Boeing has been looking at what the US government could do to stabilise pricing for renewable jet fuel, and standby loans are one strategy the manufacturer has been promoting on Capitol Hill.
Alternative fuels need to be price competitive with standard jet fuel to make a business case for biofuels, but that is difficult when petroleum fuel costs are unstable, says Billy Glover, Boeing managing director for environmental strategy.
Loans could be made available to firms producing renewable fuels if the price of oil falls below a certain threshold, Glover says. If the price of oil rises above a certain level, renewable fuel firms would pay back loans. He notes legislation is "probably the appropriate vehicle" for standby loans.
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In addition to standby loans, Boeing is pushing for fuel efficiency standards for new aircraft types.
Standards should be based on aircraft size but the International Civil Aviation Organisation should work out the details, as it has done with noise pollution and nitrous oxide, Glover says.