Yesterday’s Washington Examiner reported the following:
“In March, Gevo entered into a contract with the Defense Logistics Agency to supply the U.S. Army with 3,650 gallons of renewable jet fuel to be delivered by the second quarter of 2013,” Gevo announced this week in its first quarter financial report. “This initial order may be increased by 12,500 gallons. All shipments will be at a fixed price of $59 per gallon during the initial testing phase. These shipments are in addition to the renewable jet fuel supplied to the U.S. Air Force (USAF) and the U.S. Navy (USN).”
In plain English this means that the Defense Department is paying $59 per gallon for renewable jet fuel when regular jet fuel costs $3.73 a gallon. Note that this is called a ‘testing phase.’ I need someone to explain to me why you would test anything that costs almost 20 times what you are already using. I fully support green energy–but not until it is economically feasible. This is ridiculous.