US Government makes major investment in biofuels

The Obama administration is announcing this week that they are making an historic investment in biofuels by purchasing 450,000 gallons of drop-in biofuel made from waste cooking oil and from an algae-based system. The fuel is called “drop in” because it can be blended with the traditional fuels used now with no need for equipment modifications.

Navy Secretary Ray Mabus and USDA Secretary Tom Vilsack Announce Largest Ever Government Purchase of Biofuel
Biofuel Purchase Advances President Obama’s Energy Security Goals

WASHINGTON, December 5, 2011 — Today, U.S. Navy Secretary Ray Mabus and U.S. Department of Agriculture Secretary Tom Vilsack announced that the Defense Logistics Agency (DLA) signed a contract to purchase 450,000 gallons of advanced drop-in biofuel, the single largest purchase of biofuel in government history. While the Navy fleet alone uses more than 1.26 billion gallons of fuel each year, this biofuel purchase is significant because it accelerates the development and demonstration of a homegrown fuel source that can reduce America’s, and our military’s, dependence on foreign oil.

The Defense Department will purchase biofuel made from a blend of non-food waste (used cooking oil) from the Louisiana-based Dynamic Fuels, LLC, a joint-venture of Tyson Foods, Inc., and Syntroleum Corporation, and algae, produced by Solazyme. The fuel will be used in the U.S. Navy’s demonstration of a Green Strike Group in the summer of 2012 during the Rim of the Pacific Exercise (RIMPAC), the world’s largest international maritime exercise.

As part of his energy security goals, outlined in March 2011 in the “Blueprint for a Secure Energy Future,” President Obama directed the Departments of Agriculture, Energy and Navy to work together to advance a domestic industry capable of producing “drop-in” biofuel substitutes for diesel and jet fuel. Responding to that challenge, in August 2011, the Secretaries of Agriculture, Energy and Navy announced an intention to invest up to $510 million during the next three years in partnership with the private sector to produce advanced drop-in biofuel to power military and commercial transportation. While that investment awaits Congressional action, today’s announcement uses the existing authority – leveraging Defense Department procurement – to support this energy security goal.

This is a smart move that will help jumpstart this important energy sector.