JOHNSTON, Iowa — Iowa and Indiana corn growers have partnered with key corn and corn stover supply chain groups, as well as Purdue University researchers, to review the potential economics behind the innovative market of aviation biofuel.

“This effort is a great example of how corn growers can work with their corn ethanol customers to advance the use of renewable fuels,” said Shannon Textor, Iowa Corn Promotion Board (ICPB) director of market development.

The two states’ corn checkoffs – the Indiana Corn Marketing Council (ICMC) and the ICPB – are funding the project, with airline behemoths Boeing, United Airlines and Honeywell UOP contributing technical expertise and financial support.

In late June, representatives from these three, the Chicago Department of Aviation and the Clean Energy Trust – along with an advisory council of more than 40 public and private organizations, chaired by Argonne National Laboratory – formed the Midwest Aviation Sustainable Biofuels Initiative (MASBI) in Chicago.

According to a June 27 MASBI report: “The commercial aviation industry has a clear path toward cleaner, more economical and more secure energy alternatives through the increased use of advanced biofuels developed in the Midwest.” The report followed a yearlong analysis of the benefits that could be derived from what it called “a robust sustainable aviation biofuels industry in the Midwest.”

Wally Tyner, Purdue University professor of agricultural economics, is leading the project to develop a complete economic analysis of the production of aviation biofuel from Midwest corn stover. In addition, the project will evaluate policy options which could be enacted to provide momentum for the biofuel industry.

Last year, 21.5 billion gallons of aviation jet fuel was used, according to U.S. corn industry experts, with biofuel potentially meeting up to half that demand in the future.

With the use of biofuel already in more than 1,500 commercial aviation flights globally, the MASBI agreed “more must be done to achieve the sustainable production of commercial-scale and cost-competitive advanced biofuels from sources such as non-food crops and waste products.”

Issuing its report at a summit of aviation and energy experts, biofuel developers, environmental organizations, government officials and research institutions, the MASBI’s recommendations included:

•Streamlining the approval process for new biofuel production methods

•Leveling the policy playing field for advanced biofuel with the conventional petroleum industry

•Tailoring agriculture products such as oilseed crops for jet-fuel production

•Improving biofuel production through agricultural innovation

•Pursuing deal structures that balance risk and reward for early adopters of technology

“We’ve been developing a new industry – one that has the ability to reduce carbon emissions, create green jobs, drive innovation in clean technology and bolster the successful future of the airline industry, which is vital to communities all around the world,” said Jimmy Samartzis, managing director of global environmental affairs and sustainability for United Airlines.

“We need to focus on this today, so that we can have these options tomorrow as we build a more sustainable future.”

The report also stated: “Expanding the availability of sustainable aviation biofuels will have clear business benefits for the airline industry and the broader Midwest economy. From 1990-2012, fuel costs increased by 574 percent and are now the single largest expense for commercial aviation, accounting for up to 40 percent of an airline’s operating budget.

“Commercial aviation spends $6.3 billion on jet fuel a year for flights originating in the Midwest. The MASBI estimates that replacing 5 percent of petroleum jet fuel in the Midwest with aviation biofuel would create more than 3,600 jobs and reduce carbon dioxide emissions by 700,000 tons.”

Samartzis said, “The Midwest can be a leader in this effort because it boasts the experience, technological innovation and resources to do so. The impact of MASBI goes well beyond the Midwest and influences the development of the advanced biofuels industry nationally and globally.”

Rosalind Leeck, ICMC director of biofuels, added “this economic analysis will build upon other research the Indiana corn checkoff has supported on stover collection, storage and transport, and reveal potential market opportunities for corn farmers while offering environmental benefits for the aviation industry.”

The MASBI’s research was slated to be completed by late July. “Our airports can be a catalyst, facilitator and an advocate for this critical new biofuel technology,” said Rosemarie S. Andolino, commissioner for Chicago Department of Aviation.

“Working with private industry, academic institutions and nonprofits, the public sector provides an important voice in the policy dialogue relating to biofuels and aircraft emissions.”