Half-Billion in Biofuel Subsidies Announced
August 18, 2011 – The Obama administration announced this week during its bus tour of the Midwest it would spend up to $510 million during the next three years to to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation. The Administration is also asking the private sector to match dollar-for-dollar each federal dollar received to cover the costs of constructing or retrofitting refineries for so-called advanced biofuels, made from animal waste, algae, or other materials.
The U.S. Navy says it would purchase the fuel to go toward a commitment to obtain half its energy from non-fossil fuel sources by 2020.
“America’s long-term national security depends upon a commercially viable domestic biofuels market that will benefit taxpayers while simultaneously giving Sailors and Marines tactical and strategic advantages,” said Navy Secretary Ray Mabus. “Today’s announcement not only leverages our home grown fuel sources to support our national security, but it also helps advance the biofuels market, which ultimately brings down the cost of biofuels for everyone.”
Pioneer plants will demonstrate advanced technologies to produce infrastructure-compatible, drop-in renewable fuels from America’s abundant biomass resources, added Energy Secretary Steven Chu. “It will support development of a new, rural-focused industry that will replace imported crude oil with secure, renewable fuels made here in the U.S.”