Defense buys 450,000 gallons of biofuel

   The U.S. Department of Agriculture and the Navy announced on Monday that the Defense Logistics Agency signed a contract to buy 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 annually, this biofuel purchase is significant because it accelerates the development homegrown fuels to reduce the military’s dependence on foreign oil, USDA said.
   The Defense Department will purchase biofuel made from a blend of non-food waste (used cooking oil) from the Louisiana-based Dynamic Fuels, a joint-venture of Tyson Foods and Syntroleum Corp., and algae, produced by Solazyme. The fuel will be used in the 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.
   President Obama’s “Blueprint for a Secure Energy Future,” released in March, directed the Agriculture and Energy departments and Navy to work together to advance a domestic industry capable of producing “drop-in” biofuel substitutes for diesel and jet fuel. In August, the departments 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, Monday’s announcement uses the existing authority – leveraging Defense Department procurement – to support this energy security goal.
   DLA will pay half the price for the Green Strike Group biofuel than it paid for biofuel for testing in 2009. Increased demand will likely continue this trend toward more cost-effective biofuel, USDA said.
   Renewable jet fuel produced by Dynamic Fuels has already been used in regularly scheduled commercial airline flights by KLM Royal Dutch Airlines, Finnair, Thomson Airways, and Alaska Airlines.
   “This contract clearly demonstrates that we’re building momentum for the continued commercialization of advanced renewable fuels production here in the U.S.,” said Andy Rojeski, a management committee member for Dynamic Fuels, in a statement.