The Navy previously paid about $1,000 for each barrel of biofuel it bought to test out in its jets. This new purchase, at first, will cost just as much: $26 per gallon, or $1,092 per barrel. That biofuel will then be blended with an equal amount of fossil fuel, producing 900,000 gallons — and an effective price of about $15 per gallon for that 50/50 blend. It’s “roughly half of what was paid in 2009,” according to Deputy Assistant Secretary of the Navy Tom Hicks, who serves as Mabus’ point man on energy issues.
But it is still far more than the Navy currently pays for its JP-5 jet fuel: $3.97 per gallon, or $167 per barrel.
As a developmental effort, this is something that Murdoc can get behind. First, the money poured into this should help get the foundation for more of this sort of thing up and running. Second, it will help get the military prepared to save some money (hopefully) down the road. Finally, it is an insurance policy against a severe restriction on the availability of traditional fuel.
Go read the whole thing at Danger Room.