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

1. 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

2. Three Numbers
• Usage: 117 million barrels of oil
• Cost: $17.3 billion
• 80% of the Federal Government’s Energy Use

3. Why are Alternatives to Petroleum Needed?
Budgetary Threats Defense Logics Agency - Fuel Price Per Barrel
• Rising Costs
• Volatility
• Unbudgeted offsets

4. Why are Alternatives to Petroleum Needed?
Strategic Threats
• Oil Dependence Creates
Military Missions
• Oil Dependence
Undermines American
Foreign Policy

5. Mission Requirements
• Drop‐in capability
• Feedstock supply and diversity
• Scalability
• Distribution system compatibility
• Cost‐competiveness

6. The Services’ Alternative Fuel Goals
Navy Air Force
• By 2020, the Department of • By 2016, the Department of
Navy will obtain 50% of the the Air Force will be able to
Fleet’s liquid fuel from acquire 50% of its domestic
alternative sources. aviation fuel requirement
• Will deploy a “Great Green from alternative fuels.
Fleet” for global operations by
• Must be sourced “Cost
2016.
Competitively”
• Will partner with industry and
government agencies to
encourage a cost competitive
advanced biofuel industry.

7. The Potential Market
• Air Force • Navy
– 387 million gallons per – 300 million gallons per
year (MGY) by 2016 year by 2020
(only if cost-competitive)

8. The Military Can Catalyze a New Industry
• US Steel Industry
• Nuclear Power
• Global Positioning
System
• The Internet
• Semiconductor and
Microelectronics

9. The Great Green Fleet
July 2012, RIMPAC, Hawaii