The White House and federal agencies today announced the award of three federal contracts with companies to produce more than 100mn USG/yr of drop-in biofuels for the US Navy beginning in 2016.
Emerald Biofuels was awarded a contract to construct refineries along the US Gulf Coast to generate 82mn USG/yr of military-grade fuel using waste oils and fats. Red Rock Biofuels was also awarded a contract to build a 12mn USG/yr refinery in Oregon that would rely on woody biomass as a feedstock to create biofuels.
Fulcrum Bioenergy was awarded a contract to build a 10mn USG/yr refinery in Nevada that uses municipal solid waste as a feedstock to generate fuels. Fulcrum was also awarded a $105mn loan guarantee from the US Department of Agriculture on 4 September to build the facility.
The contracts were awarded as part of a 2011 executive order directing the US Department of Energy, US Department of Agriculture and the US Navy to foster the development of cost-effective marine and aviation biofuels for the Navy. Biofuels generated as part of the presidential directive may be blended with 50pc traditional fossil fuels in order to meet the Navy's performance specifications.
The Navy declined to comment on any specific details of the contracts, including their values and how long the US Navy is obligated to take the fuels generated by the plants. But Navy secretary Ray Mabus said today that the fuels are estimated to be priced at an average of $3.45/USG, a price that he said was "incredibly competitive" with traditional fossil fuels.
"These three contracts are going to help expand the operational capability of both the Navy and the Marine Corps around the world," Mabus said.
Acting chairman of the White House Council on Environmental Quality Dan Poneman said the biofuels that will be developed by these plants will release roughly half the life-cycle greenhouse gas emissions compared to traditional fossil fuels.
"By advancing technologies that reduce our carbon emissions, this multi-agency partnership is demonstrating that by protecting our energy and environmental security, we will enhance our national security as well," Poneman said.
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