Posted on 05/07/2014 6:34:09 PM PDT by Kaslin
The Department of Defense (DOD) paid $150 per gallon for alternative jet fuel made from algae, more than 64 times the current market price for standard carbon-based fuels, according to a report released on Wednesday.
The Government Accountability Office (GAO) noted in its report that a Pentagon official reported paying “about $150 per gallon for 1,500 gallons of alternative jet fuel derived from algal oil.”
GAO’s report examined the financial challenges facing increased purchases and use of alternative jet fuels by federal agencies. “Currently, the price for alternative jet fuels exceeds that of conventional jet fuel,” the report noted.
The price for conventional jet fuel is currently $2.88 per gallon. GAO’s report reveals that federal agencies have paid significantly higher prices in an effort to promote biofuels in commercial and military aviation.
(Excerpt) Read more at freebeacon.com ...
Do those numbers include tax?
The 2.88/gal is pretty close to the wholesale untaxed price.
No the pentagon did not you me and all the rest of us producers taxpayers did
Green energy is just another way of plundering the tax payers. A whole lot of someones should go to prison for waste like that.
Active Duty ping.
The government doesn’t have to eat its own cooking.
The Pentagon pays an average of $400 to put a gallon of fuel into a combat vehicle or aircraft in Afghanistan.
Pentagon officials have told the House Appropriations Defense Subcommittee a gallon of fuel costs the military about $400 by the time it arrives in the remote locations in Afghanistan where U.S. troops operate.
http://thehill.com/homenews/administration/63407-400gallon-gas-another-cost-of-war-in-afghanistan-
A big issue for the Pentagon these days is supply lines that are stretched expensive and vulnerable. It would be better if they could produce energy on the spot rather than ship it long distance. So while $150 per gallon is bad ==$400@ gallon is worse.
(of course they’re not there yet. and by the time the biofuel production plant gets to the point where it can be dropped into remote US base somewhere —the US participation in the afghan war will be over... that said there will be other wars to come.)
That’s our Big Gubby!!
Thia is another way to destroy our military and our country.
$150 per gallon is reasonable for small quantity demonstration and validation lots of fuel.
The big issue is how expensive would such a fuel be in volume production to properly demonstrate viability.
Two things to consider.
At sea an aircraft carrier must have its aviation fuel delivered via military tanker which is pretty damn expensive - it's not like have gas stations in the middle of the Indian Ocean.
One reason why the Navy might be interested in converting algae into jet fuel is that while gas stations and military supply tankers may be in short supply in the middle of the Indian Ocean, one thing that is in bountiful supply is algae.
An onboard algae to fuel conversion plant fueled by an aircraft carriers nuclear power plant could allow a carrier to operate independently it's jets for long periods without re supply at a cost incidental to the operation of the carrier as a whole.
Wars, especially air wars, are won and lost by the supply or lack thereof of fuel.
I'll give this one a pass pending more information
Stupid.....
You can bet your ass that whatever company this fuel was purchased from were big democrat contributors.
I will add some macro economics to the discussion as opposed to micro economics.
A shoemaker makes 10 shoes a day and makes 10 dollars a shoe or 100 dollars a day.
What happens if the shoemaker works harder and makes 20 shoes a day ?
The answer is 200 dollars in micro economics and less than 200 dollars in macro economics.
If Nike makes 10,000 shoes a day and makes 10 dollars a shoe, they get 100k a day.
What happens if Nike makes 20,000 shoes a day ?
The answer is the price of the shoes falls through the floor and they might make nothing.
Now lets talk about 150 dollar a gallon fuel.
If you need a gallon of gas for your lawn mower and gas station 1 sells it for 5 dollars and gas station 2 sells it for 150 dollars. From a micro economic viewpoint, it is stupid to pay 150 dollars for a gallon of fuel.
Now you are the US military buying 100 million gallons of fuel and Chevron is selling 100 million gallons at 5 dollars a gallon. And Algeaon is selling 1 million at 150 dollars a gallon. Why should you every buy from Algeacon ?
You might want to buy 1 million gallons because you create a glut for Chevron which might lower the price to 3.5 a gallon due to the glut. Oil is always priced at the margin.
Navy Takes Biofuels Campaign Into Uncharted Waters
Since 2006, the Defense Logistics Agency has procured more than 36 million gallons of ethanol-and-petroleum blends for the military. The Navy in September ordered an additional 150,000 gallons of algae-based fuel from San Francisco company Solazyme. The new agreement is seven times the size of the initial 20,000-gallon contract awarded last year. The Navy is paying big bucks for these fuels.
The service consumes an average of 1.2 billion gallons of petroleum each year at a cost of $3 billion — about $2.50 per gallon. The service paid Solazyme $8.5 million to provide just 20,000 gallons of algae-based fuel — $425 per gallon. At that rate, it would cost the Navy some $142.8 billion for the 8 million barrels of biofuel needed to meet its 2020 goal.
Camelina-based fuel is a bit cheaper but still more expensive than petroleum. In September 2009 the DLA’s defense energy support center paid Montana’s Sustainable Oils $2.7 million for 40,000 gallons of camelina-based fuel. That comes to about $67.50 per gallon.
The 2.88/gal is pretty close to the wholesale untaxed price.
I would guess that they do include the tax. I haven't bought any fuel in a long, long time.
Federal taxes are Avgas $0.193 Jet-A $0.204.
State taxes vary widely. State Taxes in Aviation Fuels
3000 gallon fuel truck at $150.00 per gallon is $450,000 a truckload.
Is there any other ways this administration can squander taxpayer money???
This makes me think of Gabby Giffords for some reason.
Would a jet run on twelve year old scotch? It would be cheaper than Algal Oil jet fuel.
Do we really want to put a price on our future Earth? It is for the children afterall.......lol. I just can’t help myself.
Holy Cow. Texas is robbing the aviators. 20 percent?????
The story does not tell you that Obama has ordered them to do it.Its the environment don’t you know
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