Bloomberg News

Navy to Buy $12 Million of Advanced Biofuels in Record Purchase

December 12, 2011

Dec. 5 (Bloomberg) -- The U.S. Navy will spend $12 million to buy 450,000 gallons of alternative fuel for aircraft, ships and unmanned vehicles, the biggest government purchase of advanced biofuels, Navy Secretary Ray Mabus said.

The fuel will come from Dynamic Fuels LLC, a joint partnership of Tyson Foods Inc. and Syntroleum Corp., and Solazyme Inc., Mabus said today on a conference call with reporters. The cost will be about $15 a gallon, he said.

“This is still R&D,” Mabus said. “As the market develops, you will see the cost come down.”

--Editors: Daniel Enoch, Patrick McKiernan.

To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.


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