Is a Domestic Biofuel Industry Necessary for National Defense?

1. Is a Domestic Biofuel Industry Necessary for National Defense? Erick Castro Scott Bishop Brad Coleman Gary Blumberg Anthony Ripley

2. Biofuels Background • Biofuels = fuels from recently processed biomass • Biomass (organic matter) referred to as feedstock • Two primary types of biofuel: ethanol, biodiesel • 1st Generation biofuel: carbohydrate-based • 2nd Generationbiofuel: cellulose-based • 3rd Generationbiofuel: microalgae/organisms

3. Congressional RFSmandate New growth industries 16 Billion 4 Billion 15 Billion

4. Biofuel Proponents/ Detractors Detractors • Insignificant impact on fuel supply • Currently more expensive • Env. benefits in doubt • May increase CO2 levels • May consume more energy to produce than energy provided • As a direct substitute, biofuel would be priced at market rate • No increase in military capability • Same logistics as oil Proponents • Independence from foreign oil sources • Drop-in replacement for oil • Reduce price of oil • Cost projected to drop below current price of fuel • Claims lower lifecycle carbon footprint • Hedge against volatile fuel prices • DOD should initiate investment

5. Biofuels won’t remove volatility

6. DOD Energy Useby Service • DOD is the largest consumer of petroleum in the world • DOD should lead biofuel research • USAF: 62M • USN: 25.3M • USA: 21M • USMC: 4.7M • Total: 113M* *2010 consumption

7. U.S. Petroleum Use • DOD accounted for 1% of all U.S. energy consumption • DOD accounted for 3.2% of U.S. petroleum use in FY2011 • DOD accounted for 0.69% of world petro use in FY2011

8. Proportional Costs of Biofuel • Department of the Navy has committed to spend over $200M to start a domestic biofuels industry OR • Fund an additional 1,300 sailors. • FY13 shipbuilding plan Joint High-Speed Vessel cost $189M • R&D for energy saving technology

9. Opportunity Costs of Biofuel • Paying more for biofuels reduces funds available for innovations which give the DOD an operational advantage and reduce dependence • Current innovations which provide a tactical advantage and reduce fuel consumption: • Solar power tactical equipment • Low consumption electronics • Higher capacity batteries • Insulated tactical shelters (tents)

10. Petroleum: Logistical Vulnerability • Convoys are composed primarily of: • USMC: fuel & water are 70% logistic demand • Army: fuel & water are 80% logistic demand • Costs to protect convoy: • Manpower diverted from tactical operations • 50:1 casualty rate • Decreased lethality • Decreased endurance

11. Alternative technologies • Fuel saving technologies: • Ground Renewable Expeditionary Energy Network System (GREENS) • Solar Portable Alternative Comm Energy System (SPACES) • Rucksack Enhanced Portable Power System (REPPS) • Tactical Water Purification System (TWPS) • Lightweight Water Purification System (LWPS) • Hybrid solar-battery-generator • DC air conditioners • These examples reduce the logistical demand and provide an operational advantage. • These are some of the opportunity costs for investing in drop-in replaceable fuels. Biofuels do NOT reduce the logistical vulnerability

12. DOD and Defense Production Act • DOD Procurement Failures • $436 Hammer • $640 Toilet Seat • $7,600 Coffee Maker • Common Detracting Trait • None provided a substantial operational advantage to DOD • Adequate* substitutes readily available *Adequacy infers that COTS items are “good enough” to accomplish the intended task. • DPA Examples of Success • Micro chip • Nuclear Power • GPS • Secure Radio Tech. • Common Beneficial Trait • Each provided a substantial operational advantage or capability to DOD • Nothing available to provide comparable results

13. Conclusion and Recommendations • Conclusion • Biofuels do not reduce the logistical vulnerability • Does not provide added value • Higher performance • Operational advantage • Recommendation • Divert funds to develop technologies which reduce fuel and water demand on the battlefield • If biofuels are a congressional priority fund as R&D • Mandate policy to hedge against volatility

14. Questions? DR. “MR. T” I pity the fool who is insecure

18. Domestic Petroleum Sources • IEA World Energy Outlook projects(2012 edition) • US becomes a net exporter of natural gas by 2020 • Almost self-sufficient in net energy by 2035. • Energy independence met with no fed govexp

19. Petroleum Use: The Bigger Picture U.S. Transportation data from Department of Transportation Bureau of Transportation Statistics

20. GREENS

21. REPPS & SPACES REPPS SPACES

22. TWPS/LWPS TWPS LWPS

23. Hybrid Power / DC Airconditioners

24. Making Ethanol (Corn) Dry Milling Process Source:http://www.ethanolrfa.org/pages/how-ethanol-is-made

25. Making Ethanol (Corn) Wet Milling Process Source:http://www.ethanolrfa.org/pages/how-ethanol-is-made

26. Making Ethanol (Cellulose) Source: http://www.csa.com/discoveryguides/biofuel/review6.php

27. Making Biodiesel Source: http://biodieseltutorial.utahbiodieselsupply.com/howitsmade/

28. Making Biofuel (Algae) Source: http://chemengineeringposts.wordpress.com/2012/02/20/what-about-algae-2/

29. Fischer-Tropsch Process Source: RAND Report “Alternative Fuels for Military Applications”

30. Hydrotreated Renewable Oils Source: RAND Report “Alternative Fuels for Military Applications”