DOD awards contracts to 3 biofuel producers

By Staff | November 03, 2014

In September, the U.S. Department of Defense awarded Defense Production Act contracts to Red Rock Biofuels, Fulcrum Bioenergy and Emerald Biofuels to construct and commission biorefineries. Together, the facilities will produce 100 million gallons of drop-in biofuels to serve military and private sector needs at an average price of $3.45 per gallon.

Fulcrum BioEnergy, based in northern Nevada, will produce 10 million gallons of biofuel from municipal solid waste. Red Rock Biofuels in Oregon will utilize woody biomass to create 12 million gallons of advanced biofuels.  Using waste fats, Emerald Biofuels will produce 82 million gallons at a Gulf Coast refinery. Both Fulcrum and Red Rock will deploy the Fischer-Tropsch process, and initial production of the facilities is to begin in 2016.

The Defense Protection Act was passed in 1950 for the purpose of providing investments in anything America needs, but doesn’t have at scale, for national security. “We’ve done it in a myriad of industries from steel to microchips,” said Secretary of the Navy Ray Mabus. “And energy is particularly called out... Today is a major milestone that only happened because of DPA, which is there to use for America’s defense.”