Proposes An 'X-Prize' For A Process To Convert Natural Gas To Jet Fuel

The founder of JetBlue, and a handful of other airlines, says that the solution to volatile jet fuel prices is a process to convert natural gas into something airliners can burn, and he wants to put up a $1 billion "X-Prize" to make it happen.

David Neeleman (pictured) presented the idea at the airline forecast conference in Dallas, TX, Monday. "That's my next big thing," he said.

Bloomberg Business Week reports that the idea of Gas-to-Liquid (GTL) fuel is feasible, and is actually being done in Qatar by Shell ... producing viable fuel at a cost of about $80 per barrel. Qatar Airways first used the GTL fuel in 2009. Just building the plant cost the company $18 billion.

But Neeleman says to be truly viable, the fuel would have to come in at about half that price ... about $40 per barrel. He said that would be a "game changer" which would be more attractive than biofuels currently under development.

Neeleman said that he hopes other carriers will chip in to get up to $1 billion for a fund that would spur innovation in the field. He said as an example that such a fuel could have saved Delta Airlines as much as a third of its $12 billion fuel bill last year.

FMI: http://en.wikipedia.org/wiki/David_Neeleman