Rolls-Royce, British Air to look at alternative fuels

The London-based Rolls-Royce Group (LON: RR) said today it has teamed up with Middlesex, England's British Airways (LON: BAY) to investigate the viability of alternative fuels for the aviation industry.

The Rolls-Royce, British Airways team-up is the latest in a growing list of companies looking into new fuels for aircraft.

Last month, Tokyo-based Japan Airlines announced that it's planning a demonstration flight using second generation biofuel, which would be the first such demonstration by an Asian carrier (see Japan Airlines plans cellulosic biofuels flight).

Houston-based Continental Airlines (NYSE: CAL) and the U.K.'s Virgin Atlantic are also working on biofuel-powered flight tests.

Rolls-Royce and British Airways said they will initiate a joint tender process, inviting suppliers to offer alternative fuel samples for testing on a Rolls-Royce RB211 engine from a British Airways Boeing 747.

The types of biofuels they'll be looking at was not disclosed, but Ric Parker, director of research and technology at Rolls-Royce, said, "The key criteria for the selection of the alternative fuels will be their suitability, sustainability and industrial capability."

"It is critical that the fuel can not only do the job required of it, but can also offer a CO2 benefit and be produced without a detrimental impact to food, land or water. There must also be clear evidence of the potential for mass production and global distribution of an alternative fuel to support the world's aviation industry."

The tests will be conducted on an indoor engine test bed at the Rolls-Royce facility in Derby, England.

Following the tender process, Rolls-Royce said there will be a selection of up to four alternative fuels, which will undergo laboratory testing before being delivered to the company in the new year. Each company will be asked to supply up to 60,000 liters of their alternative fuel.

Jonathon Counsell, head of environment at British Airways, said, "Should the tests we are undertaking with Rolls-Royce be successful, the potential for bringing us closer to a greener fuel alternative that will help the aviation industry reduce its carbon footprint is enormous."

Testing is expected to be complete by the end of March 2009.