Navy to Buy $12 Million of Advanced Biofuels in Record Purchase
December 5, 2011
The U.S. Navy will spend $12 million to buy 450,000 gallons of alternative fuel for aircraft, ships and unmanned vehicles, the biggest government purchase of advanced biofuels, Navy Secretary Ray Mabus said.
The fuel will come from Dynamic Fuels LLC, a joint partnership of Tyson Foods Inc. and Syntroleum Corp., and Solazyme Inc., Mabus said today on a conference call. The cost will be about $26 a gallon, he said.
"This is still R&D," Mabus said. "As the market develops, you will see the cost come down."