Emily McConochie, Isabela Becattini, Callum Thomas University of Queensland The Facts In 2012/13: 2% 26% operating costs 98% from Jetfuel h u m a n
e m i s s i o n s +$50 Billion The Real Cost Vulnerability Market Instability Future oil prices A NEW Carbon emission tax? Opportunity Stop soaring costs Nurture a fledgling industry -> BIG Business Support local jobs Protect the environment LEADERSHIP within Australian Market Who are the Heroes? Virgin Atlantic: first biofuel test flight 2008 KLM: First Commercial flight 2011 Canada: First Jet flight 100% 2012 Qantas: Eco-Pioneer Airline of the Year Which Firsts? Achievements to DRIVE CHANGE 40% Biofuels 2050 International Demands The International Air Transport Association (IATA), to which Australian airlines belong, has set aggressive emissions reduction goals, including the target of carbon neutral growth in the industry beyond 2020. Virgin Sustainability Program Young and fuel efficient fleet - average age of 4.9 years Fleet renewal program Partnerships to the development of biofuels. Is that enough? What are other companies doing? Air Transport World Eco-Aviation Awards 2013: Qantas won Eco-Pioneer Airline of the Year category. - Recognition of its long-standing environment strategy and leadership of the aviation industry. What has been Virgin doing in order to achieve that? Virgin need to take more risks. UQ research - Biofuels sector has the potential to become competitive with jet fuel sourced from oil - but only if targeted investments are made. - Sugarcane remains the most promising: - higher fermentation yields could lower the viability benchmark to $168 a barrel. - cost no longer as stratospheric, especially if potential for future global carbon prices are added. - 40% oil content pongamia seeds, would need a crude oil price of $374 per barrel. - the potential to drop to $255 if seed-oil content can be increased. - Microalgae remains a long shot, needing a $1343 per barrel oil price to be competitive - improved harvesting processes could reduce by more than two-thirds, to $385 per barrel. Isn't that amazing? And Virgins opportunity is right here! Increasing funding to UQ research and industry development you can be the airline in the world that makes biofuels for aviation a viable and competitive option. What can you do? 1. Concrete action to establish a biofuels industry Australian biofuel industry: feasible, cost-effective, desirable Current support is great, however more action is needed next level: infrastructure grants & investments to support startup industry 2. Establish an internal Biofuels Panel Cross-departmental: pilots, engineers, experts, industry. Follow example of Virgin Atlantic Fuel Efficiency Panel Develop concrete timeline of targets for implementation 3. Appoint an appropriate executive representative not just a sustainability issue time to branch out key part of strategic planning for future Conclusion Question is not should we? but how quickly can we? potential to become leader of innovation in Australia competitors (QANTAS) already moving ahead now is the time to act existing partnerships give Virgin Australia a great advantage partnerships + executive leadership + concrete timeline and goals = upper hand for the future!