"It's Cheaper": Air Peace, Max Air, Others Suggest Palm Oil as Aviation Fuel Cost Hits N1000/L

"It's Cheaper": Air Peace, Max Air, Others Suggest Palm Oil as Aviation Fuel Cost Hits N1000/L

  • Airline operators are asking the Nigerian government to explore the use of palm oil as aviation fuel
  • They say that the high cost of aviation fuel has made it challenging for them to operate
  • The operators reveal that the technology for the conversion of palm oil to aviation fuel is being developed rapidly

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Airline operators have said Nigeria is mature enough to find alternatives for aviation fuel, also known as JetAI, considering the high cost of imports.

The operators called on the Nigerian government Wednesday, October 18, 2023, in Abuja at a meeting on developing and using Sustainable Aviation Fuel (SAF), Low Carbon Available Fuel, and other transparent fuel sources in Nigeria.

Palm Oil, Aviation Fuel
Airline operators ask FG to explore palm oil as alternative fuel source Credit:drolet
Source: Getty Images

Airlines currently use refined kerosene

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Captain Roland Iyayi, who spoke on behalf of Airline Operators of Nigeria, said the country is in a better place to drive alternative fuel sources for the aviation industry by exploring palm oil.

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Aviation fuel is kerosene in its most purified form. A Daily Trust report said that aviation operators are calling for alternative sources due to the sharp increase in the product's price, currently selling at N1000 per litre.

Iyayi revealed that operators in the industry are keenly following trends in the industry, especially talks around sustainable aviation fuel and its vast opportunity for Nigeria, as the main component of sustainable aviation fuel is palm oil.

Iyayi said:

"The technology is currently being developed at a very high rate in the UK, and Nigeria has a comparative advantage because we already have the raw materials in abundance,"

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Iyayi, also the CEO of Topbrass Aviation Limited, stated that fuel constitutes 40% of operating costs for every airline, and with the product selling at N1000 per litre, airlines can longer cope.

Airlines complain of high-cost aviation fuel

He said the Nigerian National Petroleum Company Limited (NNPCL) should champion sustainable fuel and provide a bigger picture that the economy can grow by providing a comparative advantage.

The Topbrass Aviation Limited boss said there is available technology and raw material that Nigeria can exploit and lead the world in alternative aviation fuel.

Festus Keyamo, the Minister of Aviation and Aerospace Development, said the partnership is the only way to allow the development and use of cleaner energy in the aviation industry.

"Several technical analyses revealed that Sustainable Aviation Fuel (SAF) has the greatest potential to reduce CO2 emissions from International Aviation," Keyamo said.

Nigeria suspends airline over fuel contamination

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Cost-effective aviation fuel has recently been on the front burner for airlines in Nigeria, with the airlines stating that they subsidize passengers to keep the industry functioning.

They state that the unavailability of foreign exchange has made the importation of aviation fuel challenging.

Recently, Nigeria reported a case of contaminated fuel in the industry.

Legit.ng reported that the Nigeria Civil Aviation Authority (NCAA) released an informative notice called the All Operator's Letter (AOL), notifying airline operators about fuel contamination occurrences within the aviation sector.

The NCAA took action in response to the identification of a significant amount of water found in the fuel tank of a Max Air aircraft. Consequently, all Boeing 737 aircraft in Max Air's fleet operation was temporarily halted.

In a letter NCAA/DG/AIR/11/16/363, the NCAA directed the suspension of Parts A3 and D45 regarding the operation of Max Air's Boeing 737 aircraft type with immediate effect.

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Part A3 relates to the airline's Aircraft Authorisation, and D43 deals with Aircraft Listing of the Operations Specifications issued to Max Air Limited.

Aviation fuel contamination: FG identifies unlicensed suppliers at airports

Legit.ng reported that the Nigerian Civil Aviation Authority (NCAA) has identified four unlicensed suppliers of aviation fuel, also known as Jet AI, across airports in the country.

The development follows a recent incident of aviation fuel contamination involving a Nigerian airline, which led to its temporary suspension.

According to the regulatory agency, the offenders gained access to the airports without due diligence, stating that the combined efforts of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the NCAA led to the identification and expulsion of the culprits.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng