AIRSHOW-Biofuels to the fore in fight to reduce emissions

* Boeing says tests show biofuels can replace fuel

* Official approval for alternative fuel expected 2010

* Commercial projects to grow algae, jatropha to follow

* Weight, drag reduction being worked at in meantime

By John Bowker

PARIS, June 18 (Reuters) - Biofuels could be used to replace jet fuel in less than five years following recent tests by plane-maker Boeing (BA.N), while the industry says it is putting billions of dollars into improving its environmental impact.

Boeing's director for environmental strategy Billy Glover told Reuters that results from recent test flights using biofuels such as jatropha and algae had been "better than expected", meaning a partial replacement for jet fuel could be become a reality in "three to five" years.

"It works -- no problem. We don't have to make any changes to aeroplanes or engines," he said at the Paris Air show.

"We expect to get approval for the fuel from the American Society for Testing and Materials (ASTM) next year," he added.

The industry predicts that if 100 percent of all jet fuel was replaced with biofuels it would cut airline carbon emissions by 80 percent. This is because carbon is taken out of the atmosphere by growing plants before being put back in by planes.

Airlines including Virgin Atlantic [VA.UL>, Continental (CAL.N) and Air New Zealand (AIR.NZ) took part in test flights for Boeing over the past year. [ID:nL5283581]

BIGGEST THREAT

EADS-owned rival Airbus (EAD.PA) is planning its first commercial test flight with biofuels later this year, according to Axel Krein, the company's senior vice president of research & technology. He said Airbus currently spends 2 billion euros ($2.79 billion) a year on research and development -- the bulk of which goes into fuel efficiency.

"I am confident that 100 percent of jet fuel will come from biofuels. The question is, when is that date?" he said, forecasting that 30 percent of fuel could come from plants by 2030.