IDB to fund biojet fuel development in the region

The Inter-American Development Bank (IDB) said it has approved a project to help public and private institutions in Latin America and the Caribbean develop a sustainable biojet fuels industry employing different kinds of local organic feedstock.

It said the initiative will fund consultancy services, knowledge development, dissemination material and workshops on the sustainable use and production of biojet fuels, with the goal of demonstrating their feasibility for the local aviation sector, and for potential exports.

The IDB is partnering with the aviation industry stakeholders that are leading the development of alternative aviation fuels, such as the International Civil Aviation Organisation, the Commercial Aviation Alternative Fuels Initiative, and the World Economic Forum, individual airlines, aircraft manufacturers and biofuel technology providers.

It said these institutions and companies are working together on regulations and targets for carbon- emissions reductions with the goal of displacing as much as 50 per cent of jet fuel worldwide by alternative sources by 2050.

"One way for airlines to meet carbon-emissions targets is by purchasing carbon credits. Another is to develop alternative fuels that would help meet the carbon emissions reduction requirements, while helping the industry to be more competitive by reducing fuel price volatility," the IDB said.

Options for alternative fuels in this sector are currently limited because of the technical requirements of jet fuels.

The IDB project will make it possible to explore and develop technologies that will produce feasible substitutes to traditional fuels in the aviation sector.

"This would enable Latin America and the Caribbean (LAC) to play a lead role in the supply of a competitive value-added product, while contributing to local economic development and generating quality jobs.