Virgin Atlantic and Air New Zealand completed 747 biofuel tests this year, with Virgin testing a B20 blend using babassu palm oil and coconut oil in February while Air New Zealand used a B50 blend from jatropha in its December test.

Continental and Japan Airlines announced early 2009 tests as well. British Airways announced future tests, but avoided the term “biofuels” in the announcement due to the controversy over indirect land-use changes.

Not only are the airlines facing steep fuel charges, but airlines will now enter the European Trading Scheme for carbon emissions in 2012, and the industry is facing up to $10.5 billion in carbon charges unless it reduces its carbon footprint.