U.S. Department of Defense Backs Three Biofuel Projects for Aviation Fuel

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Defense has rolled out draft proposals for three biofuel projects that will produce aviation biofuels for the military. The contracts, which total some $16 million to $17 million, are to meet the Pentagon's plan to have aircraft running on biofuel by 2016.

Emerald Biofuels LLC (Golf, Illinois), Fulcrum Biofuels LLC (Pleasanton, California) and Natures BioReserve LLC (Akron, Iowa) are developing plant projects in Louisiana, Nevada and Nebraska, respectively, that are scheduled to begin construction by mid- to late 2013.

Emerald is planning to construct an 85 million-gallon-per-year plant in Plaquemine, Louisiana. The facility will be within the Dow Chemical Company (NYSE:DOW) plant that uses Honeywell International Incorporated's (NYSE:HON) UOP/Enil EcoFining process technology to process animal fats and oils into biodiesel. Completion of the project is expected by October 2014.

Fulcrum is developing a 10.5 million-gallon-per-year plant that will be located in Virginia City, Nevada. The plant will process municipal solid waste feedstocks to produce the renewable fuel. It is expected to be completed by the fall of 2014.

Natures BioReserve is planning to construct a 60 million-gallon-per-year plant near Dakota City, Nebraska, that will process animal fats from beef processor Beef Products Incorporated. This plant is not expected to be operational by mid-2014.

The military has plans to have drop-in military-compatible fuels with initial production capacity by 2016 at an average cost of less than $4 per gallon.

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