The National Security Need for Advanced Biofuels

Why the U.S. Military is Embracing Biofuels – and What is the Market?

Andrew Holland, Senior Fellow, American Security Project Wednesday, November 28, 2012

Three Numbers

• Usage: 117 million barrels of oil

• Cost: $17.3 billion

• 80% of the Federal Government’s Energy Use

Why are Alternatives to Petroleum Needed?

Budgetary Threats

• Rising Costs

• Volatility

• Unbudgeted offsets

Defense Logics Agency - Fuel Price Per Barrel

Why are Alternatives to Petroleum Needed?

Strategic Threats

• Oil Dependence Creates Military Missions

• Oil Dependence Undermines American Foreign Policy

Mission Requirements

• Drop‐in capability

• Feedstock supply and diversity

• Scalability

• Distribution system compatibility

• Cost‐competiveness

The Services’ Alternative Fuel Goals

Navy

• By 2020, the Department of Navy will obtain 50% of the Fleet’s liquid fuel from alternative sources.

• Will deploy a “Great Green Fleet” for global operations by 2016.

• Will partner with industry and government agencies to encourage a cost competitive advanced biofuel industry.

Air Force

• By 2016, the Department of the Air Force will be able to acquire 50% of its domestic aviation fuel requirement from alternative fuels.

• Must be sourced “Cost Competitively”

The Potential Market

• Air Force

– 387 million gallons per year (MGY) by 2016 (only if cost-competitive)

• Navy

– 300 million gallons per year by 2020

The Military Can Catalyze a New Industry

• US Steel Industry

• Nuclear Power

• Global Positioning System

• The Internet

• Semiconductor and Microelectronics

The Great Green Fleet July 2012, RIMPAC, Hawaii