1 00:00:03,000 --> 00:00:09,799 Speaker 1: From Bloomberg News and iHeartRadio. It's the big take. I'm 2 00:00:09,800 --> 00:00:27,639 Speaker 1: West Kasova today, how to build a cleaner airplane? We 3 00:00:27,720 --> 00:00:31,160 Speaker 1: all know airplanes are big polluters, and with so many 4 00:00:31,200 --> 00:00:34,880 Speaker 1: people choosing to fly more, especially now after being cooped 5 00:00:34,960 --> 00:00:38,680 Speaker 1: up during the pandemic, it's a problem that's only getting worse. 6 00:00:39,760 --> 00:00:43,040 Speaker 1: As is often the case, Europe is taking the lead 7 00:00:43,159 --> 00:00:46,760 Speaker 1: to encourage or you might say pressure, the airlines and 8 00:00:46,840 --> 00:00:49,600 Speaker 1: airplane makers to clean up their act. 9 00:00:50,000 --> 00:00:53,880 Speaker 2: It's a really multifaceted problem. It's not just the technical 10 00:00:54,280 --> 00:00:58,080 Speaker 2: or business side. There's these big societal questions and big 11 00:00:58,120 --> 00:01:00,880 Speaker 2: economic questions for some she's in Europe. 12 00:01:01,120 --> 00:01:05,480 Speaker 1: Bloomberg reporters sit at Phillip in London and William Wilkson Frankfurt. 13 00:01:05,520 --> 00:01:09,080 Speaker 1: That's who you heard just there cover the industry's efforts 14 00:01:09,120 --> 00:01:13,120 Speaker 1: to build a plane that can fly long distances without 15 00:01:13,160 --> 00:01:16,480 Speaker 1: burning fossil fuel. For a sense of just how far 16 00:01:16,720 --> 00:01:19,960 Speaker 1: we have to go, I asked Sid to tell us 17 00:01:19,959 --> 00:01:23,880 Speaker 1: the environmental cost of a typical commercial flight today. 18 00:01:26,280 --> 00:01:28,280 Speaker 3: So a flight from Frankfurt to New York on a 19 00:01:28,319 --> 00:01:31,440 Speaker 3: Boeing seven for seven, which is rare now but it's 20 00:01:31,440 --> 00:01:35,160 Speaker 3: still used. Emits about the same amount of carbon dioxide 21 00:01:35,440 --> 00:01:38,839 Speaker 3: as heating four hundred and forty German homes for about 22 00:01:38,880 --> 00:01:42,520 Speaker 3: a year. That is about two thousand kilograms or four 23 00:01:42,560 --> 00:01:46,080 Speaker 3: hundred pounds per passenger, which is a massive amount of 24 00:01:46,200 --> 00:01:50,760 Speaker 3: carbon dioxide. Airlines are flying hundreds and thousands of planes 25 00:01:50,800 --> 00:01:53,400 Speaker 3: at any given time, and so the scale of the 26 00:01:53,400 --> 00:01:54,560 Speaker 3: problem is massive. 27 00:01:55,760 --> 00:01:57,880 Speaker 1: Will I guess that really sets up what we're talking 28 00:01:57,920 --> 00:02:00,440 Speaker 1: about today, which are these efforts to try to make 29 00:02:00,680 --> 00:02:04,480 Speaker 1: planes less carbon intensive, cleaner to fly. 30 00:02:06,040 --> 00:02:06,280 Speaker 4: Yeah. 31 00:02:06,360 --> 00:02:11,440 Speaker 2: Indeed, European countries, especially bringing in quite stringent climate targets 32 00:02:11,880 --> 00:02:15,760 Speaker 2: and aviations, had something of a free pass up until now, 33 00:02:15,800 --> 00:02:19,360 Speaker 2: but looking forward, countries like Germany or France can't hit 34 00:02:19,440 --> 00:02:23,160 Speaker 2: their climate targets without now tackling this problem. And then 35 00:02:23,200 --> 00:02:28,600 Speaker 2: this really fiendishly difficult problem of reducing emissions from aircraft 36 00:02:28,760 --> 00:02:33,720 Speaker 2: without destroying the aviation sector and without damaging transport connections 37 00:02:33,760 --> 00:02:34,440 Speaker 2: within Europe. 38 00:02:34,480 --> 00:02:35,800 Speaker 4: It's a really difficult problem. 39 00:02:36,440 --> 00:02:39,560 Speaker 3: It's also the airline industry itself has said itself net 40 00:02:39,639 --> 00:02:42,320 Speaker 3: zero targets by twenty to fifty, so it's not just 41 00:02:42,400 --> 00:02:45,760 Speaker 3: the airline industry coming under pressure from the government, but 42 00:02:45,800 --> 00:02:49,040 Speaker 3: they've also set their own targets, which are crucial in 43 00:02:49,160 --> 00:02:51,240 Speaker 3: order for them to sort of decalbanize the net zero 44 00:02:51,280 --> 00:02:52,040 Speaker 3: by twenty fifty. 45 00:02:52,720 --> 00:02:54,960 Speaker 1: So when you say net zero by twenty fifty for 46 00:02:55,000 --> 00:02:56,920 Speaker 1: the entire industry, what exactly. 47 00:02:56,440 --> 00:02:57,000 Speaker 4: Does that mean? 48 00:02:57,600 --> 00:02:59,880 Speaker 3: When it's in nets zero, it basically means that they're 49 00:02:59,919 --> 00:03:03,840 Speaker 3: not putting any new carbon dioxide into the atmosphere. But 50 00:03:04,120 --> 00:03:08,120 Speaker 3: essentially they're using methods to try and reduce carbon emissions 51 00:03:08,400 --> 00:03:11,720 Speaker 3: which are already in the air, bringing back that carbon 52 00:03:12,160 --> 00:03:15,560 Speaker 3: without adding any more, so you don't add any more 53 00:03:15,600 --> 00:03:19,519 Speaker 3: carbon into the air, but also not flying truly zero. 54 00:03:20,800 --> 00:03:22,240 Speaker 1: And will how do you do that? Because we're not 55 00:03:22,280 --> 00:03:25,040 Speaker 1: really talking about planes no longer polluting at all. It's 56 00:03:25,120 --> 00:03:28,040 Speaker 1: kind of they're offsetting it elsewhere. Is that right? 57 00:03:28,840 --> 00:03:32,040 Speaker 2: There are several ways airlines and plane manufacturers talking about 58 00:03:32,040 --> 00:03:35,120 Speaker 2: doing it. One cruiser one of these things called sustainable 59 00:03:35,160 --> 00:03:40,720 Speaker 2: aviation fuels, and they basically recycle carbon that is already 60 00:03:40,880 --> 00:03:43,840 Speaker 2: above ground and turn them into fuels, so you're not 61 00:03:43,920 --> 00:03:47,320 Speaker 2: taking any more carbon from below the ground. So examples 62 00:03:47,360 --> 00:03:51,240 Speaker 2: are things like biofuels, where you kind of turn animal 63 00:03:51,320 --> 00:03:55,040 Speaker 2: fat into a combustible feel. There are even more kind 64 00:03:55,080 --> 00:03:58,440 Speaker 2: of sci fi ones like synthetic fuel where you would 65 00:03:58,480 --> 00:04:01,600 Speaker 2: extract carbon from the atmosphe and combine it with hydrogen, 66 00:04:01,920 --> 00:04:05,360 Speaker 2: and then you make a synthetic hydrocarbon that's very similar 67 00:04:05,520 --> 00:04:09,520 Speaker 2: chemical properties to normal jet fuel, but because the carbon's 68 00:04:09,560 --> 00:04:12,360 Speaker 2: being drawn out of the atmosphere, it's not taking any 69 00:04:12,400 --> 00:04:15,480 Speaker 2: more carbon from below the air. Of course, those fuels 70 00:04:15,480 --> 00:04:18,760 Speaker 2: do generate carbon dioxide when they're burned, and. 71 00:04:18,680 --> 00:04:21,560 Speaker 1: We're going to talk a little bit more about sustainable 72 00:04:21,600 --> 00:04:25,760 Speaker 1: aviation fuel later in the show. What are some other 73 00:04:25,760 --> 00:04:30,080 Speaker 1: ways that plane manufacturers are trying to lower how much 74 00:04:30,120 --> 00:04:32,080 Speaker 1: these planes pollute. 75 00:04:32,240 --> 00:04:34,760 Speaker 3: There has been a lot of technology developments in terms 76 00:04:34,800 --> 00:04:37,719 Speaker 3: of reducing fuel burn with the existing engines. So as 77 00:04:37,839 --> 00:04:42,040 Speaker 3: planes get newer and newer generations, engines tend to emit 78 00:04:42,160 --> 00:04:45,919 Speaker 3: less CO two because they burn less fuel, and improving 79 00:04:45,960 --> 00:04:48,600 Speaker 3: efficiency is one way of doing it. The other way 80 00:04:48,640 --> 00:04:51,839 Speaker 3: they've been talking about is improving efficiency in terms of 81 00:04:51,920 --> 00:04:55,480 Speaker 3: air navigation. So instead of having planes that are hovering 82 00:04:55,560 --> 00:04:59,240 Speaker 3: for a while, you have the plane's flight direct routings 83 00:04:59,560 --> 00:05:03,160 Speaker 3: and essentially allows you to negate the carbon impact from 84 00:05:03,320 --> 00:05:08,520 Speaker 3: planes circling endlessly waiting to land. We've been clear for landing. 85 00:05:09,040 --> 00:05:11,680 Speaker 2: The issue with those kind of approaches is to get 86 00:05:11,720 --> 00:05:15,640 Speaker 2: like marginal improvements in how much carbon a flight or 87 00:05:15,680 --> 00:05:18,880 Speaker 2: a per passenger emits. And the problem is is aviation, 88 00:05:19,400 --> 00:05:22,359 Speaker 2: as countries get richer, is just growing so fast that 89 00:05:22,440 --> 00:05:26,080 Speaker 2: it really just negates any of these really piecemeal approaches 90 00:05:26,279 --> 00:05:31,600 Speaker 2: that get you these marginal environmental benefits. So, yeah, engines 91 00:05:31,640 --> 00:05:34,360 Speaker 2: get better with each generation, but so many more people fly, 92 00:05:35,120 --> 00:05:38,480 Speaker 2: the environmental benefit is only really there in a kind 93 00:05:38,480 --> 00:05:40,800 Speaker 2: of an abstract per person measure, and that's not how 94 00:05:40,839 --> 00:05:45,400 Speaker 2: carbon's polluted. I think environmentalists and academics would say, you 95 00:05:45,440 --> 00:05:48,920 Speaker 2: have to focus on the absolute amount of carbon emissions 96 00:05:48,920 --> 00:05:52,240 Speaker 2: coming from aviation, and that is continuing to arise, unabated 97 00:05:52,440 --> 00:05:54,480 Speaker 2: by minor improvements and technology. 98 00:05:55,600 --> 00:05:57,360 Speaker 1: And one of the things you write about is one 99 00:05:57,440 --> 00:06:00,840 Speaker 1: reason why so many more people are flying is that 100 00:06:00,880 --> 00:06:03,720 Speaker 1: for a long time, flying got really really cheap. It's 101 00:06:03,760 --> 00:06:07,599 Speaker 1: expensive now, but we all got used to such cheap 102 00:06:07,720 --> 00:06:10,880 Speaker 1: faars that people started flying who never flew before and 103 00:06:10,920 --> 00:06:13,719 Speaker 1: started flying more often than they ever flew before. 104 00:06:14,440 --> 00:06:18,040 Speaker 3: More people flying more often is basically what drove the 105 00:06:18,120 --> 00:06:21,720 Speaker 3: aviation industry, but it's also been the sort of source 106 00:06:21,839 --> 00:06:25,120 Speaker 3: of a lot of the carbon emissions and wild planes 107 00:06:25,120 --> 00:06:27,760 Speaker 3: that you fly these days are way cleaner than what 108 00:06:27,800 --> 00:06:31,200 Speaker 3: they used to be twenty years ago or fifty years ago. 109 00:06:31,600 --> 00:06:33,640 Speaker 3: The number of planes that are in the sky are 110 00:06:33,680 --> 00:06:36,480 Speaker 3: also far greater than they used to be twenty years 111 00:06:36,480 --> 00:06:38,800 Speaker 3: ago and fifty years ago, which sort of creates this 112 00:06:38,880 --> 00:06:42,080 Speaker 3: new problem where you're trying to reduce emissions on a 113 00:06:42,160 --> 00:06:44,720 Speaker 3: per plane basis, but if there are more planes flying 114 00:06:44,760 --> 00:06:47,560 Speaker 3: in the sky, then you're not really addressing the core 115 00:06:47,640 --> 00:06:48,400 Speaker 3: issue as a whole. 116 00:06:48,960 --> 00:06:50,640 Speaker 4: It's not just people that are flying more. 117 00:06:50,680 --> 00:06:54,159 Speaker 2: If you think about how our contemporary world works, you've 118 00:06:54,200 --> 00:06:57,680 Speaker 2: got kind of next day delivery. So much freight is 119 00:06:57,760 --> 00:07:00,000 Speaker 2: done by n now because we want things so quickly, 120 00:07:00,320 --> 00:07:03,479 Speaker 2: and that's another change that's happened, and that's causing more flights. 121 00:07:03,920 --> 00:07:07,240 Speaker 2: Economies grow and people get rich. There's an increase in 122 00:07:07,600 --> 00:07:10,800 Speaker 2: how much stuff they order online, things like medicines and 123 00:07:10,880 --> 00:07:13,720 Speaker 2: food like that's just getting moved around the world at 124 00:07:13,800 --> 00:07:16,720 Speaker 2: such a fast paced by aviation now, and that's another 125 00:07:17,120 --> 00:07:19,280 Speaker 2: huge change that we've seen maybe over the last thirty 126 00:07:19,360 --> 00:07:20,800 Speaker 2: years as well. 127 00:07:20,840 --> 00:07:23,200 Speaker 1: Why is flying so much cheaper than it used to be. 128 00:07:23,280 --> 00:07:25,400 Speaker 1: I mean, obviously fuel is more expensive now, but does 129 00:07:25,400 --> 00:07:26,520 Speaker 1: that account for all of it? 130 00:07:27,880 --> 00:07:30,360 Speaker 3: So a lot of that is because of Europe essentially 131 00:07:30,400 --> 00:07:33,280 Speaker 3: in the nineteen nineties opened up the skies to competition 132 00:07:33,360 --> 00:07:36,360 Speaker 3: and allowed airlines like Ryanair and others to thrive where 133 00:07:36,560 --> 00:07:39,559 Speaker 3: you could be an operator running services from your base 134 00:07:39,600 --> 00:07:42,200 Speaker 3: in Ireland, but you can operate services across the continent, 135 00:07:42,760 --> 00:07:45,280 Speaker 3: and that's spurred a lot of other discount carriers like 136 00:07:45,320 --> 00:07:48,480 Speaker 3: easy Jet and Whizzer, who all operate on the same model, 137 00:07:48,520 --> 00:07:51,240 Speaker 3: where you have planes that are based across different countries 138 00:07:51,560 --> 00:07:54,400 Speaker 3: flying to different countries without having to get bogged down 139 00:07:54,440 --> 00:07:56,840 Speaker 3: in If you're an airline from the UK, you can 140 00:07:56,880 --> 00:07:58,840 Speaker 3: only fly to and from the UK, and within the 141 00:07:58,920 --> 00:08:02,520 Speaker 3: UK it's only restrict to flying in the UK. Similarly 142 00:08:02,560 --> 00:08:05,040 Speaker 3: for Germany and other countries, where now you can have 143 00:08:05,160 --> 00:08:08,000 Speaker 3: airlines that are not based in your country but have 144 00:08:08,160 --> 00:08:11,240 Speaker 3: local units or just have bases in those countries and 145 00:08:11,320 --> 00:08:14,480 Speaker 3: they're sort of flying routes that would normally be reserved 146 00:08:14,480 --> 00:08:16,560 Speaker 3: for the one or two dominant carriers. 147 00:08:16,840 --> 00:08:20,480 Speaker 2: In This shift has been really important for Europe's economic cohesion. 148 00:08:20,880 --> 00:08:25,160 Speaker 2: In Europe, you roughly have a very wealthy Northern Europe 149 00:08:25,200 --> 00:08:29,880 Speaker 2: with advanced manufacturing and world class services economy, and then 150 00:08:29,880 --> 00:08:33,120 Speaker 2: you have like a southern Rim that's always traditionally had 151 00:08:33,160 --> 00:08:37,200 Speaker 2: like higher unemployment, less industry, and those places kind of 152 00:08:37,240 --> 00:08:40,240 Speaker 2: in Greece, parts of Spain, parts of southern Italy are 153 00:08:40,280 --> 00:08:45,440 Speaker 2: really dependent on cheap aviation to bring wealthy tourists from 154 00:08:45,840 --> 00:08:48,600 Speaker 2: northern parts, from those kind of wealthy areas of Northern 155 00:08:48,640 --> 00:08:51,560 Speaker 2: Europe and to get them spending money in poorer parts 156 00:08:51,559 --> 00:08:55,160 Speaker 2: of Southern Europe. This is another challenge that the aviation 157 00:08:55,280 --> 00:08:59,360 Speaker 2: sector in European society faces in trying to cut missions. 158 00:08:59,400 --> 00:09:01,840 Speaker 4: You really starting to unpick kind. 159 00:09:01,640 --> 00:09:05,800 Speaker 2: Of the economic fabric of some relatively vulnerable countries if 160 00:09:05,840 --> 00:09:10,040 Speaker 2: you move too quickly on this, and if you increase 161 00:09:10,080 --> 00:09:13,000 Speaker 2: taxes or try and just do things to then demand 162 00:09:13,120 --> 00:09:18,040 Speaker 2: for cheap aviation. It's a really multifaceted problem. It's not 163 00:09:18,120 --> 00:09:21,679 Speaker 2: just the technical or business side. There's these big societal 164 00:09:21,760 --> 00:09:25,480 Speaker 2: questions and big economic questions for some countries in. 165 00:09:25,440 --> 00:09:30,160 Speaker 1: Europe, and we're starting to see now exactly that a 166 00:09:30,160 --> 00:09:33,680 Speaker 1: lot of pressure from governments to cut down on these 167 00:09:33,800 --> 00:09:37,080 Speaker 1: short routes. Europe has really good train travel, and like 168 00:09:37,120 --> 00:09:39,640 Speaker 1: say the United States, where it's almost impossible to get 169 00:09:39,800 --> 00:09:42,560 Speaker 1: long distances by training, Europe it's easy to do it. 170 00:09:42,600 --> 00:09:45,480 Speaker 1: And so it seems that governments are starting to crack 171 00:09:45,559 --> 00:09:47,320 Speaker 1: down on some of these shorter routes. 172 00:09:48,320 --> 00:09:50,240 Speaker 3: There is a massive crackdown, I mean we saw that 173 00:09:50,360 --> 00:09:52,840 Speaker 3: during the pandemic when a lot of the aid to 174 00:09:52,880 --> 00:09:57,199 Speaker 3: the airlines was died to decarbanization goals, and essentially there 175 00:09:57,360 --> 00:09:59,280 Speaker 3: was a lot of pressure on governments to say that 176 00:09:59,520 --> 00:10:02,640 Speaker 3: airlines are taking bailout should also be forced to scrap 177 00:10:02,720 --> 00:10:06,040 Speaker 3: routes that are easily sort of duplicated on short train journeys. 178 00:10:06,520 --> 00:10:08,880 Speaker 3: And we have seen a sort of rise in areas 179 00:10:08,880 --> 00:10:12,360 Speaker 3: where there is a train alternative that's convenient. We have 180 00:10:12,440 --> 00:10:15,680 Speaker 3: seen a rise in train travel. I mean London Paris, 181 00:10:15,720 --> 00:10:19,199 Speaker 3: for instance, is one of the busiest sectors. They used 182 00:10:19,200 --> 00:10:21,520 Speaker 3: to be sort of dominated by the airlines and now 183 00:10:21,559 --> 00:10:24,439 Speaker 3: we've seen the Eurostar taking them as much as seventy 184 00:10:24,520 --> 00:10:25,640 Speaker 3: or eighty percent of traffic. 185 00:10:26,600 --> 00:10:30,880 Speaker 1: So we talked about how there is this industry goal 186 00:10:31,040 --> 00:10:34,040 Speaker 1: of reaching net zero by twenty fifty that's coming up 187 00:10:34,080 --> 00:10:37,040 Speaker 1: pretty fast. Where are we How close to that goal 188 00:10:37,320 --> 00:10:38,520 Speaker 1: is the industry right now? 189 00:10:39,080 --> 00:10:41,800 Speaker 3: It isn't very close at the moment. They're working on 190 00:10:41,840 --> 00:10:44,640 Speaker 3: a multiple measures, but the aviation industry is one that 191 00:10:44,679 --> 00:10:48,079 Speaker 3: has very very very long lead times, and it also 192 00:10:48,160 --> 00:10:53,000 Speaker 3: has very stringent safety requirements, so you can't have technology 193 00:10:53,040 --> 00:10:55,960 Speaker 3: adoption as quickly as say the auto industry, where we 194 00:10:56,080 --> 00:11:00,840 Speaker 3: have electric vehicles grading prominence far more significantly and fundamentally. 195 00:11:00,880 --> 00:11:03,520 Speaker 3: This is also the problem of physics, so problems that 196 00:11:03,600 --> 00:11:06,440 Speaker 3: are easily sold on the ground that much harder to solve. 197 00:11:06,440 --> 00:11:08,520 Speaker 3: When you're in the air looking. 198 00:11:08,360 --> 00:11:11,120 Speaker 2: At twenty to fifty, it's very, very difficult to see 199 00:11:11,160 --> 00:11:15,800 Speaker 2: how the industry reaches net zero without some kind of unexpected, 200 00:11:15,800 --> 00:11:18,400 Speaker 2: almost like miraculous breakthrough in technology. 201 00:11:18,960 --> 00:11:21,480 Speaker 1: When we come back, how about a plane that runs 202 00:11:21,520 --> 00:11:33,559 Speaker 1: on hydrogen sid Right before the break, Will was talking 203 00:11:33,559 --> 00:11:36,400 Speaker 1: about how hard it will be to reach this net 204 00:11:36,559 --> 00:11:39,440 Speaker 1: zero go about twenty fifty without some sort of really 205 00:11:39,440 --> 00:11:44,679 Speaker 1: big breakthroughs, and airplane manufacturers are working on some pretty far. 206 00:11:44,600 --> 00:11:48,480 Speaker 3: Out stuff absolutely, so Ebus is promising to build a 207 00:11:48,559 --> 00:11:52,800 Speaker 3: hydrogen powered plane that enters into commercial services sometime in 208 00:11:52,840 --> 00:11:56,679 Speaker 3: the mid twenty thirties, and so that's only fifteen years away. 209 00:11:57,000 --> 00:12:00,319 Speaker 3: They're working on couple solutions. One of them is fuel 210 00:12:00,320 --> 00:12:02,920 Speaker 3: cell powered, so essentially think of it like a fuel 211 00:12:02,960 --> 00:12:06,280 Speaker 3: cell powering your hydrogen cars. So you have a little 212 00:12:06,280 --> 00:12:10,240 Speaker 3: bit of hydrogen that essentially generates electricity that powers electric motors. 213 00:12:10,600 --> 00:12:13,880 Speaker 3: That power is a plane. That is the basic of 214 00:12:13,880 --> 00:12:18,560 Speaker 3: fuel cell technology. You also have hydrogen combustion, where it 215 00:12:18,720 --> 00:12:22,000 Speaker 3: works more like a traditional jet engine, where instead of 216 00:12:22,000 --> 00:12:25,880 Speaker 3: burning kerosene, a jet engine burns hydrogen. And at the 217 00:12:25,920 --> 00:12:29,440 Speaker 3: moment they're working on both solutions. Air Bus is sort 218 00:12:29,440 --> 00:12:33,439 Speaker 3: of throwing its weight more towards fuel cell technology because 219 00:12:33,840 --> 00:12:37,120 Speaker 3: it does seem to be the solution, especially for smaller 220 00:12:37,160 --> 00:12:41,000 Speaker 3: planes that fly shorter distances. It does seem to be 221 00:12:41,040 --> 00:12:44,720 Speaker 3: something that could be attainable. We've also seen startups like 222 00:12:44,800 --> 00:12:49,400 Speaker 3: zero Avia and Universal Hydrogen also approaching the same fuel 223 00:12:49,440 --> 00:12:53,360 Speaker 3: cell technology solution. It's really a question of how we 224 00:12:53,400 --> 00:12:56,880 Speaker 3: get there. Rolls Royce is also working on hydrogen combustion. 225 00:12:57,559 --> 00:13:00,600 Speaker 3: So depending on which technology works, the beat, I mean, 226 00:13:00,640 --> 00:13:03,680 Speaker 3: we may see one or two of these solutions actually 227 00:13:03,720 --> 00:13:05,520 Speaker 3: working on planes that fly in the sky. Is by 228 00:13:05,559 --> 00:13:07,320 Speaker 3: twenty thirty five, if you. 229 00:13:07,320 --> 00:13:11,280 Speaker 2: Look at the automotive sector, by kind of Chinese regulations 230 00:13:11,280 --> 00:13:14,800 Speaker 2: and also the force of Tesla's rise, the whole industry 231 00:13:14,840 --> 00:13:17,960 Speaker 2: is kind of swung behind more or less completely to 232 00:13:18,200 --> 00:13:21,880 Speaker 2: battery electric vehicles. There's this big need to scale up 233 00:13:21,920 --> 00:13:25,560 Speaker 2: these solutions quickly to hit the twenty fifty target. Got 234 00:13:25,720 --> 00:13:28,920 Speaker 2: lots of different companies are working on lots of different technologies, 235 00:13:29,200 --> 00:13:33,360 Speaker 2: and there's not really kind of an industry consensus about 236 00:13:33,400 --> 00:13:36,640 Speaker 2: what the solution is. And that's obviously something you would 237 00:13:36,679 --> 00:13:40,720 Speaker 2: need to have to hit these twenty to fifty. 238 00:13:40,400 --> 00:13:43,319 Speaker 3: Goals, especially if you want to get the infrastructure in place, 239 00:13:43,320 --> 00:13:46,920 Speaker 3: because flying an airplane the spowered by hydrogens one solution, 240 00:13:47,120 --> 00:13:49,959 Speaker 3: but then you also need to fuel up the aircraft. 241 00:13:50,040 --> 00:13:51,559 Speaker 3: You need to be able to handle the aircraft that 242 00:13:51,679 --> 00:13:54,040 Speaker 3: airport's around the world, So you need to build up 243 00:13:54,040 --> 00:13:57,240 Speaker 3: an infrastructure that is capable of supporting those aircraft across 244 00:13:57,240 --> 00:13:59,720 Speaker 3: the world, not just in Europe or the US or 245 00:13:59,760 --> 00:14:01,760 Speaker 3: any You have to be able to sort of scale 246 00:14:01,800 --> 00:14:05,040 Speaker 3: up that solution and deploy it and ensure that there 247 00:14:05,120 --> 00:14:08,680 Speaker 3: sufficient supply of hydrogen around the world, and so that's 248 00:14:08,720 --> 00:14:10,360 Speaker 3: all going to take some time to develop. 249 00:14:11,000 --> 00:14:13,559 Speaker 2: Hydrogen is now being seen as a kind of silver 250 00:14:13,600 --> 00:14:17,320 Speaker 2: bullet for several so called hard to abate sectors. Companies 251 00:14:17,360 --> 00:14:20,080 Speaker 2: want to use it to get to zero emissions. In 252 00:14:20,080 --> 00:14:22,000 Speaker 2: the steel sector, companies want to use it to get 253 00:14:22,000 --> 00:14:26,200 Speaker 2: to zero emissions in the chemical sector cement as well. 254 00:14:26,440 --> 00:14:30,560 Speaker 4: So you have the world going from a kind of tiny. 255 00:14:30,640 --> 00:14:35,480 Speaker 2: Negligible, almost non existent green hydrogen production capacity suddenly needs 256 00:14:35,520 --> 00:14:40,080 Speaker 2: to have enough hydrogen to kind of decarbonize vast ways 257 00:14:40,120 --> 00:14:43,600 Speaker 2: of industry and aviation will if it goes down a 258 00:14:43,680 --> 00:14:46,720 Speaker 2: hydrogen path, be competing with those industries for that fuel. 259 00:14:47,200 --> 00:14:50,120 Speaker 2: Even if you can solve the technical challenge, there's a 260 00:14:50,200 --> 00:14:52,360 Speaker 2: major business economic challenge there. 261 00:14:53,880 --> 00:14:56,680 Speaker 1: I suppose. Also, if they were able to build these 262 00:14:56,680 --> 00:15:02,080 Speaker 1: planes and they flew successfully, there's still thousands and thousands 263 00:15:02,120 --> 00:15:04,200 Speaker 1: of the current aircraft that would have to be phased 264 00:15:04,240 --> 00:15:08,360 Speaker 1: out over many, many years. So we're looking at probably 265 00:15:08,680 --> 00:15:11,880 Speaker 1: decades right before you would even be able to convert 266 00:15:11,920 --> 00:15:13,600 Speaker 1: the fleet absolutely. 267 00:15:13,680 --> 00:15:16,240 Speaker 3: I mean, most aircraft have a service life of about twenty 268 00:15:16,280 --> 00:15:19,400 Speaker 3: five years, and so we're still going to be seeing 269 00:15:20,080 --> 00:15:23,640 Speaker 3: conventional aircraft being delivered into the twenty thirties, so twenty 270 00:15:23,680 --> 00:15:26,720 Speaker 3: five years from that is into the twenty sixties. 271 00:15:27,440 --> 00:15:30,800 Speaker 1: So that's hydrogen, which sounds like it's a while away, 272 00:15:31,240 --> 00:15:34,480 Speaker 1: but you report that is not the only renewable feel 273 00:15:34,600 --> 00:15:36,040 Speaker 1: that playmakers are looking at. 274 00:15:36,520 --> 00:15:39,680 Speaker 3: So aside from hydrogen, there's also companies that are exploring 275 00:15:39,960 --> 00:15:43,360 Speaker 3: hybrid electric or electric powered aircraft. So we have a 276 00:15:43,400 --> 00:15:46,320 Speaker 3: company called Heart Aerospace as a startup based in Sweden 277 00:15:46,640 --> 00:15:49,880 Speaker 3: that's talking about building a thirty passenger aircraft that has 278 00:15:49,920 --> 00:15:52,720 Speaker 3: a range of flying about two hundred kilometers on electric 279 00:15:52,800 --> 00:15:55,920 Speaker 3: power alone, as or even four hundred or eight hundred 280 00:15:55,960 --> 00:15:59,520 Speaker 3: kilometers with the combination of a hybrid technology where the 281 00:15:59,600 --> 00:16:03,880 Speaker 3: hybrid engine generates electricity for the aircraft, And that could 282 00:16:03,920 --> 00:16:07,040 Speaker 3: also be a solution. But given the fact that lithium 283 00:16:07,040 --> 00:16:11,400 Speaker 3: ion batteries aren't great a storing large amounts of energy, 284 00:16:11,920 --> 00:16:14,320 Speaker 3: we may not see that working for sort of long 285 00:16:14,360 --> 00:16:16,040 Speaker 3: haul intercontinental aircraft. 286 00:16:16,440 --> 00:16:20,000 Speaker 2: One thing that made fossil fuels so successful is that 287 00:16:20,040 --> 00:16:23,080 Speaker 2: they're just so energy dense. Of course, the other thing 288 00:16:23,160 --> 00:16:25,120 Speaker 2: is is when you go on a long haul flight, 289 00:16:25,360 --> 00:16:28,480 Speaker 2: you're actually getting rid of the fossil fuels from fuel 290 00:16:28,520 --> 00:16:32,000 Speaker 2: tanks as you fly. The fuel consumption is not linear 291 00:16:32,080 --> 00:16:33,560 Speaker 2: on a flight. You burn a lot of fuel at 292 00:16:33,600 --> 00:16:35,920 Speaker 2: the start, and then because the plane's getting lighter because 293 00:16:35,920 --> 00:16:39,160 Speaker 2: you're burning fuel, you need less fuel further along the flight. 294 00:16:39,280 --> 00:16:42,280 Speaker 2: So the calculation for long distance is based on the 295 00:16:42,360 --> 00:16:45,560 Speaker 2: aircraft losing weight as it travels, and obviously you can't 296 00:16:45,600 --> 00:16:48,480 Speaker 2: do that with lithium ion batteries. You lose the energy 297 00:16:48,520 --> 00:16:51,440 Speaker 2: from the battery, but the weight still there. Until we 298 00:16:51,480 --> 00:16:54,440 Speaker 2: see some kind of real and this may not even 299 00:16:54,480 --> 00:16:58,040 Speaker 2: happen in our lifetimes, a kind of real step change 300 00:16:58,080 --> 00:17:01,640 Speaker 2: in battery density or or something like that, you're not 301 00:17:01,760 --> 00:17:05,840 Speaker 2: going to see battery power planes on long hal flights. 302 00:17:06,480 --> 00:17:09,760 Speaker 1: So it looks like things are looking up thirty years 303 00:17:09,760 --> 00:17:12,399 Speaker 1: in the future. But when we come back, where can 304 00:17:12,480 --> 00:17:24,440 Speaker 1: he done to reduce plane pollution right now? Well, as 305 00:17:24,440 --> 00:17:28,000 Speaker 1: you say, both hydrogen and batteries to power planes are 306 00:17:28,080 --> 00:17:32,600 Speaker 1: ways off. So can the sustainable aviation fuels that you 307 00:17:32,680 --> 00:17:36,320 Speaker 1: mentioned earlier help with some of the emissions problems? In 308 00:17:36,359 --> 00:17:39,199 Speaker 1: the meantime, while they're developing these things. 309 00:17:40,080 --> 00:17:41,600 Speaker 4: There's a variety of them. 310 00:17:41,680 --> 00:17:45,520 Speaker 2: So you have biofuel based sustainable aviation fuel, which might 311 00:17:45,640 --> 00:17:50,880 Speaker 2: take animal fat and turn that into a combustible kind 312 00:17:50,880 --> 00:17:54,880 Speaker 2: of hydrocarbon. Then in Germany in particular, they're working on 313 00:17:55,280 --> 00:17:59,560 Speaker 2: some slightly more out of left field fuels called synthetic 314 00:17:59,800 --> 00:18:05,040 Speaker 2: aviation fuels, which basically would pull carbon out the atmosphere 315 00:18:05,320 --> 00:18:09,080 Speaker 2: and combine it through a chemical process, which was the 316 00:18:09,320 --> 00:18:12,920 Speaker 2: chemical process that the Germans used in World War Two 317 00:18:13,040 --> 00:18:17,840 Speaker 2: to turn coal into fuel for the Luffaffer and for 318 00:18:18,280 --> 00:18:20,240 Speaker 2: their kind of soldiers when Germany couldn't. 319 00:18:19,960 --> 00:18:21,720 Speaker 4: Get access to oil field. 320 00:18:22,640 --> 00:18:25,080 Speaker 2: Through this process, you can make kind of a synthetic 321 00:18:25,160 --> 00:18:29,080 Speaker 2: fuel from hydrogen and carbon from the atmosphere. 322 00:18:29,160 --> 00:18:30,119 Speaker 4: But again you. 323 00:18:30,080 --> 00:18:32,720 Speaker 2: Wouldn't be surprised to hear that that's probably quite expensive 324 00:18:32,760 --> 00:18:36,000 Speaker 2: and takes massive amounts of renewable energy to make. 325 00:18:36,920 --> 00:18:38,480 Speaker 4: Probably in the future this will be. 326 00:18:38,480 --> 00:18:40,879 Speaker 2: Able to be done at a large scale, but in 327 00:18:40,920 --> 00:18:44,040 Speaker 2: this relatively short kind of twenty five year period we have, 328 00:18:44,119 --> 00:18:45,879 Speaker 2: it's difficult to see how it's going to make a 329 00:18:45,920 --> 00:18:46,680 Speaker 2: major difference. 330 00:18:47,680 --> 00:18:49,400 Speaker 1: Right now. They're kind of expensive, right. 331 00:18:49,640 --> 00:18:53,200 Speaker 2: Yeah, they're several times more than the cost of normal keresy. 332 00:18:53,680 --> 00:18:56,840 Speaker 2: As well as that, there's also just very very small 333 00:18:56,880 --> 00:19:01,159 Speaker 2: supply of these fuels at the moment, and scaling up 334 00:19:01,280 --> 00:19:02,560 Speaker 2: will be a massive task. 335 00:19:03,440 --> 00:19:04,960 Speaker 3: If you look at this sort of ramp up goals 336 00:19:05,040 --> 00:19:09,159 Speaker 3: or sustainable aviation fuel, they're talking about ten percent sustainable 337 00:19:09,160 --> 00:19:13,359 Speaker 3: aviation fuel blended into regular jet fuel in twenty thirty, 338 00:19:13,480 --> 00:19:15,879 Speaker 3: So essentially it's a long drawn solution. It's not going 339 00:19:15,920 --> 00:19:19,280 Speaker 3: to be something that sort of decalbonizes the industry tomorrow. 340 00:19:19,720 --> 00:19:22,280 Speaker 3: It's going to be a long roadmap towards it, but 341 00:19:22,400 --> 00:19:25,199 Speaker 3: it does seem to be the only real solution that 342 00:19:25,280 --> 00:19:28,720 Speaker 3: the airline industry has as they work on radical designs 343 00:19:28,760 --> 00:19:29,760 Speaker 3: and new technologies. 344 00:19:30,800 --> 00:19:33,960 Speaker 1: Some airlines allow passengers to pay more for a ticket 345 00:19:34,040 --> 00:19:37,359 Speaker 1: to support these cleaner fuels. How does that work? 346 00:19:38,480 --> 00:19:42,600 Speaker 2: There are some airlines that are kind of tentatively offering it. 347 00:19:43,119 --> 00:19:45,920 Speaker 2: The way it works is, if we take Lufthansa, which 348 00:19:45,960 --> 00:19:50,680 Speaker 2: is Europe's largest airline, they do offer passengers an option 349 00:19:50,880 --> 00:19:54,040 Speaker 2: whereby you can, when booking your ticket, you can pay 350 00:19:54,040 --> 00:19:58,840 Speaker 2: an extra fee for sustainable aviation fuel. Obviously, that fuel 351 00:19:58,880 --> 00:20:02,560 Speaker 2: that passenger buys doesn't get put onto the actual flight 352 00:20:02,640 --> 00:20:03,639 Speaker 2: that passengers taking. 353 00:20:04,000 --> 00:20:05,800 Speaker 4: It will at some point. 354 00:20:05,440 --> 00:20:11,359 Speaker 2: Be put into Lufthansa's fleet somewhere else. Customers don't really 355 00:20:11,400 --> 00:20:14,600 Speaker 2: seem willing to pay that extra for their flight tickets 356 00:20:14,640 --> 00:20:16,320 Speaker 2: to secure these fuels. 357 00:20:16,840 --> 00:20:19,480 Speaker 3: If customers are left to pay for it themselves, most 358 00:20:19,480 --> 00:20:21,880 Speaker 3: of them don't really want to pay because, I mean, 359 00:20:22,000 --> 00:20:24,360 Speaker 3: as some airline executives explained to me the other day, 360 00:20:24,760 --> 00:20:27,520 Speaker 3: if there's a rival airline that's offering a fair that's 361 00:20:27,560 --> 00:20:30,760 Speaker 3: fifteen euros cheaper, people are likely to choose that. So 362 00:20:31,480 --> 00:20:34,400 Speaker 3: would people be extra for sustainable aviation fuel? 363 00:20:34,480 --> 00:20:35,080 Speaker 4: Probably not. 364 00:20:38,119 --> 00:20:41,280 Speaker 1: So, given all the complications here, a lack of a 365 00:20:41,359 --> 00:20:47,639 Speaker 1: viable option, a long timeline before these renewable powered planes 366 00:20:47,760 --> 00:20:52,000 Speaker 1: come into existence, and a lack of willingness of flyers 367 00:20:52,040 --> 00:20:55,080 Speaker 1: to pay extra. Where do things go from here? How 368 00:20:55,200 --> 00:20:59,080 Speaker 1: long do you think before we actually have net zero 369 00:20:59,480 --> 00:21:00,600 Speaker 1: in airline travel? 370 00:21:01,200 --> 00:21:02,679 Speaker 2: If I had to guess, I think it'll be some 371 00:21:02,760 --> 00:21:05,800 Speaker 2: point way beyond twenty to fifty. And there's a lot 372 00:21:05,800 --> 00:21:10,440 Speaker 2: of extremely talented engineers in the aviation sector and scientists 373 00:21:10,440 --> 00:21:12,640 Speaker 2: working on this, so you can never kind of rule 374 00:21:12,640 --> 00:21:15,680 Speaker 2: out a technological solution, But just the targets we're talking 375 00:21:15,760 --> 00:21:20,560 Speaker 2: about seem too soon. All the while, other sectors are 376 00:21:20,560 --> 00:21:23,879 Speaker 2: going to be decarbonizing rapidly, so we know what's happening 377 00:21:23,880 --> 00:21:26,199 Speaker 2: with electric cars, and in some countries are bringing in 378 00:21:26,240 --> 00:21:29,719 Speaker 2: bands in the twenty thirties on new combustion engine sales, 379 00:21:30,000 --> 00:21:32,879 Speaker 2: so we'll see road transport emissions go down. We're probably 380 00:21:32,880 --> 00:21:35,800 Speaker 2: just starting to see industrial emissions go down in the 381 00:21:36,119 --> 00:21:41,200 Speaker 2: electricity generation sector with wind and solar power. Actually, emissions 382 00:21:41,240 --> 00:21:43,000 Speaker 2: in a lot of countries have already fallen quite a 383 00:21:43,000 --> 00:21:46,439 Speaker 2: lot if aviation emissions are continuing to rise because more 384 00:21:46,480 --> 00:21:49,440 Speaker 2: people are flying into the twenty thirties and forties. Are 385 00:21:49,520 --> 00:21:52,919 Speaker 2: we looking at maybe in ten fifteen years from now, 386 00:21:52,960 --> 00:21:55,760 Speaker 2: that aviation is in a kind of world where this 387 00:21:55,880 --> 00:21:58,720 Speaker 2: voter demand to go green is intensifying. Are we looking 388 00:21:58,760 --> 00:22:02,399 Speaker 2: at aviation companies is kind of the new tobacco companies 389 00:22:02,440 --> 00:22:04,640 Speaker 2: of the twenty thirties and twenty forties. 390 00:22:05,240 --> 00:22:08,480 Speaker 3: As a proportion, today, aviation emissions are about two and 391 00:22:08,520 --> 00:22:12,480 Speaker 3: a half percent of global emissions. But as other sectors decubinize, 392 00:22:12,520 --> 00:22:15,160 Speaker 3: that proportions just going to get higher and higher and 393 00:22:15,480 --> 00:22:17,320 Speaker 3: there is going to be more pressure. I mean, before 394 00:22:17,320 --> 00:22:21,000 Speaker 3: the pandemic, we did see activists like Grata Tunberg and 395 00:22:21,040 --> 00:22:24,199 Speaker 3: others talking about flight shaming, where people were told not 396 00:22:24,320 --> 00:22:28,240 Speaker 3: to take unnecessarily flights. And we've seen a resurgence and 397 00:22:28,359 --> 00:22:30,919 Speaker 3: air travel, especially after the pandemic, when people want to 398 00:22:30,960 --> 00:22:33,840 Speaker 3: fly again and everything else. But once that bent up 399 00:22:33,880 --> 00:22:37,359 Speaker 3: demand debits, will flight shaming come back and will the 400 00:22:37,400 --> 00:22:39,119 Speaker 3: aviation industry be under pressure from that? 401 00:22:39,920 --> 00:22:42,280 Speaker 1: Will sid Thanks so much for coming on the show. 402 00:22:42,760 --> 00:22:45,280 Speaker 4: Thanks so much, Wes, Thank you so much for having. 403 00:22:45,040 --> 00:22:52,120 Speaker 1: Us, Thanks for listening to us. Here at The Big Take. 404 00:22:52,200 --> 00:22:55,760 Speaker 1: It's a daily podcast from Bloomberg and iHeartRadio. For more 405 00:22:55,760 --> 00:22:59,960 Speaker 1: shows from iHeartRadio, visit the iHeartRadio app, Apple Podcasts, or 406 00:23:00,040 --> 00:23:02,600 Speaker 1: wherever you listen, and we'd love to hear from you. 407 00:23:02,760 --> 00:23:06,160 Speaker 1: Email us questions or comments to Big Take at Bloomberg 408 00:23:06,200 --> 00:23:09,720 Speaker 1: dot net. The supervising producer of The Big Take is 409 00:23:09,840 --> 00:23:15,000 Speaker 1: Vicky Vergolina. Our senior producer is Catherine Fink. Federica Romaniello 410 00:23:15,119 --> 00:23:20,160 Speaker 1: is our producer. Our associate producer is Zenobsidiki. Raphael mcie 411 00:23:20,200 --> 00:23:24,000 Speaker 1: lee is our engineer. Our original music was composed by 412 00:23:24,080 --> 00:23:27,960 Speaker 1: Leo Sidron. I'm west Kosova. We'll be back tomorrow with 413 00:23:28,080 --> 00:23:29,160 Speaker 1: another Big Take.