The U.S. Department of Defense has issued its first-ever procurement call for military-grade diesel and jet fuels blended with biofuels, the U.S. EIA reported late last month. The biofuels components are conditional on cost and performance, according to the May 2014 tender call. “The Navy’s interest in biofuels is limited to those fuels that can be used as direct replacements for petroleum-based gasoline and distillate fuels, also known as drop-in biofuels,” the EIA noted. Apart from some technical challenges with biodiesel blends, drop-in biofuels generally cost more than conventional fuels, and DoD is prohibited from paying a premium for alternative fuels. Last December, the Navy and the U.S. Department of Agriculture introduced a farm-to-fleet program to close the cost gap and increase production of drop-in biofuels.
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