Defense

November 14, 2012

Report: Military biofuel programs poised to drive major economic, job growth

The military’s plans to expand its use of biofuel in planes, ships and other vehicles would generate at least about $10 billion in economic activity and create more than 14,000 jobs by 2020, according to a report commissioned by Environmental Entrepreneurs.

Just as importantly, if DOD is able to expand its use of advanced biofuels like it has said it wants to do, it would jump-start the biofuel market, which in turn would speed adoption of biofuel by commercial airlines, vehicle fleets and other users, according to the report.

Led by the Navy and Air Force, the Department of Defense wants to reduce its dependence on oil by getting as much as 50 percent of its fuel from advanced biofuels by 2020. DOD’s top leaders have said reducing the military’s use of oil is essential to national security, troop safety and avoiding fuel price spikes.

But under the National Defense Authorization Act that Congress is expected to take up in the next several weeks, the military – the nation’s biggest user of oil and gasoline – would be prohibited from expanding its use of biofuel.

“The military often leads major economic transitions in our country – think about aviation, communications or the Internet,” said Nicole Lederer, co-founder of E2, whose 800-plus members include business executives and investors who advocate for sound environmental policy that can lead to economic prosperity.

“Yet right now in Washington, some shortsighted lawmakers are poised to block a potentially major transformation of our national energy supply – and also hold back the significant economic growth and job gains that would come with it,” she said.

“ACORE recognizes the important national security and energy security benefits of the U.S. military’s increased use of biofuel,” said retired Vice Adm. Dennis McGinn, president of the American Council on Renewable Energy. “This report from E2 also highlights the tremendous economic potential of the defense biofuels program. It has already attracted private capital for technological innovation and commercial-scale biorefinery construction, thereby creating geographically-diverse jobs.

“Most importantly, this initiative accelerates America’s move to a more diverse and secure energy portfolio,” McGinn said.

Russ Teall, president and founder of biorefinery builder Biodico, which recently signed an agreement to provide advanced biofuels to the U.S. Navy, said, “The military is the biggest driver of the biofuel industry right now. If Congress stops the military from doing what the military knows is best, Congress also could threaten the growth of the Made-in-America biofuel industry.”

E2 commissioned High Road Strategies, an industrial, economic and energy consulting firm, to conduct the study, which is based on biofuel goals previously announced by DOD. According to the report:

  • Between $9.6 billion and $19.8 billion of economic activity could be generated by 2020 if the DOD is allowed to meet its previously announced biofuel goals.
  • Between 14,000-17,000 new jobs could be created by 2020. If measured on a job-year basis, the total number of jobs created would be more than double that amount.
  • Of these jobs, more than 3,000 will be agricultural jobs from biomass production, and about 1,200 will be in biorefinery operation. An additional 10,000 jobs will be created from biorefinery construction.
  • These economic and job impacts will be broadly distributed geographically, with the greatest benefits to states that create the strongest incentives for biorefineries.
  • In order to meet the military’s cost and volume targets, advanced biofuel companies are leveraging $3.4 billion of private capital invested since 2007 to build new commercial facilities.
  • Military demand is helping to shape the early market and scale the advanced biofuel industry, which could help the commercial aviation industry and other industries to meet their hopes and plans to expand their use of biofuel.

 




All of this week's top headlines to your email every Friday.


 
 

 

Headlines November 21, 2014

News: Dempsey lays groundwork for larger 2016 defense budget - The top U.S. military official on Wednesday made the case for growing the base defense budget significantly over the $535 billion spending cap imposed by Congress for fiscal 2015.   Business: Boeing can bill $61 million that Pentagon withheld for months - The Pentagon withheld $60.5 million...
 
 

News Briefs November 21, 2014

Obama aide: U.S. should look at Ukraine military aid A senior aide of President Barack Obama says he believes the U.S. should consider giving Ukraine lethal, defensive military assistance to get Russia to think twice about its destabilizing behavior. Tony Blinken, the deputy national security adviser, cites serious violations by Russia of agreements not to...
 
 
Air Force photograph by SrA. Divine Cox

Kunsan AB hosts Exercise Max Thunder 14-2

Air Force photograph by SrA. Divine Cox A South Korean air force F-15 Strike Eagle lands Nov. 17, 2014, during Max Thunder 14-2 at Kunsan Air Base, South Korea. U.S. Air Force, Army, Marine Corps and Navy personnel and aircraft...
 

 
LM-facility

Lockheed Martin opens Surface Navy Innovation Center

Lockheed Martin has opened the Surface Navy Innovation Center in Moorestown, N.J., to support the development of new technologies for the U.S. Navy. The SNIC is a research, development and demonstration facility that brings tog...
 
 
raytheon-test

Raytheon successfully demonstrates integrated electronic warfare capabilities

EL SEGUNDO, Calif. – Raytheon, in collaboration with the U.S. Navy, successfully demonstrated an end to end, first of its kind, integrated electronic attack system during flight tests at the Naval Air Weapons Station Chi...
 
 

Three bases identified as F-16 aggressor candidate bases

U.S. Air Force photo by Tech. Sgt. Joseph Swafford Jr. A U.S. Air Force F-16 Fighting Falcon fighter aircraft assigned to the 18th Aggressor Squadron lands at Eielson Air Force Base, Alaska, Oct. 6 during RED FLAG-Alaska 15-1. RF-A is a series of Pacific Air Forces commander-directed field training exercises for U.S. and partner nation...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>