Another questionable energy deal $16 jet fuel

It looks like crony capitalism is still rampant in the Obama administration.  First there was the $535 million loan guarantee to Solyndra, the now bankrupt maker of solar panels.  Now, according to Investor’s Business Daily, the U.S. is forcing the Navy to buy 450,000 gallons of jet biofuel, the biggest federal purchase of biofuel ever, from an Obama-connected firm at $16 per gallon versus the normal price of less than $4 per gallon.

Investor’s Business Daily says:

A  member of Obama’s presidential transition team, T. J. Glauthier, is a ‘strategic advisor’ at Solazyme, the California company that is selling a portion of the biofuel to the Navy.  Glauthier worked on the energy-sector portion of the 2009 stimulus bill.  Solazyme had already gotten a nearly $22 million chunk of change out of the taxpayers thanks to the 2009 stimulus.

And this is only the beginning of this two-for-one bad deal — swindling taxpayers while ravaging national security. Obama’s Agriculture and Energy departments and Navy plan to spend $510 million over three years buying biofuel for military and commercial purposes, bypassing Congress by “leveraging Defense Department procurement.”

See also:

EIA says Clean Energy program will increase electricity costs 29%

Electricity generated by wind power may raise temperatures and costs

The cost of energy conservation

Another Federal Boondoggle?


  1. The above aritlce is innacurate and misleading. It is Dynamic Fuels which will manufacture and sell the product to the US Navy. The contract is for 100,000 gallons of jet fuel and 350,000 gallons of marine distillate. Solazyme will be only assisting Dynamic Fuels in fulfilling their contract by supplying algal fuel in the production.
    Information can be found at 

  2. Incredibly naive post.  No one is forcing the Navy or any other of the armed forces to explore renewable and portable alternative fuel sources.  It’s a desperate matter of national security.

    What happens when we go to war with countries that supply us oil?  Kinda difficult to fly billion dollar B2 bombers on republican hot air.  So at the very least — regardless of what stock you put in the importance of finding renewable energy sources — the investment that the military is now making has everything to do with national security and absolutely nothing to do with “crony capitalism.”  Our military shouldn’t be dependent on the very countries that foment hatred against us.

    1. And why are you not blasting Obama for delaying the XL pipeline project.
      That surely helps lower the sheikdom fuel imports yeah?
      Your so stuck on liberal, it just plain stinks Jasper.

  3.   The price for the biofuel itself in this contract is actually $26 per gallon ($12M for 450K gal) and is more than 8 times the current rate for conventional JP-8 jet fuel and F-76 diesel oil (both less than $3 a gallon to the military in bulk).  Even so, this price is a huge deception.  DOE is separately subsidizing Solazyme for the algae oil (that goes to Dynamic Fuels for hydrotreating) to the tune of $21 Million.  USDA is also pumping in money via subsidies and loan guarantees.  To get an idea of the real price of 2nd generation biofuels, Honeywell UOP just won a DOE contract for $1.1M to produce 100 gallons of fuel–that’s $11,000 a gallon.  This is how the Administration and the Navy are spending our tax dollars while carrying a $15 Trillion debt and cutting defense.  North America is already littered with failed ethanol biofuel enterprises that never delivered and closed up as soon as the subsidies dried up.  America’s fanciful mandatory ethanol policies have driven up the world-wide price of food 250% and resulted in the United States actually IMPORTING biofuel to meet federal mandates.  How insane to spread starvation in other countries by enticing their farmers to fuel crop production instead of food production (e.g., Brazil), and to trade U.S dependence on cheap imported petroleum for a dependence upon expensive imported ethanol and biodiesel. How has all this waste improved national security and why would anyone do this to America if there wasn’t a political gun to their head? Is that the kind of “green” that Maersk wants to be associated with?

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