The Navy, Agriculture and Energy departments will participate in a $510 million investment in biofuel over three years, sharing about half of the private sector’s cost as a part of a broader government-wide initiative to bring advanced “drop-in” biofuels to the market. The Navy is set to cut in half its oil usage by 2025, and supply its growing use of biofuels estimated at 8 million gallons per year.
The government initiative pursues two broad goals – reducing American dependence on foreign oil and boosting America’s rural economies. The Energy Department already finances about 30 projects developing technology to produce biofuel from algae and lignocellulose.
The global biofuel production is estimated to reach 1,900 Million barrel in 2020, at a compound annual growth rate (CAGR) of 10% over the forecast period 2015 – 2020, says the market study Global Biofuel Production Forecast 2015-2020.