Australia-based Algae-Tec is not Lufthansa’s first biofuel source. The same week it inked the deal with Algae-Tec, Lufthansa also entered into a memorandum of understanding with synthetic fuel developer Solena Fuels Corporation. Solena has already decided on a location at the PCK Industry Park in Schwedt/Oder, Germany. The plant will use municipal waste to produce bio synthetic paraffinic kerosene, which Solena calls Bio-SPK.
Lufthansa is eager to adopt biofuels in order to comply with the European Union’s emissions trading system (ETS), which added aviation to the mix of industries that must reduce carbon emissions in the EU region. Airlines had until March 2012 to reach compliance to the EU standards. In the future, airlines that do not comply could face fines of US$128 per ton of carbon dioxide emissions. Non-compliance could lead to a ban from European airports. It is not surprise that According to the U.S. Energy Information Administration, worldwide over 5,000 barrels of jet fuel are used each year, resulting in as much as 635 million tons of carbon dioxide emissions.