New jet engines have the potential to enhance GE Aviation’s revenue
Test With Sustainable Fuel General Electric Company’s (GE) aviation branch stated running its Passport long-range business-jet engine using sustainable aviation fuel (SAF) (SAF).
According to GE, the thrust-class turbofan was tested over several days in March at GE Aviation’s Peebles Test Operations site in southern Ohio to determine how well the engine operated while utilizing 100% sustainable fuel. Currently, the Federal Aviation Administration (FAA) regulates SAF blends—combined with regular aviation fuel—at 50%.
Favorable Test Results:
Test With Sustainable Fuel the test employed a form of SAF called HEFA-SPK, a sustainable fuel derived from cooking oil, waste fats, and greases. GE, which has a 14% market share in the international commercial aircraft engine business.
Claimed that the early testing was satisfactory, with the Passport engine performing comparably to when it was operated on petroleum-based aviation fuel.
Reduced Carbon Emissions:
Test With Sustainable Fuel GE Aviation’s director of the Passport testing program, Melvyn Heard, claimed that the engine would assist its clients in minimizing their carbon impact. “As our testing indicates, the Passport engine, like other GE engines, can run on authorized Sustainable Aviation Fuel now and in the future.
Our clients can be certain that the Passport engine can assist fulfill their sustainability targets to cut CO2 emissions in flight due to the Passport’s more fuel-efficient technology compared to previous-generation business jet engines and ability to run on lower-carbon fuels,” he added.
Investor Repercussions:
GE Aviation’s successful test of its Passport engine with sustainable fuel underlines the conglomerate’s dedication to innovation and sustainable solutions for its customers. Although GE’s Aviation business encountered substantial challenges during the pandemic, it still made up the lion’s share of its overall revenue in 2021.
Moreover, GE anticipates the aviation sector to produce sales growth of over 20% this year.
GE jet turbines that run on 100% sustainable fuel have the potential to grow sales even more as airlines aim to enhance operating efficiency and cut their carbon emissions.
GE shares have plummeted -29% over the previous 12 months compared to the Dow Jones Industrial Average (DJIA), which declined by -6% over the same time.
The 130-year-old company plans to spin off its non-aviation companies over the next two to three years as it undertakes a significant overhaul to turn its fortunes around.
Disclosure:
The author had no holdings in the securities, as mentioned earlier at the time of writing. Supported A Convenient Web3 Digital Wallet.
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