X-Prize to Fuel Aviation Alternatives

July 10, 2008 - Thanks to a grant from the Federal Aviation Administration (FAA), the organization that helped encourage private enterprise to tackle the final frontier is now setting its sights on commercial aviation.

Transportation Secretary Mary Peters announced today that the FAA is teaming with the X-Prize Foundation to craft a strategy for creating financial incentives for developing alternative, renewable aviation fuels. Peters made the announcement during an address before members of the American Association of Airport Executives (AAAE), which is holding an energy and air service summit in Washington, D.C.

"The race to refuel American aviation is on, and our hope is that the X-Prize will jump-start investment and spur innovation," said Peters. "It will be a competition that everyone wins, because a breakthrough in alternative jet fuels is a potential game-changer that could bring lower airline fuel costs, greater U.S. energy independence, and cleaner air."

The first Ansari X-Prize, totaling $10 million, was awarded in 2004 to the team behind the successful launch of SpaceShipOne. Competition for the prize, however, generated a tenfold investment in manned commercial suborbital spaceflight. Since that time, three additional X-Prizes have been launched in the areas of genomics (the study of genomes), lunar exploration, and automotive transportation. Peters observed that such cash competitions are in the "best tradition" of American aviation.

"Prizes and awards helped the young industry take off," she said. "[At the turn of the century], they attracted new investors and aviators determined to set new records for altitude, for speed, and for distance." In fact, she said, Charles Lindbergh scored a $25,000 Orteig prize for his solo trans-Atlantic flight in 1927. "That was huge money, back then, she said, noting that the X-Prize will bring new creativity and innovation to the development of alternative fuels.

The secretary's sentiments were echoed by Dr. Peter Diamandis, X-Prize Foundation chairman and CEO. "Clean fuels are critical to maintaining our productivity as a society, and we are thrilled to receive this funding to explore options for alternative aviation fuels," he said. "In working with this grant, the X-Prize Foundation will utilize its comprehensive capabilities in the areas of energy and the environment, including clean fuels, renewable power, efficient homes and buildings, and environmental protection."

Alternative fuels development is a key component in the FAA's NextGen program, as well as part of the agency's overall strategy to zero-out the growth rate in aviation carbon emissions. With NextGen expected to double National Air Space (NAS) capacity by the year 2025, alternative aviation fuels made from renewable, non-fossil sources have the potential to offset the greenhouse gas emissions associated with the increase in air traffic.

Over the next 14 months, the X-Prize Foundation will consult with industry experts to identify prize sponsors, while developing a strategy for implementing prize incentives in coordination with NextGen efforts.

By providing incentives to the best minds in the aviation and science communities, the FAA and the X-Prize Foundation hope to speed up current alternative fuels development efforts, while avoiding pitfalls such as displaced food production or changes in land use that might lead to increases in the very greenhouse gas emissions the fuels are intended to curb. The Foundation has also been tasked with developing a strategy that would allow cost-effective, environmentally friendly alternative fuels to be rolled out at a faster pace than might otherwise be possible in the free market.

The FAA and X-Prize expect that the competition will likely occur over three to eight years, taking into account the difficulty of the task, but also maintaining the interest of potential inventors as well as the public.

"Again and again, aviation has shown this nation its resilience," concluded Peters. "I am confident that, even with the difficult times that we are now facing, this industry — with the right incentives — can retool, refuel, and cope with any kind of crisis that faces us today, or into the future."