuel. The company is planning a nearly $5 million, Mississippi-based facility to produce RenJet after the RenDiesel plant goes on line. The aviation jet fuel facility will be capabable of producing 28,000 barrels of RenJet daily as well as 560 MW of electricity which will be diverted to the grid. Currently there are no synthetic jet fuel producers.

Production for RenDiesel is expected to be 600 barrels per day, 100 of which will go to the LAX project. The Rialto plant will also produce 35 MW of electricity for the grid and for its own fuel making process.

The deal comes a year after the Sustainable Aviation Fuel Users Group consortium began requiring members to use bio fuels from non-food sources with minimal environmental impact. The consortium includes Air France-KLM, Boeing and Honeywell’s UOP subsidiary, as well as Air New Zealand, All Nippon, Cargolux, Gulf Air, Japan Airlines, SAS and Virgin Atlantic.

“This commercial purchase contract among Rentech, ASIG and the airlines validates the growing demand for synthetic fuels produced by the Rentech Process,” said Ramsbottom.. “The low-emissions profile and near-zero carbon footprint of our renewable RenDiesel will guarantee that the LAX ground service vehicles using this fuel will be among the cleanest and greenest of their kind.”

“This collaborative effort is yet another environmentally friendly initiative that we and the airlines are pursuing at Los Angeles-area airports. It shows what we can accomplish by working together toward a common and necessary goal,” said Gina Marie Lindsey, executive director of Los Angeles World Airports (LAWA).

Rentech’s Rentech-SilvaGas biomass gasification process can convert multiple biomass feed stocks into synthesis gas (syngas) for production of renewable fuels and power. Combining the gasification process with Rentech’s application of proven syngas conditioning and cleanup technology and the patented Rentech Process based on Fischer-Tropsch chemistry, Rentech offers an integrated solution for production of synthetic fuels from biomass. The Rentech Process can also convert syngas from fossil resources into ultraclean synthetic jet and diesel fuels, specialty waxes and chemicals. Final product upgrading is provided under an alliance with UOP, a Honeywell company. Rentech develops projects and licenses these technologies for application in synthetic fuels and power facilities worldwide.

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