MILITARY ~ GOING ~ BIO - FUELISH

Audio: Source: NPR


WASHINGTON, July 5 (Reuters) - The Pentagon is pushing ahead with a $420 million effort to build refineries to make competitively priced biofuels, despite anger in Congress over the price the Navy paid for alternative fuel to test a carrier strike group this month.

The Pentagon plans provide $210 million in matching funds to help private firms build three refineries, each able to produce at least 10 million gallons of biofuel a year for military jets or ships, according to documents released this week.

Bio fuel costs 27.00 per gallon versus conventional fuel at 4.00 per gallon.
Proponents of Biofuel promote the idea that the prices will fall due to demand however,
a study by the RAND Corporation think tank said that while the U.S. Defense Department is a huge consumer of fuel at about 340,000 barrels per day, that figure is a tiny fraction of the 87 million barrels per day of global demand, too small to influence price significantly.




Source: Reuters