U.S. may help finance advanced biofuel production

U.S. President Barack Obama gave the Department of Defense, the Department of Energy and the Department of Agriculture the task to work with private industry to increase biofuel production. Reportedly, the three agencies are close to signing a memorandum of understanding for a joint venture that will invest in new facilities for advanced biofuel production. The Department of Defense is reportedly contemplating the use of the 1950 Defense Production Act which allows the military to source essential materials to provide a framework to invest in biorefineries. Currently, the biofuels industry in the United States is underfunded and does not have sufficient production capacity to meet demand. Tom Hicks, deputy assistant secretary of the Navy for energy, who spoke before the House Subcommittee on energy and power in June said, “Diversification to advanced biofuels is essential to sustain the U.S. military’s mission capabilities.” Lieutenant Colonel Melinda F. Morgan, speaking on behalf of the Defense Department said, “The Departments are exploring a variety of options to work with the private sector to provide alternate fuels to meet military and commercial needs.” (July 1, 2011)