The Air Force is by far the world’s largest customer of aviation fuel, spending about $6 billion a year on more than 3 billion gallons — nearly all of it from foreign sources.
However, I’ve noted previously that the USAF’s experimentation with coal-derived jet fuel cannot grow beyond the experimentation stage due to environmental standards passed in 2007.
A different program based on jet fuel from natural gas has also met resistance because of environmental concerns and also because it isn’t currently a money-maker for producers. Oil will have to be $120 to $140 a barrel for the synthetic production to be profitable, and apparently no one believes that prices will get back up there.
FWIW, Murdoc thinks it should be required that capability to produce this fuel in significant quantities be prepared, even if it isn’t run wide open. If we get to a point where we NEED this fuel to keep planes in the air, it will be too late to start building a plant.