It’s official: The Pentagon intends to develop diesel fuel for planes and trucks derived from oil seed crops and agricultural waste, and has awarded contracts to three companies to develop the plans for bio-refineries capable of producing 150 million gallons a year. The goal is to produce a biofuel costing less than $4 per gallon that uses organic waste materials instead of farm crops like corn and soybeans.
Under Phase One, the three contractors will map out designs and budgets for non-agricultural sustainable diesel production. In Phase Two, D.O.D. will award up to $180 million in additional funds to build at least one bio-refinery with enough renewable fuel capacity to meet the Department’s so-called “Green Fleet” plans.