"Saving the planet one aircraft at a time"
FIRST IN INDUSTRY! SASI Shannon Air Line Services LLC. d/b/a Shannon Aero.
Government policy option and examples of policy cooperation are: Taxes, departure tax, jet fuel and carbon taxes. The carbon tax in the policy agenda is because carbon dioxide emissions contribute to climate change and earth warming, and is a heavy cost. Businesses must continue providing products/services, because there is now no cohesive solution in place. Pollution permits, which allow enterprises to continue polluting, are used to generate revenues to mitigate the cost of remediation, and to encourage the private sector to solve the climate problem sooner rather than later. 4.. Polution permits. Governments favor pollution permits in the aviation sector because they are viewed as market incentives, and are consistent with the approach in CORSIA to CO2 reductions 1 Regulation. 2. Subsidies. 3. Change in consumer behaviour. An example is the concept of energy efficiency tax credits (EETC) for civil aircraft, and power plants in particular, including gas turbine engines modified for near-zero GHG/CO2 emissions, new technology electric motors powered by battery and hydrogen powertrains and fuel cells. Green aircraft commercial tax credit scenarios can take two forms (a) purchase and (b) lease. A conceptual example would be if a EU lessor purchased a new Boeing aircraft, it would benefit from an IRS tax credit, based on the contract purchase price. The IRS would issue the credit to Boeing, and that company would pass on the credit to the lessor by way of a discount on the purchase price. A similar process would apply to the lease transaction, except that the discount is passed on to the lessee, spread over the term of the lease. “Hydrogen is an increasingly popular energy carrier. It can be readily produced from water using renewable electricity, and it burns without any greenhouse gas emissions. It is colorless, odorless, and does not spill. It’s no wonder there is a great interest in hydrogen engines as a part of destination zero.” (Cummings).
The bottom line of an industrywide, coordinated approach to the transition of aviation to a net-zero, circular economy, would be a cleaner energy environment, business expansion, strengthened brand loyalty, and the creation of hundreds of thousands of reskilled and upskilled aviation jobs. Our team will manage your transition to the circular economy for your airline, airport, leasing & finance institutions, including green banking, aircraft remake & assets & engine test platforms, community ESG services, carbon credit tax provisioning & trading, CO2e emmissions & aircraft sustainable revenue maximizing products and services. Green aircraft commercial tax credit scenarios can take two forms (a) purchase and (b) lease. A conceptual example would be if an Irish lessor purchased a new Boeing aircraft, it would benefit from an IRS tax credit, based on the contract purchase price. The IRS would issue the credit to Boeing, and that company would pass on the credit to the lessor by way of a discount on the purchase price. A similar process would apply to the lease transaction, except that the discount is passed on to the lessee, spread over the term of the lease.
Is your company green, greening, greensplaining, greenwashing, or is it green-hiding?
Why We Should Work Together!
How Shannon Aero innovation is leading the way to pollution free aviation.
ICAO CORSIA Scheme is ~40% of the solution because it covers CO2 emissions from the international air transportation sector. Its value as a green technology is limited because the scheme's targets are not mandatory. CO2 is only one of ten primary greenhouse gasses, and the scheme does not address any emissions from aircraft flying domestic routes.
When evaluating the ICAO CORSIA Scheme consider the following: 1. ICAO is a UN independent specialized agency. HQ is Montreal. 2. CORSIA is a market based mechanism (MBM). 3. The scheme is intended to reduce CO2 emissions not other GHGs 4. It is a scheme limited to the air transportation sector. 5. The scheme members are ICAO Contracting States, not airlines. 6. The scheme started in 2017. 7. The scheme ends in 2035 - 12 years. 8. Membership is voluntary. 9. Its targets are aspirational. 10. Of the 196 States that could sign on to it, ~115 have done so. 11. Its value as a green technology strategy is limited. 12. It only deals with CO2 emissions. 13. It applies to international flights only, but not all. The UNFCCC Paris agreement has more robust provisions because" 1. The UNFCCC is a specialized agency of the UN. HQ is in Berlin. 2. The Paris Agreement is a treaty. 3. The treaty is intended to reduce GHG emissions including CO2. 4. The treaty is applicable to all economic sectors. 5. The treaty signaturies are States or Parties to the Convention. 6. The treaty was ratified in 2016. 7. The treaty expires in 2050 - 27 years. 8. It is legally enforcable against the Parties. 9. The treaty terms are legally enforceable. 10. All 196 nation states and the EU are treaty signatories. 11. The treaty terms are derived from scientific research, biofuel, tecnology, operations, and xxxx. 12. The treaty is intended for the regulating of GHG emissions within national boundries, as a component of a country's NDC plan. where aircraft emissions data can be lost in the detail. What does this mean for aviation? The CORSIA Scheme does not assuage growing public concern about fossil fuel based air pollution is pushing air transportation sector into a browning asset class similar to oil, coal, natural gas, cement and mining, which must be avoided at all costs. More transparent, substantial and coordinated action is needed. Shannon Aero's Corporate Good Governance Evaluation, the SASI 5Q Test, the Shannon Aero Climate Action Monitor and our Future Briefs make the difference.
The aircraft market will bifurcate into pre-green and green technology within a decade, making aircraft trading, investor portfolio building & fleet planning decisions more complex than they were pre-COVID.
What if compling with the ICAO/UNFCCC emissions targets do not work? What if the airframe cannot be inmproved? If the geometry of the aircraft airframe is already optimum, them we can expect to see only marginal fuel burn efficieny gains & insufficient GHG emission reductions, from using other shapes such as the blended-wing (Delta/flying-wing) fuselage. If engine fuel burn efficiency can only be improved marginally through advances in technology, what then? If considered from an objective scientific point of view the conclusion would be that the technology has matured and is in need of replacment, for the problem of GHG emissions is to be addressed successfully. If no replacement propulsion technology is feasible before 2035, then the solution would have to be found in quantum gains in energy efficiency. Sustainable Aviation Fuel (SAF) falls short of that potential as it emits GHGs also. The blended-wing is a symmetrical triangular shaped body designed to fly at subsonic or supersonic speeds. The blended-wing is considered to be the most efficient aircraft design, because of its drag reduction benefits. However, it has counterbalancing weaknesses. On the positive side it is lighter than the wing and barrell. This is because the fuselage and wing are blended into a single body. In this way the entire aircraft provide the lift required for flight. The full fuselage space can be designed to carry more fuel, avionics, passengers and cargo. It also has drag coefficient benefits. This is composed of two parts - drag coefficient and induced drag. The drag coefficient includes the effects of skin friction and shape (form). The induced drag is produced at the wing tips due to aircraft lift as the lift below the wing is drawn on to the top near the wing tips, creating a swirling flow. In turn this changes the angle of attack along the wing and "induces" a drag on it. The induced drag coefficient is equal to the square of the lift coefficient (Cl) divided by the quantity: pi (3.14159) times the aspect ratio (Ar) times an efficiency factor (e). The aspect ratio is the square of the span divided by the wing area. For a rectangular wing this reduces to the ratio of the span to the chord. Long, slender, high aspect ratio wings have lower induced drag than short, thick, low aspect ratio wings. Lifting line theory shows that the optimum (lowest) induced drag occurs for an elliptic distribution of lift from tip to tip. The efficiency factor (e) is equal to 1.0 for an elliptic distribution and is some value less than 1.0 for any other lift distribution. For a rectangular planform, like the Wright brothers wings, e = .7 . The total drag coefficient is equal to the drag coefficient at zero lift (Cdo), plus the induced drag coefficient.The drag coefficient can be reduced with laminar flow control, which reduces the growth of turbulence over the wing by sucking a little air through small perforations in the surface (Braslow, 1999). The potential fuel burn efficiency improves because laminar flow control in a new aircraft design means that the airframe drag coefficient would improve by 18% (Green, 2006). If transport cost is proportional to the square root of the drag coefficient, operating cost saving of ~9%. This gross transport cost is the energy cost of moving weight around, including the weight of the plane itself. To estimate the energy required to move freight by plane, per unit weight of freight, divide by the fraction that is cargo. For example, if a full 747 freighter is about 1/3 cargo, then its transport cost is 0.45g, or ~1.2 kWh/ton-km. This is just a little bigger than the transport, cost of a truck, which is 1 kWh/ton-km. Staying within the terms of the ICAO CORSIA Scheme and the UNFCCC Paris Agreement until they are reviewed in 2027, may not be enough to prevent legislated enforcement of higher standards, if they are not producing the desired emissions reduction results. Countries like France and Belgium are implementing regulations to enforce a switch from domestic air travel to rail, the effect of which will likely be market shrinkage. If this strategy takes hold across the EU then the global air transportation market will likely stagnate or skrink. The ripple effect would be that airlines would need fewer regional and short/medium aircraft, and the market to soften. The leasing market would be exposed to lower lease rates, or fewer leases. A good preventive strategy for lessors would be to focus on asset value-gap prevention and recapitalization. The OEM supply chain strategy will have to factor in lower output or a stretched delivery schedue, further complicating their focus on rebuilding the production line, addressing materials shortages, AI technology integration and labor force upskilling.
Tools for the Job
How it works
It begins with the Shannon Aero Corporate Good Governance Evaluation.
It is followed by the SASI 5Q Test.
Airlines, airports, banks, investors & lessors use the SASI 5Q Test to develop transition plans to reach Net-Zero-CO2 emissions & to produce aircraft decarbonization revenues.
Get ahead of the market, and win market creditability by implementing the new IPC administrative accounting system. Internal Carbon Pricing ICP is a system in which airlines, MROs, repair shops, and lessors, voluntarily put a monetary value on the amount of CO2 they remove with decarbonized assets. With the insights gained from the evaluation and test, and feedback from client management, Shannon Aero assigns the resources needed to green your business.
Client follow-up support is based on Shannon Aero Climate Action Monitor & Future Briefs.
With respect to climate and environmental finance, and eco-investing we emphasize to the aviation value chain that in answering the 5Q Test, aircraft can be evaluated by institutional investors subject to fiduciary duties of prudent investment, including the duty to diversify.
"Abandoned and stranded brown assets can hold value and act as a hedge, if the world fails to transition to the low carbon, green economy."
Investors may make the decision to hold, because aircraft may be rationalized as producing greater profits over the long-term. The invest/disinvest decision may be complex through to 2030.
Shannon Airline Services research unit has prepared a Power Point Presentation that discusses aviation’s GHG reduction strategies and action plans. These strategies and plans are needed to respond to what the UN Secretary-General António Guterres called the “triple global crisis” of food, energy, and finance, and because capping the rise in global temperatures to 1.5oC above pre-industrial levels by 2050 is “on life support,” he said, when speaking at the Leaders’ Roundtable during the September 2022 UN General Assembly high-level week, ahead of the UN Conference of the Parties (COP27) in Egypt. "With the world still struggling to get global warming under control, diplomats will be XXXX in the UAE (United Arab Emirates) for United Nations climate talks from Nov.30 through to Dec. 12., 2023, which is already a controversial event because the UAE has appointed Abu Dhabi oil minister as president designate of the COP28 climate summit.* NTY & CNBC.