New green fuel operation to open at Tesoro

AltAir Fuels of Seattle says it has signed what it calls a landmark agreement with 14 major airlines that will use the renewal fuel, reducing carbon emissions by about 14 billion pounds over 10 years.

The "announcement reinforces the proactive steps that airlines are taking to stimulate competition in the aviation fuel supply chain, contribute to the creation of green jobs, and promote energy security through economically viable alternatives that also demonstrate environmental benefits," said Glenn Tilton, board chairman of the Air Transport Assocation and United Airlines chairman, President and CEO.

Camelina oil will be converted into both renewal jet fuel and diesel at a new facility to be located at the existing Tesoro oil refinery in Anacortes. Based on analysis of US Department of Agriculture data for comparable projects, AltAir estimates the project will create hundreds of jobs in a variety of industries, including farming and agricultural logistics, engineering and construction, and operations, maintenance and refining.

The new facility will have a capacity of 100 million galls per year and is slated to begin operations in 2012. The camellia oil will come from Montana-based Sustainable Oils, which has the largest camellia research program in North America.

AlrAir Fuels was formed in 2008nto develop projects for the production of jet fuel from renewable and sustainable oils.