White House launches biofuels initiative linked to jobs creation

The US Departments of Agriculture and Energy and the Navy will invest up to $510 million over the next three years in partnership with the private sector to produce advanced drop-in aviation and marine biofuels to power commercial and military transportation.

The initiative, announced by President Barack Obama in August, follows the Blueprint for a Secure Energy Future, the administration’s framework for reducing dependence on foreign oil.

The biofuels initiative is being steered by the White House Biofuels Interagency Work Group and Rural Council, organizations that aim to enable greater cross-agency collaboration to strengthen rural America.

“Biofuels are an important part of reducing America’s dependence on foreign oil and creating jobs here at home,” Obama said.

The White House there was a lack of manufacturing capability for next-generation drop-in biofuels in the US. Secretary of Agriculture Tom Vilsack, Secretary of Energy Steven Chu and Secretary of the Navy Ray Mabus have developed a plan to jointly construct or retrofit several drop-in biofuel plants and refineries.

“America’s long-term national security depends upon a commercially viable domestic biofuels market that will benefit taxpayers while simultaneously giving sailors and Marines tactical and strategic advantages,” Mabus said.

“Today’s announcement not only leverages our home grown fuel sources to support our national security, but it also helps advance the biofuels market, which ultimately brings down the cost of biofuels for everyone.”

The White House said the joint plan calls for the three departments to invest a total of up to $510 million, requiring a substantial cost share from private industry of at least a one to one match.

At the Paris Air Show in June, Vilsack told ATW’s Eco- Aviation Today that there has been "extraordinary progress in the last 12 months" in understanding how biofuel blends can power flights.

"I think we're nearing a tipping point" in terms of building momentum toward use of biofuel on commercial flights, he said. "I think [biofuel powering airline flights] is not long-term. In the short term you'll see the benefits."

He added that the private sector needs "just a little push" from government in the form of loan guarantees and R&D grants to mitigate the risk of moving forward.

"I think the infrastructure is going to be there if the market is there," Vilsack said. "I'm sure if you have [airlines] interested, we'll get biofuel to airports. This is a wonderful opportunity for rural America. When policymakers are aware of potential job opportunities [that could be created by large-scale biofuel production] in rural areas that have had high unemployment, they become interested in backing biofuel development and are ‘reluctant’ to cut R&D funding.”