May 17, 2020

Sustainable jet fuel is taking off in London with BA

British Airways
Oxford Catalysts Group
Fluor
Solena Fuels
Freddie Pierce
2 min
BA will buy the new biofuel for the first decade
Follow @Ella_Copeland British Airways (BA) and Solena claim to be one step closer to their goal of producing sustainable jet fuel following new partner...

British Airways (BA) and Solena claim to be one step closer to their goal of producing sustainable jet fuel following new partnerships for their GreenSky London initiative.

Following a confirmation of BA’s financial commitment, the GreenSky London project will go ahead, which will see the construction of a state of the art facility that will convert approximately 500,000 tonnes of waste into 50,000 tonnes of sustainable low carbon jet fuel, 50,000 tonnes of biodiesel, bionaptha and renewable power.

Operational by 2015

The partners aim to make GreenSky London operational by 2015, and have signed an exclusive option on a site for the facility and consent work for the site has begun. More than 150 jobs will be created to operate the facility, as well as 1000 construction positions.

British Airways has committed to purchasing, at market competitive prices, the jet fuel produced by the plant for the next ten years which equates to US$500 million at today’s prices. has also been appointed as advisor to explore the optimal funding through Export Credit Agencies. A Competitive Letter of Interest has been obtained from one of the Agencies including associated term funding.

Different elements of the project will be provided by different companies in the partnership:

  •             Solena Fuels Corporation will provide the high temperature gasification process that converts waste matter into synthesis gas and the overall Integrated Biomass Gasification to Liquids (IBGTL) solution,.
  •             Oxford Catalysts Group/Velocys will supply the Fisher-Tropsch (FT) reactors and catalyst which will convert the cleaned synthesis gas into liquid hydrocarbons
  •             Fluor has started the pre-front end engineering and design (Pre-FEED) for the project. Fluor is a world leader in project execution and bio-fuel projects, and is providing engineering services to support Solena.

Keith Williams, chief executive of British Airways, is ‘delighted’ the project is going ahead.

“We are delighted that the GreenSky London project is getting ever closer to fruition. With world-class technology partners now in place, we are well on our way to making sustainable aviation fuel a reality for British Airways by 2015,” he said.

Robert Do, President and CEO of Solena, said: “Our GreenSky London project will provide clean, sustainable fuels at market competitive prices that will help address British Airways’ sustainability goals. The British Airways off-take agreement represents the largest advanced biofuel commitment ever made by an airline and clearly demonstrates the airline’s leadership and vision in achieving its carbon emission reduction targets. We are proud to have created a consortium of world class companies with expertise in the synthetic fuels sector to support our project.”

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Jun 19, 2021

Driver shortages: Why the industry needs to be worried

Logistics
SCALA
supplychain
Brexit
Rob Wright, Executive Director...
4 min
Logistics professionals need urgent solutions to a shortage in drivers caused by a perfect storm of Brexit, COVID-19 and compounding economic factors

While driver shortages are a global problem, with a recent survey from the International Road Transport Union suggesting that driver shortages are expected to increase by 25% year-on-year across its 23 member countries, the issue has very much made itself felt for UK businesses in recent weeks. 

A perfect storm of factors, which many within the industry have been wary of, and warning about, for months, have led to a situation wherein businesses are suddenly facing significant difficulties around transporting goods to shelves on time, as well as inflated operating costs for doing so. 

What’s more, the public may also see price rises as a result due to demand outmatching supply for certain product lines, which in turn brings with it the risk of customer dissatisfaction and a hit to brand and stakeholder reputation. Given that this price inflation has been speculated to hit in October, when the extended grace period on Brexit customs checks comes to an end, the worst may be yet to come.

"Steps must be taken to make a career in the industry a more attractive proposition for younger drivers, which will require a joint effort from government, industry bodies, and the sector as a whole"


That said, we have already been hearing reports of service interruption due to lack of driver availability, meaning that volumes aren’t being transported, or delivered, to required schedules and lead times. A real-world example of this occurred on the weekend of 4-6 June with convenience retailer Nisa, with deliveries to Nisa outlets across the UK affected by driver shortages to its logistics provider DHL.

But where has this skills shortage stemmed from? 

Supply is the primary issue. Specifically, the number of available EU drivers has decreased by up to 15,000 drivers due to Brexit alone, and this has been further exacerbated by drivers returning to their home country during the COVID-19 pandemic, as well as changes to foreign exchange rates making UK a less desirable place to live and work. This, alongside the recent need to manage IR35 tax changes, has also led to significant inflation in driver and transport costs.

COVID-19 complications have also meant that there have been no HGV driver tests over the past year, meaning the expected 6,000-7,000 new drivers over the past year have not appeared. With the return of the hospitality sector we understand that this is a significant challenge with, for instance, order delivery lead times being extended.

It is little surprise, therefore, that the Road Haulage Association (RHA) earlier this month became the latest in a long line of industry spokespeople to write to the government about the driver shortage for trucks. The letter echoed the view held by much of the industry, that the cause of this issue is both multi-faceted and, at least in some aspects, long-standing. 

So, many in the industry are in agreement as to the driving factors behind this crisis. But what can be done? 

Simply enough, outside of businesses completely reorganising their supply chain network, external support is needed. In the short-term, the government should consider providing the industry with financial aid, and this can also be supported more widely with legislative change. 

Specifically, immigration policy could be updated to place drivers on the shortage occupations list, which would go some way towards easing the burden created by foreign drivers returning to their home countries. Looking elsewhere, government should also look for ways to increase the availability of HGV driver tests after the blockage created by the coronavirus lockdowns.

Looking more long-term, steps must be taken to make a career in the industry a more attractive proposition for younger drivers, which will require a joint effort from government, industry bodies, and the sector as a whole. As it stands, multiple sources suggest that the average age of truck drivers in the UK is 48, with only one in every hundred drivers under the age of 25. We must therefore do more to increase the talent pipeline coming into the industry if we are to offset more significant skills shortages further down the line. 

On the back of a turbulent year for the supply chain industry, it has become increasingly clear that the long-foretold shortage of drivers is now having a tangible and, in places, crippling effect on supply chains. 

Drivers, and the wider supply chain industry, have rightly been recognised for the seismic role they played in keeping the nation moving and fed over the past year under unprecedented strain. If this level of service is to continue, we must now see Government answer calls to provide the support the sector needs, and work hand-in-hand with the industry to find a solution. If we do not see concrete action to this effect soon, we are likely to be in for a turbulent few months. 
 

Rob Wright is executive director at SCALA, a leading provider of management services for the supply chain and logistics sector

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