Flying the Skies on Biofuels

When someone thinks of airlines and them being innovators, they usually refer to creating new fees for passengers. However lately, the airlines are also making inroads in being one of the most environmentally friendly industries across the road.

In Rebecca Dolan’s article published in The Huffington Post earlier this week, Ms. Dolan makes mention of how the airline industry is turning to biofuels as a way to not only reduce their carbon footprint, but save money in the long run. Currently, aviation accounts for 2 percent of human generated Co2 emissions and by turning to a clean energy alternative, it is a good public relations move on their part.

What is also curious to note though is that the biofuels being used by airlines are not from traditional sources such as sugarcane, corn and soybeans but from secondary sources such as camelina, jatropha, agave, castor and algae. While these sources might not seem as well known as some of the aforementioned sources, their ability to grow on marginal land and positively contribute to the long terms health of fields and soils cannot be undercut. By growing these plants on land which would otherwise be bare, farmers increase their revenue stream while allowing potential buyers-such as airlines, to buy up these plants at reduced prices. Additionally, producing these biofuels from non-edible food stuffs eliminates the debate between food vs fuel argument as these crops are not meant for human consumption in the first place.

The other less altruistic reason the airlines are pursuing this course of action is for the all might profit motive. With crude oil being one of the biggest expenses for the industry and the high volatility of the oil market, investing in a stable source of energy allows airlines to be less open to price shocks and thus lead the savings onto the consumer. Should oil ever hit 140 dollars a barrel again, if airlines were to continue this long term investment, customers will be able to still afford to fly keeping both airline executive and busy vacationers happy.

While curbing emissions from airlines should be the first goal of these executives, like I stated in my blog post last week, reframing the debate from altruistic means of protecting the environment to saving money while protecting the environment will be a better argument for corporate America. In the example above, airlines are able to make a good public relations, environmental friendly, and cost cutting move all in one swoop which will appeal to both the shareholders, business travelers, and family vacationers across the globe.