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$26 a gallon?! Navy's 'Green Fleet' meets stiff headwinds



A U.S. Navy oiler slipped away from a fuel depot on the Puget Sound in Washington state one recent day, headed toward the central Pacific and into the storm over the Pentagon's controversial green fuels initiative.
Conventionally powered ships and aircraft in the strike group will burn the blend in an operational setting for the first time this month during the 22-nation Rim of the Pacific exercise, the largest annual international maritime warfare maneuvers. The six-week exercise began on Friday.In its tanks, the USNS Henry J. Kaiser carried nearly 900,000 gallons of biofuel blended with petroleum to power the cruisers, destroyers and fighter jets of what the Navy has taken to calling the "Great Green Fleet," the first carrier strike group to be powered largely by alternative fuels.
The Pentagon hopes it can prove the Navy looks as impressive burning fuel squeezed from seeds, algae and chicken fat as it does using petroleum.
But the demonstration, years in the making, may be a Pyrrhic victory.
Some Republican lawmakers have seized on the fuel's $26-a-gallon price, compared to $3.60 for conventional fuel. They paint the program as a waste of precious funds at a time when the U.S. government's budget remains severely strained, the Pentagon is facing cuts and energy companies are finding big quantities of oil and gas in the United States.
Navy Secretary Ray Mabus, the program's biggest public booster, calls it vital for the military's energy security

Senator John McCain, the top Republican on the Senate Armed Services Committee, expressed outrage over the costs of the fuel at a hearing earlier this year.
But to President Barack Obama's critics, it is an opportunity to accuse the U.S. leader of pushing green energy policies even if they don't make economic sense. The bankruptcy of government-funded solar panel maker Solyndra last year was a previous example of that, they say.
"I don't believe it's the job of the Navy to be involved in building ... new technologies," he said. "I don't believe we can afford it."
But the U.S. Defense, Energy and Agriculture departments are moving ahead with their plans, jointly sponsoring a half-a-billion-dollar initiative to foster a competitive biofuels industry.
Mabus and officials at the Energy and Agriculture departments announced on Monday that they would make $30 million in matching funds available for companies working to produce large-scale biofuels plants. A second phase some time next year is expected to provide another $70 million in follow-on funding.
Field of dreams? The biofuels effort is one of the most ambitious Pentagon energy programs since then-Defense Secretary Donald Rumsfeld set up a task force in 2006 to find ways to reduce the military's fossil fuels dependency, involving more than 300,000 barrels a day.
"The reason we're doing this is that we simply buy too many fossil fuels from either actually or potentially volatile places on earth," Mabus told a conference on climate and security last month.
He says the Pentagon can use its buying muscle - it is the largest single consumer of petroleum in the world - to guarantee the demand needed for biofuel businesses to produce at a scale that will eventually drive down costs.
"We use 2 percent of all the fossil fuels that the United States uses," Mabus told the conference. "And one of the things that this means is that we can bring the market. And to paraphrase the old 'Field of Dreams' line, if the Navy comes, they will build it."
Mabus, a former Mississippi governor and ambassador to Saudi Arabia, aims for biofuels to supply about half of the Navy's non-nuclear fuel needs by 2020, about 8 million barrels a year.
His main tool in pushing the effort is the Defense Production Act, a measure passed in 1950 in the early stages of the Korean War to help the president mobilize the civilian economy for the war effort.
The act lets the Pentagon provide funding or loan guarantees to ensure production of critical defense needs. Since the 1970s it has been used to do things like bolster beryllium production and develop a specialized integrated circuit.

The Pentagon paid Solazyme Inc $8.5 million in 2009 for 20,055 gallons of biofuel based on algae oil, or $424 a gallon.
At what cost? 
But the initial small-batch cost of some biofuels has raised eyebrows on Capitol Hill, even among lawmakers used to dealing with billion-dollar defense cost overruns.
Solazyme's strategic advisers, according to its website, include T.J. Glauthier, who served on Obama's White House Transition team and dealt with energy issues, but also former CIA director R. James Woolsey, a conservative national security official.
For the Great Green Fleet demonstration, the Pentagon paid $12 million for 450,000 gallons of biofuel, nearly $27 a gallon. There were eight bidders for that contract, it said.
Republican lawmakers are pushing measures that would bar the Navy from spending funds on alternative fuels that are not priced competitively with petroleum and are accusing Mabus of failing to provide Congress with a full analysis of the cost and time it would take to create.
"They couldn't answer some of the very fundamental questions that you would want on that issue," said Randy Forbes, a Republican on the House Armed Services Committee who says studies show that biofuels 

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Wednesday, July 4, 2012

$26 a gallon?! Navy's 'Green Fleet' meets stiff headwinds


A U.S. Navy oiler slipped away from a fuel depot on the Puget Sound in Washington state one recent day, headed toward the central Pacific and into the storm over the Pentagon's controversial green fuels initiative.
Conventionally powered ships and aircraft in the strike group will burn the blend in an operational setting for the first time this month during the 22-nation Rim of the Pacific exercise, the largest annual international maritime warfare maneuvers. The six-week exercise began on Friday.In its tanks, the USNS Henry J. Kaiser carried nearly 900,000 gallons of biofuel blended with petroleum to power the cruisers, destroyers and fighter jets of what the Navy has taken to calling the "Great Green Fleet," the first carrier strike group to be powered largely by alternative fuels.
The Pentagon hopes it can prove the Navy looks as impressive burning fuel squeezed from seeds, algae and chicken fat as it does using petroleum.
But the demonstration, years in the making, may be a Pyrrhic victory.
Some Republican lawmakers have seized on the fuel's $26-a-gallon price, compared to $3.60 for conventional fuel. They paint the program as a waste of precious funds at a time when the U.S. government's budget remains severely strained, the Pentagon is facing cuts and energy companies are finding big quantities of oil and gas in the United States.
Navy Secretary Ray Mabus, the program's biggest public booster, calls it vital for the military's energy security

Senator John McCain, the top Republican on the Senate Armed Services Committee, expressed outrage over the costs of the fuel at a hearing earlier this year.
But to President Barack Obama's critics, it is an opportunity to accuse the U.S. leader of pushing green energy policies even if they don't make economic sense. The bankruptcy of government-funded solar panel maker Solyndra last year was a previous example of that, they say.
"I don't believe it's the job of the Navy to be involved in building ... new technologies," he said. "I don't believe we can afford it."
But the U.S. Defense, Energy and Agriculture departments are moving ahead with their plans, jointly sponsoring a half-a-billion-dollar initiative to foster a competitive biofuels industry.
Mabus and officials at the Energy and Agriculture departments announced on Monday that they would make $30 million in matching funds available for companies working to produce large-scale biofuels plants. A second phase some time next year is expected to provide another $70 million in follow-on funding.
Field of dreams? The biofuels effort is one of the most ambitious Pentagon energy programs since then-Defense Secretary Donald Rumsfeld set up a task force in 2006 to find ways to reduce the military's fossil fuels dependency, involving more than 300,000 barrels a day.
"The reason we're doing this is that we simply buy too many fossil fuels from either actually or potentially volatile places on earth," Mabus told a conference on climate and security last month.
He says the Pentagon can use its buying muscle - it is the largest single consumer of petroleum in the world - to guarantee the demand needed for biofuel businesses to produce at a scale that will eventually drive down costs.
"We use 2 percent of all the fossil fuels that the United States uses," Mabus told the conference. "And one of the things that this means is that we can bring the market. And to paraphrase the old 'Field of Dreams' line, if the Navy comes, they will build it."
Mabus, a former Mississippi governor and ambassador to Saudi Arabia, aims for biofuels to supply about half of the Navy's non-nuclear fuel needs by 2020, about 8 million barrels a year.
His main tool in pushing the effort is the Defense Production Act, a measure passed in 1950 in the early stages of the Korean War to help the president mobilize the civilian economy for the war effort.
The act lets the Pentagon provide funding or loan guarantees to ensure production of critical defense needs. Since the 1970s it has been used to do things like bolster beryllium production and develop a specialized integrated circuit.

The Pentagon paid Solazyme Inc $8.5 million in 2009 for 20,055 gallons of biofuel based on algae oil, or $424 a gallon.
At what cost? 
But the initial small-batch cost of some biofuels has raised eyebrows on Capitol Hill, even among lawmakers used to dealing with billion-dollar defense cost overruns.
Solazyme's strategic advisers, according to its website, include T.J. Glauthier, who served on Obama's White House Transition team and dealt with energy issues, but also former CIA director R. James Woolsey, a conservative national security official.
For the Great Green Fleet demonstration, the Pentagon paid $12 million for 450,000 gallons of biofuel, nearly $27 a gallon. There were eight bidders for that contract, it said.
Republican lawmakers are pushing measures that would bar the Navy from spending funds on alternative fuels that are not priced competitively with petroleum and are accusing Mabus of failing to provide Congress with a full analysis of the cost and time it would take to create.
"They couldn't answer some of the very fundamental questions that you would want on that issue," said Randy Forbes, a Republican on the House Armed Services Committee who says studies show that biofuels 

Environment on 

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