If you thought flying was expensive now, just wait 10 years when increasing jet fuel shortages double ticket prices.  Unless of course jet biofuel production takes off which it’s expected to do so in the coming years.  I’ve written quite a bit about Rentech (RTK) here which develops synthetic jet fuel from coal.  Its fuel was approved last year for use in aircraft and the company is putting the pieces in place to produce it on a larger scale. 

Another emerging biofuel that I was not aware of is being produced from camelina oil and Dr. Kent Moors over at Morning Morning had a great write up last week discussing the emerging technology and how to profit.  A company right here in the great Northwest (Seattle) called AltAir Fuels has received memorandums from 14 airlines including nearly all of the major airlines.  Very impressive.

You can’t buy shares in AltAir until it goes public, but he highlights some indirect ways to play it.  The indirect camelina biodiesel plays aren’t going to give you much exposure, so probably not good plays on this, but it’s certainly worth watching the developments in this space, particularly if AltAir Fuels goes public.