Statement for the Record
Hearing on the Price of Energy Security: From Battlefields to Bases
House Armed Services Subcommittee on Readiness
Mary Rosenthal, Executive Director
Algal Biomass Organization
Chairman Forbes and Members of the Subcommittee, on behalf of the members of the
Algal Biomass Organization, I applaud the Subcommittee on Readiness for holding this
hearing which focuses on the price our military pays for energy security.
The Algal Biomass Organization (ABO) is a non-profit organization whose mission is to
promote the development of viable commercial markets for renewable and sustainable
commodities derived from algae. Its membership is comprised of people, companies and
organizations across the value chain.
As you have undoubtedly heard, algae grown in the United States is being used today as
feedstock for a variety of biofuels including biodiesel, biojet fuel, green gasoline and
ethanol. And in each case, the fuel produced with algae is a direct replacement for the
fossil fuel. This means that algae-based fuel would not harm engines or pipes. In fact,
algae-based biojet fuel has been flown in conventional jet engines, performing at least as
well as traditional jet fuel. In addition, algae-based fuel is produced entirely in the
United States and it does not displace crops used for food.
Algae based fuel shows great promise as a part of the US energy security equation. A
recent industry survey indicates that 70% of the producers of algae-based bioproducts
believe that it is likely that algae-based fuels will be cost competitive with fossil fuels by
2020. Additionally, 88% of respondents said continued federal support would accelerate
development of the industry. The Department of Defense can play a role in advancing
cost competitiveness of algae biofuels by entering into long-term contracts with biofuels
producers. It is our understanding, however, that current law prohibits DOD from
entering into contracts which are longer than five years.
Longer term contracting for biofuels would allow the Department of Defense to establish
price certainty for biofuels while also providing the biofuel market more stability. Long
term contracting is also expected to stimulate more private investment in biofuels,
resulting in a more robust US biofuel industry.
Mr. Chairman, ABO supports the Domestic Fuel for Enhancing National Security Act:
HR 1847. This bill has been referred to the Subcommittee on Readiness. We hope you
will bring this bill before the subcommittee for full consideration. HR 1847 would
amend Title 41 and Title 10 of the US Code, freeing the Department of Defense from the
five year limitation on biofuels contracting and allowing contracts up to 15 years.
Allowing the military to purchase biofuels under longer term contracts benefits the
Department of Defense in that it allows price certainty and allows the department to
more accurately budget for their fuel costs. In addition, long-term contracting
would provide market certainty to biofuel producers, encouraging their growth and
contributing to the viability and future cost-competitiveness of home-grown fuels
like algae.
Again, Mr. Chairman, the Algal Biomass Organization thanks you for holding this
hearing today and we encourage you to bring the Domestic Fuel for Enhancing
National Security Act before the Subcommittee on Readiness for consideration.