Category: airplane

May 16

Warren Buffett’s Timeless Wisdom on the Volatility of the Airline and Automotive Industries

Revisiting Warren Buffett’s Stance on Transportation Investments

Warren Buffett, the renowned investor and leader of Berkshire Hathaway, has long been skeptical about the profitability of the airline and automotive sectors. Despite the transformative impact of these industries on modern society, Buffett’s analysis, dating back to 1999, remains remarkably relevant today. Even as Berkshire once invested in BYD, a leading Chinese electric vehicle manufacturer, they have been gradually reducing their stake, indicating a cautious approach to what many see as a revolutionary market.

Buffett’s Historical Perspective on Automotive and Airline Investments

In a 1999 interview highlighted in a 2014 investment blog, Buffett expressed his reservations about the long-term investment appeal of the automotive and airline industries. He observed that despite the vast number of car manufacturers that existed at the turn of the 20th century, only a few remain today, none of which have been particularly lucrative investments. Similarly, he noted that the airline industry had, up to that point, cumulatively earned zero profit since its inception—a startling statistic that underscores the high-risk nature of these businesses.

The Ongoing Relevance of Buffett’s Insights Amidst Modern Challenges

The enduring wisdom of Buffett’s views is underscored by recent troubles in the transportation sector, such as Tesla’s financial struggles, Boeing’s reputational damage, and significant losses reported by major airlines like Southwest. These issues reflect the inherent volatility and challenges within these industries, reinforcing Buffett’s skepticism about their suitability as long-term investments. As we continue to witness shifts towards electrification and sustainable transport solutions, Buffett’s cautious stance provides a critical lens through which to assess potential opportunities and pitfalls in these historically tumultuous markets.

May 14

You Can Now Power a Jet Airplane With Gas Leftover From a Landfill

You know the old saying: One man’s trash is another man’s aviation fuel. Alright, it may not be a saying…yet. But give it time.

Researchers at the University of Sydney in Australia have invented a chemical process to make jet fuel from the methane gas emitted by landfills. That’s right, they can power airplanes with the byproduct of our trash. Here are the details on how the process works, according to the study’s lead author:

“Non-thermal plasma is an electricity-driven technology which can excite gas at both a low temperature and atmospheric pressure. Essentially, what this means is this approach facilitates the conversion of the gas into value-added products by inducing plasma discharge within forming gas bubbles. The process doesn’t require heat or pressure, meaning it requires less energy, making it highly compatible with renewable energy power sources.”

Professor PJ Cullen from the University of Sydney’s School of Chemical and Biomolecular Engineering.

Besides being darn cool science, this discovery could solve two major problems.

The first problem is what to do with all our methane. The fermentation happening inside our landfills, and even inside our livestock, creates methane. Methane is a major greenhouse gas, probably responsible for one third of our current climate change issues.

Many modern landfills capture this gas and burning it to make electricity. That’s great for energy production, but not for carbon emissions. Concentrating it and then burning it isn’t a zero emissions solution, but is preferable.

The second problem is what to do about aviation. Planes currently burn a heavily refined fuel made from petroleum oil. And they burn a lot of it. Lithium ion batteries, which we use in current EVs, are far too heavy to be a solution for our current airline fleet.

You can fly a plane with biogas, such as the ethanol based stuff we distill from corn. But it is not as energy-dense as regular gas. You need 1.4 gallons to equal a single gallon of regular aviation fuel. This will dramatically reduce our jets’ ranges. And using 100% ethanol fuel for air transportation might tax our corn production.

Capturing the methane from our landfills, agriculture, and even sewage plants would be a much better solution for aviation. This gas is already being produced, needs to be burned somehow, and now we can use it to power airplanes. That’s a major win for science, for the human race, and for planet earth.

Next, read how Barcelona is using sewage plant methane to power buses, or see the full interview with Professor Cullen in the video below: