Continental, Boeing and GE Announce Biofuels Demonstration

Continental Airlines (NYSE: CAL), Boeing (NYSE: BA) and GE Aviation (NYSE: GE) announced plans to conduct a biofuels demonstration flight in the first half of 2009 in an effort to identify sustainable fuel solutions for the aviation industry.

The biofuel flight will use a Boeing Next-Generation 737 equipped with CFM International CFM56-7B engines. CFM is a 50/50 joint company of General Electric Company and Snecma (SAFRAN Group). In the months leading up to the flight, Continental, Boeing and GE will work together and with an undisclosed fuel provider to identify sustainable fuel sources that don’t impact food crops, water resources or contribute to deforestation, and which can be produced in sufficient quantities to support a pre-flight testing, the companies said in a release.

"Continental is taking an important step in advancing the use of sustainable biofuels in aviation," said Scott Donnelly, president and CEO of GE Aviation. "Working with our jet engine team at CFM International, GE has considerable experience in evaluating biofuels in jet engines for aviation and in aeroderivative engines for marine and industrial applications. GE and CFM are eager to get started in supporting Continental’s exciting program."

Sustainable biofuels for aviation incorporate second-generation methodologies relative to fuel source selection and processing, which are uniquely suited for aerospace use. These biofuels can then be blended with kerosene fuel (Jet-A) to reduce dependency on fossil fuels.

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