Obama Administration Announces Investments in Biofuels

The Energy Department, the U.S. Department of Agriculture (USDA), and the U.S. Navy on July 2 announced $30 million in federal funding to match private investments in commercial-scale advanced drop-in biofuels. Drop-in biofuels are fuels that can serve as direct replacements or supplements to existing gasoline, diesel, and jet fuels, without any changes to existing fuel distribution networks or engines—and have the potential to significantly reduce U.S. reliance on oil imports. DOE is also offering a total of $32 million in new investments for earlier-stage research that will continue to drive technological breakthroughs and additional cost reductions in the industry.

In his Blueprint for a Secure Energy Future released in March 2011, President Obama set a goal of reducing oil imports by one-third by 2025, increasing energy efficiency, and speeding development of biofuels and other alternatives. As part of that effort, the blueprint directed the DOE, the Navy, and the USDA to collaborate to support commercialization of drop-in biofuel substitutes for diesel and jet fuel, which lead to the current Funding Opportunity Announcement (FOA). This FOA has a two-phased approach, with government and industry sharing in the cost. In Phase 1, applicants will submit a design package and comprehensive business plan for a commercial-scale biorefinery, identify and secure project sites, and take additional required steps spelled out in the announcement. Awardees selected to continue into Phase 2 will submit additional information for the construction or retrofit of a biorefinery.