U.S. contracts for 100 million gallons of “drop in” biofuels

The government awarded three contracts for 100 million gallons of “drop in” biofuels for the Navy. The renewable fuels would be blended 1-to-1 with petroleum in ships and planes. The Pentagon said as the fuels become more widely available, the Navy will make them a regular part of its bulk fuel procurement. Agriculture Secretary Tom Vilsack said rural areas would benefit from expansion of the advanced biofuel sector.

The Energy Department said the contracts went to Fulcrum Bioenergy, recipient of a $105 million USDA loan guarantee early on Sept 4, to build a 10 million-gallon a year refinery at McCarran, Nevada, that converts municipal solid waste into fuel; Emerald Biofuels, to build an 82 million-gallon a year refinery on the Gulf Coast that converts waste fats to fuel; and Red Rock Biofuels, to buid a 12 million-gallon a year refinery in Lakeview, Oregon, using woody biomass to produce fuel.

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