Navy Unnecessarily Paying $15 per Gallon for Bio-Fuel

WASHINGTON — (AFP) – Dec 5, 2011- The US Navy unveiled plans Monday for its biggest-ever biofuel purchase as part of an effort to reduce dependence on imported oil.

US Navy Secretary Ray Mabus said the 450,000 gallons (1.7 million liters) were part of the "largest single purchase of advanced drop-in biofuel in government history." The biofuel also "comes from non-food sources and does not increase the carbon footprint."

The purchase aims to meet President Barack Obama's goal "to achieve more energy security by finding ways to lessen our dependence on oil and fossil fuels," Mabus said. [...article]


"...the current structure of government support for biofuels has a number of problems. First, it is not cheap or cost effective relative to other kinds of fuel. Even with subsidies, ethanol is pricey and energy-inefficient. Biofuels currently require 35% more energy per BTU than oil and 61% more per BTU than natural gas, with a comparable difference in economics. In other words, only through government subsidies can current ethanol production compete with traditional fuels. More importantly, with the subsidies in place, the industry has no incentive to find ways to operate more efficiently." [article]