Military Biofuel Costs Slashed Thanks to Massive Navy Purchase
December 7, 2011 10:32 AM
comment(s) - last by
Fuel is still nearly five times as expensive as traditional fuel
For better or worse the U.S. military is trying to fight an "army of one" campaign to
switch its massive fuel consumption base
to domestic biofuels, safeguarding itself from foreign volatility. And despite some small bills to the U.S. taxpayers the push appears to be working.
Biofuels work pretty much like any production industry -- you produce more, and price per unit drops. Back in October 2010 the Navy purchased 20,055 gallons of
whopping cost of $424/gallon
. At the time that was one of the biggest U.S. purchases of a (non-corn ethanol) biofuel to date.
Fast-forward a year and the Navy is back at it. It's
a reported $12M USD to get 450,000 gallons of biofuel. The bad news? The fuel cost works out to around $26.67 per gallon -- around 6 to 8 times as much as traditional gas. The good news? The cost per gallon has plunged by a jaw-dropping factor of 15.9.
A peek at the algae biofuels production process. [Image Source: Solix Biofuels]
While the incredible cost reduction is unlikely to continue at its current pace, the purchase validates something some national security and environmental advocates have been emphasizing all along -- if you produce more, costs will drop.
The latest fuel purchase is a mixture of repurposed cooking oil ("yellow grease") from Tyson Foods, Inc. (
) and algae-based oils from Solazyme, Inc. (
). Tyson is current partnered with a refining company named Syntroleum Corp. (
) in a joint venture called Dynamic Fuels. The Navy's contract is with Dynamic Fuels, who has signed a subcontract with Solazyme to buy its algal oils for refining, to help fill the large order.
Navy Secretary Ray Mabus lauded the purchase as helping to grow the domestic biofuels market. The fuel will be used to help power the Navy's "green" Carrier Strike Group during exercises in the Pacific Ocean next summer.
The U.S. Navy's "green" Carrier Strike Group [Image Source: USN]
The Navy, which uses 80,000 barrels of oil a day (3.36M gallons/day), has made the amibitious pledge of getting 50 percent if its fuel from fossil fuel alternatives by 2020. At current demand levels, that would work out to around 613M gallons of biofuel a year.
It's not alone in that objective. The U.S. Air Force now has
98 percent of its aircraft
ready to run on a biofuel blend (though the allowed amount of biofuel in the blend is application-dependent).
The U.S. Armed Forces accounts for about 2 percent of total U.S. fuel consumption. Of last year's approximately 4.62 billion gallon, $15B USD fuel budget, 75 percent was used in overseas operations, while 25 percent was utilized at home.
This article is over a month old, voting and posting comments is disabled
RE: A Real Green Strike Force
12/9/2011 5:28:08 AM
Nuclear debates aside, I think this is a little naive:
"And you don't build a ship around a slight "what if". You build it to fight and do the best job possible at that."
Ideally, in a land of magic rainbows and bunnies, this is how military equipment is designed and purchased. In reality, it boils down to dollars and government approval. Everything is a compromise, and the biggest compromise of all is usually "price effectiveness" over "combat effectiveness".
That being said, the U.S. military is one of the best-equipped militaries in the world (arguably THE best).
"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
Running on Empty: U.S. Defense Desperate for Biofuels
July 11, 2011, 10:31 AM
USAF Certifies First Aircraft for Biofuel Use
February 14, 2011, 10:23 AM
Navy's New Experimental Ship Runs on Algae Biofuel Which Costs $424/Gallon
October 28, 2010, 4:08 PM
Green Gold: Algae, Possibly The Next Popular Biofuel
December 9, 2008, 10:00 AM
Nail Polish May Soon be Able to Detect Date Rape Drugs
August 26, 2014, 7:57 AM
SpaceX Falcon 9-R Rocket Suffers Malfunction, Self-Destructs During Test Flight
August 23, 2014, 9:36 AM
Texas Chosen as Site for SpaceX's First Commercial Launchpad
August 5, 2014, 1:44 PM
South Carolina Prison Finds Crashed Drone Carrying Drugs, Phones
August 1, 2014, 2:49 PM
NASA's Mars 2020 Rover Gains Seven New Instruments for Exploration
August 1, 2014, 1:30 PM
NASA Opportunity Rover Breaks Record for Most Miles Traveled on Another Planet
July 29, 2014, 1:38 PM
Most Popular Articles
Numerous Leaks Detail 4.7" iPhone 6 Processor, RAM, Cellular and NFC Capabilities
August 29, 2014, 10:37 PM
Windows 9: "Upgrade Now" Button Coming for Enterprise Updates, ARM Preview in H1 2015
August 26, 2014, 8:00 PM
L.A. Unified School District’s Apple iPad Contract Canceled Following Heavy Criticism
August 26, 2014, 12:37 PM
Apple Builds Not-So-Secret Secret 3-Story Tower for iPhone 6/iWatch Unveil
August 28, 2014, 3:41 PM
Netflix Accuses Comcast of Ripping Off Customers, Files to Block Merger
August 26, 2014, 5:49 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information