Delta Airlines passenger jets like this one could some day be fueled by camelina-based biodiesel. (Photo: Courtesy of Delta Airlines)

AltAir will produce up to 100 million gallons of camelina-based biofuel annually for the airline industry.

As news trickles out of the industry that biofuel companies are still on shaky ground after the economic downturn, a coalition of fourteen of the world's largest airlines--both passenger and cargo carriers--have provided a much-needed spark to the struggling industry by signaling their interest in a plant-based biodiesel

Seattle-based start-up AltAir Fuels has secured several memoranda of understanding with airlines to negotiate the purchase of jet fuel and diesel derived from the camelina plant, a weed in the mustard family that produces seeds with a high oil content. AltAir's agreement with the airlines will eliminate 14 billion pounds of C02 emissions over the next 10 years

A lifecycle analysis of camelina by Michigan Tech University has shown camelina reduces carbon emissions by about 80 percent compared to petroleum fuel.

In addition to it being cleaner burning, camelina oil is only usable as a source of renewable fuels, so it is relatively inexpensive as a fuel source. Camelina is also grown in rotation with existing crops like wheat, thereby not displacing food crops and driving up the cost of crops like corn, wheat and soybeans.  AltAir is targeting a price to airlines of about $2.50 U.S. a gallon.

Based on analysis of U.S. Department of Agriculture data for comparable projects, AltAir estimates the project will create hundreds of jobs in a variety of industries, including agriculture, engineering and construction, system operations, maintenance and refining.

The plant-based fuel will be blended with petroleum jet fuel and piped to Seattle-Tacoma International Airport for use in aircraft and heavy machinery. AltAir said it expects the initial production capacity of the facility to be 75 million gallons per year, beginning in 2012 and ramping up to 100 million gallons annually. At full output, AltAir could replace up to 10 percent of the petroleum-based fuel consumed annually at Sea-Tac.

Led by the Air Transportation Association, the nation's largest and oldest airline industry trade group, the airlines that signed agreements are: Air Canada, American Airlines, Alaska Airlines, Atlas Air, Delta Air Lines, FedEx Express, Hawaiian Airlines, Jet Blue Airways, Lufthansa German Airlines, Mexicana Airlines, Polar Air Cargo, United Airlines, UPS Airlines and US Airways.