Pentagon Spending on Renewable Energy to Jump $25 Billion by 2030

Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The U.S. military will increase spending on renewable energy to $26.8 billion by 2030, a dramatic increase over the $1.8 billion it spent in 2010 on green electricity, according to a recent analysis from Pike Research LLC (Boulder, Colorado). The report, "Renewable Energy for Military Applications," covers solar, wind, biomass and geothermal generation, as well as small "Smart Grid" projects and energy efficiency.

Taken as a whole, the various branches of the U.S. military constitute the largest single energy-using institution in the world, according to the Pike report. The Department of Defense (DoD) (Arlington, Virginia) reportedly consumed 3.8 billion kilowatt-hours of electricity per year and 120 million barrels of oil per year. DoD annual spending on energy is about $20 billion, about 75% of which goes to fuel and 25% to facilities and infrastructure. The DoD uses more energy annually than 100 countries, the Pike report said: "Energy is the lifeblood of the U.S. military, and of the supporting governmental infrastructure that facilitates and controls it."

"Military investment in renewable energy and related technologies, in many cases, holds the potential to bridge the 'valley of death' that lies between research & development and full commercialization of these technologies," says Clint Wheelock, president of Pike Research and co-author of the report. "As such, the myriad of military initiatives focused on fostering [clean technology] is anticipated to have a substantial impact on the development of the industry as a whole. This presents a sizable market opportunity for defense contractors, project developers and systems integrators, and technology developers across all renewable energy sectors."

Click on the icon at right for an annual summary of recent DoD outlays for renewable energy, and a projection of outlays to 2030.

The different services within the DoD have been ramping up spending on renewable energy for several years. In fact, the Pike report said the Pentagon has invested in at least 450 renewable energy initiatives in the last few years. The report notes that the Army is operating under a mandate to have 25% of its energy come from renewable sources by 2025, as well as reduce electricity consumption 30% by 2015. The Army is moving forward to build a 500-megawatt (MW) solar generator at the National Training Center in Fort Irwin, California. The generator is expected to begin operations by 2013, and become fully operational by 2022. "If all goes well, the project could double in size and scope by 2030," the report notes.

The Navy has launched its "Great Green Fleet" program under which power will increasingly come from biofuels, nuclear, fuel cells, and hybrid-electric propulsion technology. The Navy commissioned its first "green ship," the Wasp-class amphibious assault vessel, U.S.S. Makin Island, in late 2009. By relying on hybrid electric propulsion technology, that single ship will save an estimated $250 million in fuel costs over its lifetime.

The Navy and Air Force have also flown jets using a 50/50 mix of biofuels and J-8 jet fuel. The Air Force, which consumes an estimated 2.4 billion gallons of fuel per year, is in the process of certifying all of its airframes for alternate fuels by next year, the report observed.

Nearly 50% of the DoD's energy consumption goes to jet fuels, so the services are investing heavily in developing alternate transportation fuels, the report notes. "The current horse race to find a technologically and commercially viable approach to the production of fuels, and J-8 in particular, from renewable sources has only started," the report said. "It is likely that several approaches--photosynthetic, heterotrophic, cellulosic, fermentation, etc.--will contribute to the ultimate solution. All of these approaches will take advantage of a range of sources of energy and carbon or carbon dioxide."

In 2010, the DoD spent less than $1 billion on renewable energy, but it is expected to spend $3 billion in 2015 and $5 billion in 2025. Total outlays will reach $26.8 billion by 2030. The majority of the projected increase in spending will be devoted to "mobility applications," including portable soldier power and transportation fuels for land, air and sea vehicles. Energy for facilities operations will represent a significant portion of the market as well.

"Increased access to clean and reliable energy has become a leading priority for the U.S. Department of Defense and military agencies around the world," the Pike report says. The military's various renewable energy initiatives seek to improve energy independence and increase the efficiency and performance of all aspects of operations, including base and facility operations, transport and portable soldier power.

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