U.S. to Invest $62 Million in Biofuels

A RAND study said biofuels will remain far more expensive than petroleum-based fuels.

The U.S. Government has said it intends to make $62 million available to develop biofuels and related technologies.

$30 million in federal funding will be used to match private sector investments in the development of biofuels to replace diesel for commercial shipping, the military, and aviation.

The Department of Energy said the remaining $32 million will be used in earlier stage research including $20 million to support existing, as well as pilot-scale and demonstration-scale biofuel refineries.

The remaining $12 million will be used to support up to eight projects to develop bio-based transportation fuels.

Rear Admiral Philip Cullom, director of Naval Operations Energy and Environmental Readiness Division stated in 2011 that "pursuing sustainable resources, such as alternative fuels that are drop-in replacements assures our performance and mobility while protecting us from the volatility of the fossil fuel market."

To qualify as a 'drop in' replacement, biofuels have to not damage engines, storage, transmission and fueling infrastructure or cause any health and safety issues. 

This news comes after the recent approval by the House Armed Services Committee of the 2013 Defence Appropriation Bill that would prevent the armed forces from purchasing biofuels for military operations unless they cost less than fossil fuels. 

It would also prevent the Department of Defense from building its own bio-refineries.

Ship & Bunker reported last month that a study by the RAND Corporation (RAND) said biofuels will remain "far more expensive than petroleum-based fuels" with cutting fuel use the only effective solution to reduce what the Pentagon spends on fuel.

The military says by the end of 2020 it aims to have half the fuel used in Navy ships and aircraft from renewable sources.