The order for 15 of Boeing's 787-9 Dreamliners, worth $2.8 billion at list prices, is the largest request from a European carrier for the 787 to date. Virgin also took options for another eight 787-9s and purchased rights for another 20 Dreamliners in a deal worth up to a total of $8 billion. Boeing estimates its Dreamliner will use 20 percent less fuel per passenger than planes of similar size.
Boeing had earlier listed the order on its Web site, but had not disclosed the customer.
"This revolutionary aircraft will bring a step change to the industry, substantially reducing environmental impact and incorporating innovative design and advanced technology, while providing an enhanced flying experience for our passengers," Steve Ridgway, chief executive officer for Virgin Atlantic, said in a prepared statement.
Boeing executives and Virgin Atlantic Chairman Richard Branson announced the orders and the partnership at a news conference. They said they hope to launch a test flight of a bio-fuel-powered 747 in the next year.
Officials at both companies declined to comment on the value of their investment in the bio-fuel project, which follows a similar airline industry initiative.
"We look forward to finding and testing alternative fuels and developing and implementing solutions that will reduce emissions both in the air and on the ground," said Boeing Chief Executive Officer Jim McNerney. "This is important work with high objectives."
Boeing already has established an alternative fuels program at its Everett facility. Engineers had explored hydrogen as an alternative fuel for commercial jets but haven't figured out a way to keep the necessary equipment light enough to make the fuel source work.
The company has been exploring "drop-in" alternatives - energy sources that can be blended with jet fuel to reduce the demand for oil. One such alternative is a synthetic derived from coal, which could ease the reliance on foreign sources of oil.
The University of North Dakota's Energy and Environmental Research Center has conducted research on coal-to-fuel synthetics. In an interview last fall, the center's associate director told The Herald that researchers there also are exploring jet fuel made from "home grown" crops - a technology thought to be ready in the not too distant future.
Boeing and Virgin say it could take at least five years before any jet bio-fuel is widely available for commercial flights.
Branson said he hopes the new fuel will reduce the overall pollution generated by the airline industry, which is responsible for about 2 percent of the world's carbon emissions.
"We all have a responsibility whether as airline owners, airline manufacturers or engine makers to reduce that carbon footprint, which has grown over the years," he said. "Doing nothing should not be an option."
Separately, Air Canada said Tuesday it is increasing its Dreamliner order to 37 from 14, making it the largest North American customer to date for the plane. The revised agreement includes options for 23 more 787s. The new aircraft will replace its existing Airbus A340s and A330s and Boeing 767s. Those planes are scheduled to be delivered in 2010.
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