Wednesday's test is the latest in a series of demonstration flights by the aviation industry, which hopes to be using biofuels within five years. The flight was the first by a US carrier to use an alternative fuel source, and the first in the world to use a twin-engine commercial aircraft (rather than a four-engine plane) to test a biofuel blend.
The flight from Houston's Bush Intercontinental Airport completed a circuit over the Gulf of Mexico, and pilots carried out a series of tests at 38,000ft (11.6km), including a mid-flight engine shutdown.
"The airplane performed perfectly," said test pilot Rich Jankowski. "There were no problems. It was textbook."
Continental Airlines chief executive Larry Kellner described the biofuel as a "drop-in fuel", which meant that no modification to the aircraft or its engines was required. The fuel is also understood to meet and exceed specifications necessary for jet fuel, including a flash point and a freezing point appropriate for use in aircraft.
"The challenge will be to produce it in an efficient way in the quantities we need," Mr Kellner said.
The biofuel used in the demonstration flight was a blend of two different types of alternative oils - algae and jatropha. Jatropha is a plant that can grow successfully in poor soils and marginal land, yet it yields four times more fuel per hectare than soybean. However, algae is viewed by many as a key fuel for the future because it is fast growing, does not compete with food crops for arable land, and yields up to 30 times more fuel than standard energy crops. But despite advances in the technology, biofuels derived from algae have yet to be proven as commercially competitive.
Despite airlines continually improving the fuel efficiency of their aircraft over the past three decades, a growing number of aircraft making more flights has seen the sector's global emissions rise sharply. As a result, the aviation industry is keen to embrace the environmental benefits that biofuels can offer.
In February 2008, a Virgin 747 flew from London to Amsterdam partly using a fuel derived from a blend of Brazilian babassu nuts and coconuts. And at the end of December, one engine of a Air New Zealand 747 was powered by a 50/50 blend of jatropha plant oil and standard A1 jet fuel.
Conwy County Borough Council has backed plans for a pilot tidal energy scheme off the North Wales Coast.
The £150 million scheme at Llanddulas in North Wales would provide a testing facility for turbine designers and manufacturers, and assess the environmental impact of turbines.
The project was given approval by the council as part of a strategic regeneration strategy for the Conwy coast, prepared by consultant Capita Symonds.
Paul Terry, Capita Symonds, said: "Tidal power will play a key role in providing a sustainable energy source for future generations. The North Wales coast is an ideal place for such a scheme as it’s blessed with a good tidal range and suitable ocean depth." He added that the project could also help protect the coast from rising sea levels, storm surges and coastal erosion.
The regeneration strategy also calls for seven new visitor centres costing £30m should be built at key locations stretching from Conwy to Rhuddlan. But North Wales Tourism chairman Chris Jackson raised doubts over whether the proposals could realistically be funded in the current economic climate. The council’s approval now means that Capita Symonds will seek funding for feasibility studies and investigations to develop a business case for the scheme.
Climate Change Minister, Greg Barker, has launched a consultation on the Government's strategy to boost energy self-sufficiency in communities.
The public debate about microgeneration will look at ways to ensure the quality of generating technology and its installation, how to improve available products, and how to develop the microgeneration supply chain while providing more accessible advice.
The consultation follows last week's news that the Government is to overturn a ban on councils selling "green" electricity back to the national grid by the end of the year.
Mr Barker said“I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people.Microgeneration is a key part of this vision.
“By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust.”
More information can be found on the Microgeneration Strategy consultation web page
A report from the think-tank Civitas warns that the increasing cost of energy, which has been driven up as a result of green policies could hit the UK's manufacturing sector - just as the country needs industry to help boost the economy.
The report said efforts to tackle climate change through cutting greenhouse gas emissions and increasing renewable energy generation could significantly push up energy bills for business.Extra costs are put on energy from policies including the EU's emission trading scheme, the renewables obligation to boost investment in technology such as wind power, and the climate change levy which taxes energy use in businesses and the public sector. Also, the Labour Government's climate change strategy had already added an extra 14% on homeowners' electricity bills and 21% on business bills.
Last year's renewable energy strategy could have created "surcharges" of up to 70% for businesses, and 33% for domestic customers by 2020, the report from Civitas claimed. The study warns the new coalition Government's energy policy could be as damaging to manufacturing industry as the previous administration.
The review by economist Ruth Lea and Jeremy Nicholson, director of lobbyists the Energy Intensive Users Group, said the UK was badly placed to meet its commitments to boost renewables as it was starting from such a low base. Even without the extra costs imposed to pay for climate change policies, Britain has high industrial electricity prices, which threaten its competitiveness.
Ms Lea said: "The economy desperately needs a competitive and thriving manufacturing sector if it is to prosper. Competitive energy prices are vital to the success of manufacturers, especially energy intensive users.Government energy policies are, however, remorselessly driving up energy costs thus risking the 'migration' of manufacturing plants to economies where the costs are lower."