The U.S. Departments of Agriculture, Energy and Navy will invest up to $510 million during the next three years in partnership with the private sector to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation. Increased use of advanced biofuels is a key component of the Administration’s energy security agenda, but there is currently a lack of this manufacturing capability for next-generation drop-in biofuels in the United States.
The joint plan of the U.S. Departments of Agriculture, Energy and Navy calls for the three Departments to invest a total of up to $510 million, which will require substantial cost share from private industry – of at least a one to one match. The partnership aims to reduce U.S. reliance on foreign oil and create jobs while positioning American companies and farmers to be global leaders in advanced biofuels production. The United States spends more than $300 billion on imported crude oil per year.
A recent market study Global Biofuel Production Forecast 2015-2020 forecasts the global biofuel production will reach 1,900 Million barrel in 2020, at a compound annual growth rate (CAGR) of 10% over the forecast period 2015 – 2020, with the U.S. leading in biofuel R&D and production.