United States of America
Department of Defense
Energy & Transportation Viewpoints
Overview for “Low-Carbon Transport on the
Move” Conference
Ms Joelle Simonpietri
Headquarters U.S. Pacific Command
Energy Innovation and Experimentation (J81)
May 2015
U.S. Defense Policy Framework
Select statements from 2014 Quadrennial Defense review:
• …”Competition for resources, including energy and water, will worsen tensions in the coming
years and could escalate regional confrontations into broader conflicts – particularly in fragile
states.”
• …”the pace of technological and scientific innovation in the private sector, particularly in energy
markets, has the potential not only to revolutionize entire industries but also to enable new ways of
providing for U.S. security in the future.”
• …”The Department has invested in energy efficiency, new technologies, and renewable energy
sources to make us a stronger and more effective fighting force. Energy improvements enhance
range, endurance, and agility, particularly in the future security environment where logistics may be
constrained.
2
History: Petroleum and U.S. Economic Security
3
Source: HQUSPACOM Infographic developed from data provided by U.S. Energy Information Administration (EIA), Economist™
Petroleum Portion of US Trade Deficit Increased
from 30% in 1970 to 51% in 2010
•  Put
pressure
on U.S.
Dollar
•  Dwarfed
the 18%
trade
•  deficit
with China
•  Caused by
large and
inelastic
demand
4
U.S. Defense Energy Consumption
“Peace Dividend”
Afghanistan
Iraq
Transportation: Tactical and Non-Tactical
Stationary: Installations and Facilities
Source: http://www.dailyenergyreport.com/how-much-energy-does-the-u-s-military-consume/
5
Transportation: Largest DoD Energy Component
LPG
Gasoline
Jet Fuel
Transportation
Marine Diesel
Av Gas
Electricity
Natural Gas
Coal
Source: http://www.dailyenergyreport.com/how-much-energy-does-the-u-s-military-consume/
6
Transport: Significant U.S. Military Vulnerability
•  Afghanistan & Iraq Lessons Learned:
~ 1 in 8 casualties in Iraq 2003-2007
was associated with convoy resupply.
~1 in 24 resupply convoys suffered a
casualty in Afghanistan.1,2
•  Delivered cost of fuel: $5 to $425 per
gallon, equivalent to >$160,000 per 600man camp per day.3
Sources: 1Army Environmental Policy Institute (AEPI) Study 2Marine Energy Assessment Team Report, 3SERDP Forward Operating Base Report 4AEPI
Report ‘Fuel and Water for OEF’, 2009, Reuters Images
7
Asia-Pacific Regional View
36 Countries
Oceanic & island
USCENTCOM
Largest
developing
nations
Insufficient
fossil
energy
supply
Abundant
renewable
resources
USAFRICOM
8
8
Energy Security: Protection of Global Commons
Major LNG trade flows in South China Sea
2011 trillion cubic feet
9
Energy Security: Large Petroleum Flows
Major crude oil trade flows in South China Sea
2011 million barrels per day
10
PRC Active Posturing in South China Sea
Before
After
Johnson
Reef
Hughes
Reef
Sources: The Guardian 13 May 2015; Janes Defense Weekly 22 Feb 2015
11
PRC Active Posturing in South China Sea
Distances from PRC Air bases to new airstrips in South China Sea
Source: Janes Defense Weekly 22 Feb 2015
12
RELEVANT REGIONAL TRENDS
13
13
13
China’s Active Energy Portfolio Changes
•  Active program codified through Five-Year Plans
•  Decommission inefficient coal-fired power and industrial plants
•  Expand use of natural gas, nuclear, and renewables (esp. hydro and
wind)
Source: Fesharaki, FGE
14
New U.S. policy framework: Active energy demand
reduction & supply replacement
•  Energy Policy Act of 2005 (EPAct)
•  Energy Independence and Security Act of 2007 (EISA)
•  US Dept of Agriculture (USDA) & Dept of Navy partnership on biofuels and
renewable energy signed Dec 2009
•  US Defense Logistics Agency for Energy & Air Transport Association of
America Alternative Fuels Pact signed Mar 2010
•  USDA, Dept of Energy (DOE), Navy Defense Production Act June 2011
•  US Defense Dept Alternative (DoD) Fuels Policy signed Jul 2012
•  US DoD Energy Strategy signed Jan 2014
•  and more…
15
U.S. Defense & Pacific Energy Policy & Strategy
Department of
Defense
United States
Pacific Command
• Security First
• More fight, less fuel
• More options, less risk
• More capability, less cost
• Promote Cooperation
• Financial Savings
• Compliance
End State: Resiliency, Interoperability, Integration
16
PACOM’s Broad Spectrum of Energy Initiatives
Phase 1
Phase 2
Phase 3
More Fight, Less Fuel
More Options, Less Risk
More Capability, Less Cost
NSS
DoD Policy
OEPP
Plan
QDR
Service
Components
ü  Interoperability
ü  Integration
ü  Resiliency
15
1. Plans &
Operations
2. Information
3. Engagement
4. Innovation
5. Cyber
Assess
USPACOM
Strategy
10
Joint Energy
Security Working
Group
Train
20
Defense
Analysis
Study IndoPacific region
“WoG”
Dialogue
Country Study
Table Top
Training
Regional Assets
Resiliency
Analysis
Infrastructure
Engage Partners
Forums /
Exercises
Installation
Efficiencies
Equipment /
Material
State Partnership
Program
Policy /
Programs
Science &
Technology
Interagency
17
DoD Transporta+on Efforts: Efficiency and Renewable Fuels USS Makin Island (LHD 8)
Hybrid Propulsion Ship
North West Shelf Venture, Australia A-­‐10 Warthog cer#fica#on flight on 50% biofuel blend [Photo: U.S. Air Force Senior Master Sgt. Joy Josephson] Eglin Air Force base, Mar 2010 Na#onal Defense Test Ship ex-­‐Paul F. Foster (EDD 964) Opera#ng on a 50% biofuel blend 18
•  Year-­‐long event throughout calendar year 2016 •  Highlight deploying ships and aircra: with energy conserva<on measures (ECMs) or alterna<ve energy for propulsion •  Ushers in the “New Normal” •  Will work with exis<ng fleet schedules, therefore no dedicated group or i<nerary for 2016 USS Makin Island (LHD 8)
•  Need interna<onal biofuel acquisi<ons 19
DLA-­‐Energy’s Western Pacific Purchase Program •  First interna<onal biofuel solicita<on releasing May 2015 •  Covers the annual bulk petroleum requirements under the Western Pacific and Middle East Regions Neste Oil, renewable diesel refinery Singapore •  US will only purchase blended biofuels that will be cost compe<<ve with fossil fuels •  Fuel delivery will be for the period of 1 January 2015 through 31 December 2015 Pearl Harbor, Hawaii 20
21
Q&A
Provided by:
Ms Joelle Simonpietri,
HQUSPACOM J81 Energy & Contingency Basing
Joelle.simonpietri@pacom.mil
808-477-7830
22
Topics Covered
•
•
•
•
•
•
•
U.S. Defense & Energy Policy Framework
The U.S. Story: How we got here
The U.S. Defense Department energy consumption
Regional view of the Asia Pacific: Energy Flows, Trends, Issues
U.S. Federal and Defense Dept Actions: Policy, Initiatives
Great Green Fleet 2016
Optional: Biofuels “Mythbusters”:
Preconceived Notions vs Results to Date
–  Technical feasibility for aviation
–  Too expensive
–  Requires modification of vehicles
–  Requires duplicate distribution infrastructure
–  Competes with food production
–  Doesn’t address true fuel risk to operating budgets
23
ASSUMPTIONS
1. Energy and environmental security will
remain important DoD priorities for the
foreseeable future.
2. Countries in the Asia-Pacific will pursue
socio-economic development at their own
pace.
3. As long as the region remains dependent
on fossil fuel, energy will be regarded as
a "strategic" commodity, influencing
regional geopolitics.
4. Energy security inevitably links to other
security interests in the Asia-Pacific
region: maritime security, cyber security,
protection of critical infrastructure,
nuclear proliferation issues.
5. International energy security is a vast
domain with interrelated technical, economic
and political components.
–  Goals and objectives will link to
security issues beyond the established
bounds of the strategy proper.
6. Interagency cooperation and coordination
will be essential.
7. International cooperation in the Asia-Pacific
region will be burdened by historical
animosities, legacies of mistrust, and the
perceived primacy of national sovereignty.
8. Energy can serve as a means of furthering
USPACOM Theater Security Cooperation
objectives.
9. Operational plans require protection, access
and movement of energy-related products.
24
24
24
Australia
25
Australia Energy Trends
26
SPIDERS -­‐ Smart Power Infrastructure Demonstra+on for Energy Reliability and Security U
C
E
S
Y
G
ER
S
N
I
RE
S
N
O
I
T
A
L
TAL
TRANSITION
Phase 3
•  Template for DoDwide implementation
CAMP SMITH
•  CONOPS
ENERGY ISLAND •  TTPs
Phase 2
•  Entire Installation
•  Training Plans
•  Transition to
Smart Microgrid
FT CARSON
Commercial Sector
•  Islanded Installation
MICROGRID
Phase 1
•  High Penetration of
•  Transition Cyber•  Large Scale
Renewables
Security to Federal
PEARL-HICKAM
Renewables (35-50%) •  Demand-Side
Sector and Utilities
CIRCUIT LEVEL DEMO •  Vehicle-to-Grid
•  Joint Base
Management
•  Smart Microgrid
Architecture for
•  Redundant Backup
•  Renewables (8-9%)
•
Critical
Assets
Power
Secure Industrial
•  Two Diesel Generators
•
Cyber
Security
Test
•  Ancillary Services
Control Systems
•  Energy Management
(Lab
&
Live
on
•  Makani Pahili Hurricane (J-BASICS)
•  SCADA Cyber Test at DOE
Microgrid)
Exercise
National Laboratories
CYBER SECURITY BEST PRACTICES
N
E
O
T
Y
A
W
TAIR
S
RIGOROUS ASSESSMENT WITH RED TEAMING IN EACH PHASE
27
Camp Energy Efficiency Improvements Tested
TROPEC-ASSESSED SOLUTIONS HAVE SHOWN WAYS TO IMPROVE CAMP ENERGY CONSUMPTION.
ECUs: Variablecapacity, constant
speed
Lighting:
LED
Space
conditioning:
Duct Tee - 2
tents/ECU
Controls:
Occupancy
controls
Electronics:
High-temp
servers
Electronics:
Efficient
server cooling
Assessments have
covered a large
range of end uses,
showing savings
potential across the
camp structure
Shelters:
Air Beam™
structure
Shade/radiant
barrier/insulation
‘Soldier
’ Power
Microgrids
Generators: More
efficient & flex fuel
Shelters:
Rigid-walled
Water:
Water generation
Water:
Water reuse
Lighting: High
efficiency area
lighting + solar
power
28
WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP
US DoD Alterna#ve Fuel Policy Must be: 1.  “Drop-­‐in” replacement fuel •  Use exis#ng transporta#on and distribu#on infrastructure •  No modifica#ons to weapons plaWorms 2.  Compe<<ve cost rela<ve to petroleum fuel 3.  No worse than conven<onal fuel lifecycle greenhouse gas emissions 4.  Compliant with exis<ng procurement and environmental, health, and safety statutes/regula<ons Preferred process is partnering: Leverage private sector demand US DoD Alterna#ve Fuel Roles: •
Cer#fica#on/Qualifica#on •
Field Demonstra#ons •
Ongoing Purchases A-­‐10 Warthog cer#fica#on flight on 50% biofuel blend Pearl Harbor,
Hawaii
[Photo: U.S. Air Force Senior Master Sgt. Joy Josephson] Eglin AFB, Mar 2010 29
WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP
DoD Alternative Fuel Policy
Must be:
•
Drop-in-replacement fuel
–
Use existing transportation and distribution infrastructure
–
No modifications to weapons platforms
•
Competitive cost relative to petroleum fuel
•
Environmentally compliant with Energy Independence and Security Act of 2007, Section 526:
Alternative fuels must be “no worse” than conventional fuel lifecycle greenhouse gas emissions
•
Compliant with existing procurement and environmental, health, and safety statutes/regulations
Preferred process is partnering: Leverage private sector demand
DoD Alternative Fuel Roles:
•
Certification/Qualification
• Coordination between Services
• Collaboration with DoE and Industry
•
Field Demonstrations
• Specific purpose
• Duration limited
• Subject to funding approval
•
Ongoing Purchases
• DLA Energy Supply Chain
• Competitive with petroleum
A-10 Warthog certification
flight on 50% biofuel blend
[Photo: U.S. Air Force
Senior Master Sgt. Joy Josephson]
Eglin AFB, Mar 2010
30
DoD-DOE-USDA Biofuels Partnership
•  Memorandum of Understanding (MOU)
–  March 2011: DON, DOE, and USDA entered into a MOU to “assist the
development and support of a sustainable commercial biofuels
industry.”
–  As part of this MOU, each agency agreed to contribute funding of ~
$170 million (for a total of ~$510 million), and apply their core
competencies, towards the biofuels initiative.
•  Two-pronged Strategy
–  Supply Side: Support production capacity via Defense Production
Act (DPA) Title III biofuels program (DoD and DOE funds).
–  Demand Side: Support purchase of biofuels by Navy via “Farm-toFleet” program (USDA funds for premiums, if needed).
Unclassified
31
32
Coopera+on in 2016 and Beyond 33
“Whole of Government” Approach to Drop-In Biofuels
Supply
Enterprise
Planning
and Project
Management
Presidential/Congressional/Administration Departments energy policy goals and mandates
Assistant Secretary of Defense for Operational Energy (ASD (OE))
PACOM Transition Strategy, Interagency Coordination, Requirements Development, Policy Recommendations, Lessons Learned for other regional strategies
State of Hawaii energy, water, land, economic, community and stakeholder resourcing, planning, and regulation
USDA Biophysical-Economic Models for Dependable Feedstock Supplies
Validation
USDA Agriculture and Forestry Production Practice and Multifunctional Sustainable System
Development
USDA Co-product
USDA Co-product processing technology development
development
Sustainability/Carbon/Technoeconomic Validation (EPA for RFS2, DoD, USDA, DOE, DLA-Energy)
Hawaii Dept of Agriculture industry stakeholder consultation
Resources
for Industry
Acquisition
ASTM Certification
USDA NRCS Erosion Control Cost
International co-development and certification
Defense Production Act Title III Biofuels Program
USDA Germplasm Resource Collections and USDA 9007 Renewable Energy for America (REAP) grants and
Renewable Fuels
Feedstock Crop Variety Development
loan guarantees
Standard 2 (RFS2)
DOE Biorefinery grants (and loan
USDA FSA 9011 Crop Assistance Program
Values
guarantees)
USDA National Institute of Food & Agriculture AFRI Bioenergy Grants Program
DOE Fossil Energy/Carbon Sequestration contracts
DARPA Phase II Algae and Cellulosic Research Contracts
Regulation
Air Force Fuel
certification
Naval Air & Sea fuel
certification
Army Air & Vehicle
Certification
NATO certification
State Industrial Land
Hawaiian Electric Company (HECO)
Offtake contracts
Airlines for America (A4A) Distribution
and Offtake Contracts
Federal Aviation Administration
DLA-Energy Distribution and Offtake Contracts
USDA FSA 9005 Crop Subsidies and
DOE Cellulosic Biorefinery Grants and Loan guarantees
DOE OBP Advanced Biofuels Consortia
State of Hawaii Dept of Agriculture
State Dept of Health
Federal Aviation Administration (FAA)
State Board of Water Supply
State of Hawaii Dept of Land and Natural
Dept of
Resources
Transportation
Environmental Protection Agency (EPA)
EPA
DoD/Services Energy policy goals and mandates
Service Control
COCOMs, Services
Point Requirements
(A4/N4, A7/N7)
Joint Petroleum
Office Requirements
Validation
DLA-Energy Execution
Commercial Airlines
HECO
34
Defining Biofuels of US DoD Interest “Biofuel” is a broad term for: 1st Genera<on 2nd Genera<on 3rd Genera<on Ethanol & Biodiesel Cellulosic Ethanol “Drop-­‐In” Hydrocarbons >10% Oxygen >10% Oxygen <0.1% Oxygen Non-­‐tac#cal use only Non-­‐tac#cal use only Tac<cal use approved Drop-­‐In Biofuels: •  Hydrocarbons substan#ally similar to diesel or jet fuels. ü  Chemically indis#nguishable from petroleum derived fuels ü  Meet American Society for Tes#ng and Materials (ASTM) D7566, F-­‐34/JP-­‐8, F-­‐44/JP-­‐5, F-­‐76 specifica#ons ü  Require no changes to exis#ng infrastructure •  Some low temperature performance improvement over petroleum DoD Acquisi<on Preference: •  Preference for non-­‐food feedstocks 35
U.S. Renewable Fuel Standard (RFS2) Mandated Biofuel
Volumes
Min GHG RIN Reduc#on Class 50% A/5
50% B/4
60% C/3
20% R/6
RFS1 mandate Min GHG = Minimum greenhouse gas emissions
RIN = EPA-assigned 38-character Renewable Identification Number (RIN) per gallon. Cash value determined by private market.
36
Two-Part Strategy to Reach Competitive Price
$ per Gallon Desired Cost Path 1) Buy Down the Capital Cost Technical: Scale, produc#vity, coproducts Business: Grants, loans, tax credits, private investment etc. provided by DOE, USDA, DoD DPA Title III, state & local interests, and others Petroleum Reference Price Time (years)
2)  DoD purchase price for bulk fuels includes only the value of the bulk fuel Other stakeholders pay for: Long-­‐term Stable-­‐price premium + Renewable/GHG/other value 37
37
UNCLASSIFIED // FOR OFFICIAL USE ONLY // PROPRIETARY INFORMATION
Progress To Date Along Cost Reduction Path
Actual DLA-Energy purchases to date
$160.00
HEFA Desired Cost Trend 2008 - 2018
$140.00
$149.00
Target Costs ($/gal): $3 algal HEFA and waste ATJ by 2016 (DARPA) $2.05-­‐$2.15 cellulosic ethanol (DOE) $ PER GALLON
$120.00
Projec+ons ($/gal): $6.30 algal oil by 2018 (DOE) $100.00
$2.32/gal 2017 Pyrolysis Oil (DOE) $80.00
$60.00
$66.60
$66.80
$64.00
$40.00
$38.60
$20.00
$34.45
$34.90
$32.40
$33.00
$26.75
$26.75
DPA Title III:
$3-5
$0.00
UNCLASSIFIED // FOR OFFICIAL USE ONLY // PROPRIETARY INFORMATION
38
Fuel Price Effects on Activity and Readiness
(Mcgee, Huff, Wahedi, Rajaram, Bailey, & Fraizier 2013, Institute for Defense Analyses
Problem Statement
•  Fuel Price volatility causes
the actual expenditure for
fuel to be above what is
budgeted
•  Unbudgeted fuel costs
totaled >$26B FY05-FY11
•  Hypothesis: Unmet fuel
demands may cause cuts
in readiness programs
Results
•  Weak evidence that Services reduced a few operations in
response to long term price increases
•  Only Army showed a significant response, though
findings were not robust due to additional variables
•  Readiness is a high priority. Funding was found from
elsewhere to meet requirements each year overruns occurred.
)
Assumptions & Methodology
•  The primary measurement of the effects of the
unbudgeted fuel costs is readiness
Readiness
The ability to project units qualified to
perform full spectrum operations
Key
Components
Air Force flying hours, Navy steaming days,
days training for home-stationed Army
troops
Measurement
Measured by resourcing or usage of pacing
items. Assumes units that train and operate
more, are more ready
Conclusion & Recommendations
•  Future budgetary environment will probably not allow
readiness to be protected by reprogramming funds to cover
unbudgeted fuel expenses
•  Leanness of programs across the board
•  New fiscal environment and sequestration since 2013
What-If Scenarios Modeled
•  Budgeting 30% more each year would have reduced the
unbudgeted requirement by $24B, down to $2.2B
•  This method leads to significant surpluses and
assumes that DoD gets to roll the surplus across fiscal
years
•  Allowing a rollover of only 5% of the budget to later fiscal
years still reduces unbudgeted requirement by over 80%, i.e.
by $21B of the $26B
REVIEWER: William Hodel, USPACOM J81 39
Biofuel Ability to Address Fuel Budget Volatility
(D.J. Lee, University of Hawaii, Hawaii Natural Energy Institute, 2012)
Problem Statement •  Desire for alterna#ve fuels to address budget over-­‐
runs caused by vola#le petroleum prices has been expressed by POTUS, SECDEC, SECNAV, Congress, etc •  Actual ability of biofuels to reduce DoD budget vola#lity has never been studied Hypothesis •  Even if biofuels cost 5% more than the petroleum fuel they displace, the DoD can benefit through reduced over-­‐runs of execu#on year fuel budgets •  Mechanism to reduce vola#lity is the low covariance of biofuel feedstocks WITHpetroleum indices METHOD & ASSUMPTIONS Results •  Simula#ons of monthly fuel budgets using actual vola#lity of past 10 years showed that blending biofuels reduced overruns in all cases •  As linle as 3% biofuel blend produced significant reduc#ons in budget over-­‐runs •  Lowest price vola#lity occurs between 25%-­‐45% biofuel blend in wood waste Conclusion & Recommenda<ons: •  Biofuels are an op#on to reduce fuel expenditure vola#lity and risk •  If their price is indexed to their underlying feedstock commodity prices, rather than to petroleum prices •  Marginal cost of lowering price vola#lity by increasing biofuel usage is rela#vely steady up to a 20% biofuel blend in wood waste example REVIEWER: Margaret Johns, USPACOM J81 -­‐  Biofuels assumed to cost more than petroleum fuels -­‐  Monte Carlo methods were used to run trial simula#ons for each scenario. -­‐  Total fuel expenditure for DoD in Hawaii was modeled based upon FY08 volume consumed mul#plied by es#mated fuel costs -­‐  Fuel costs per gallon were es#mated based upon 10-­‐
year actual price vola#lity of comparable commodi#es: jet fuel, corn starch, wood chips, sugar, soybean oil etc. -­‐  Biofuel blend rates into petroleum fuel simulated at propor#ons ranging from 0% to 50% of total fuel. 40
Commercial Renewable Fuel Use and Demonstration
•  ASTM D7566 specification for commercial renewable jet fuel established in 2010
meets ASTM D1655 for jet fuel. It includes:
–  Hydrotreated Esters and Fatty Acids (HEFA, aka Hydrotreated Renewable
Jet (HRJ)) complete July 2012
–  Alcohol-to-Jet and Direct Sugars-to-Hydrocarbons (in progress)
–  Hydrotreated Pyrolysis Oil (proposed)
–  Fuels produced and certified to this specification will be marketed as
standard Jet A or Jet A1;
•  Renewable commercial jet fuel will be sold or retailed as
indistinguishable from conventional petroleum fuel
Significance: Any commercial aircraft that uses Jet A or Jet A1 fuel is now certified
to use up to 50% HEFA blended fuel and be marketed as ASTM D1655
41
Certification Complete
42
Biofuels Test & Qualification
Ship Progress
RIMPAC 2012
7m RHIB
50/50 Algal
Biofuel Test
RCB-X 501K
YP
Boat
Green Strike
National
CVN EDG Defense
Group
LCAC MAERSK (JP-5)
Test Ship Demonstration
FY2012
FY2010 FY2011
F/A-18
Flight Test
Completed
MH-60S
Aviation Progress
EA-6B
V-22
AV-8B
MQ-8B
FY2016
Great
Green
Fleet
43434
Great Green Fleet Biofuel Needs
~ 8,000,000 total
(JP-5 and F-76)
~ 80,000
F-76
JP-5
Biofuel Delivery
Schedule & Requirements
~ 8,000
~7,000
600
500
Bbls
400
300
200
100
0.1
1.2
0
9
10
11
2009
12
1
2
3
4
5
6
7
JP-5
Test and Certification
F-76
Test and Certification
Assistant Secretary of the Navy
8
2010
9
10
11
12
2011
2012
2016
2020
1st
Green
Fleet
Demo
2nd
Green
Fleet
Demo
50%
Alt
Fuel
(Energy, Installations & Environment)
44
Green Initiative for Fuels Transition Pacific (GIFTPAC)
founded Dec 2009
Pacific Region
Stop
t
x
e
N
miles
0
0
26
StrategicImperatives:
Imperatives
Strategic
National: Dependence of U.S. and military
transportation upon petroleum; opportunity to
address exposure to price volatility. Area for U.S.
comparative advantage in technological
innovation.
Regional: Opportunity to increase slate of
options for U.S. mobility fuel. Some allies and
key nations lack domestic petroleum reserves–
opportunity to increase local options and avert
resource conflict. Potential solution for remote
and petroleum-dependent installations.
GIFTPAC Objectives
Objectives
GIFTPAC
1) Displace 25% of DoD fuel used in Hawaii by
2018, equivalent to 32 million gallons per year.
The fuel must be domestically produced, nonfossil, meet military specifications, be costcompetitive, and reduce price volatility.
2) Enterprise model inclusive of the local energy
market that incorporates the agricultural, energy,
environmental, government, industrial, and
commercial sustainability objectives.
3) End state with sustainable ongoing competition
among multiple commercial entities at many
levels.
Membership
Co-Sponsors: PACOM J8 and Navy
DASN(E)
Interagency & Private Sector
members: USDA RDP, USDOE
OBP, EPA Office of Airlines for
America (A4A), Hawaiian Electric
Co., Commercial Alternative
Aviation Fuel Initiative (CAAFI)
DoD Members: ASD(OE), DLAEnergy, DARPA, Defense
Production Act Title III, AFCO,
NAVAIR, IMCOM PAC, TARDEC.45
As of Mar 2014
Hawaii Feedstock Readiness Status
PRELIMINARY EVALUATION
Feedstock Readiness Level (FSRL) Basic Principles / Concept Formula@on
1 PRE-­‐COMMERCIAL ASSESSMENT
Proof of Concept / Preliminary Technical Evalua@on
Produc@on Systems Valida@on / Full-­‐Scale Produc@on Ini@a@on
2 EXPERIMENTAL TESTING
3 Napiergrass 4 7 6 Jatropha FS Availability / Commercializa@on / Produc@on Capacity Established
5 COMMERCIAL DEPLOYMENT
Sugarcane Papaya Culls Napiergrass
Hybrids Papaya Culls Microalgae Jatropha Microalgae Sugarcane Coffee Cherries Eucalyptus FSRL Entity 9 Eucalyptus Coffee Berry Microalgae Feedstock 8 Location Contract Date 3 University of Hawaii Maui 3 3 4 5 7 8 8 BioTork Cellana Pacific Biodiesel Global Algae Innovations Aina Koa Pono Pacific Biodiesel Hawaii BioEnergy Hawaii Hawaii Hawaii Kauai Hawaii Hawaii Kauai Dec 2011 Dec 2011 46
Alternative Fuels Technology Program
2007-2012: Additional Feedstocks
47
Alternative Fuel Awards
Contract
Number Company Product FT Kerosene FT Kerosene FT Kerosene Award /
Option
Date Quantity 1 07-D-0486 Shell 6-Jun-07 315,000 2 08-D-0496 SASOL 26-Jun-08 60,000 3 08-D-0497 SASOL 3-Jul-08 335,000 4 09-D-0519 Sustainable Oils HRJ5 31-Aug-09 40,000 5 09-D-0518 Solazyme HRJ5 1-Sep-09 6 09-D-0520 Sustainable Oils HRJ8 15-Sep-09 100,000 7 09-D-0517 UOP HRJ8 15-Sep-09 100,000 8 09-D-0523 PM Group Int'l FT F76 30-Sep-09 20,000 9 10-D-0489 Sustainable Oils HRJ8 26-Jul-10 34,950 Option Sustainable Oils HRJ5 29-Jun-10 Option Sustainable Oils HRJ8 Option UOP 10 11-D-0526 Cost per
Gallon Total Feedstoc
Service k Delivery
Location FY of
Execution Funding $3.41 $1,074,150 Nat Gas AF 2007 AF RDTE - FY 2007 $3.75 $225,000 Coal AF 2008 AF RDTE - FY 2008 $3.90 $1,306,500 Coal AF 2008 AF RDTE - FY 2008 Pax River/
Evandale, OH
(GE) 2009 Navy & DLA ARRA RDT&E FY 2009 Pax River 2009 DLA ARRA RDT&E - FY
2009 $66.80 $6,680,000 Camelina AF WPAFB, Arnold,
Edwards 2009 AF RDTE - FY 2009 $64.00 $6,400,000 Tallow AF WPAFB, Arnold,
Edwards 2009 AF RDTE - FY 2009 ONR - Michigan 2009 Navy RDT&E - FY 2009 $38.60 $1,349,070 Camelina Army SWRI 2010 150,000 $34.45 $5,167,500 Camelina Navy Pax River 2010 31-Aug-10 100,000 $34.90 $3,490,000 Camelina AF WPAFB, Arnold,
Edwards 2010 AF RDTE - FY 2010 HRJ8 31-Aug-10 100,000 $32.40 $3,240,000 Tallow AF WPAFB, Arnold,
Edwards 2010 AF RDTE - FY 2010 Gevo ATJ8 23-Sep-11 7,000 $59.00 $413,000 Alcohols AF WPAFB 2011 AF RDTE - FY 2011 Option Gevo ATJ8 28-Sep-11 4,000 $59.00 $236,000 Alcohols AF WPAFB 2011 AF RDTE - FY 2011 11 11-D-0530 UOP HRJ8 30-Sep-11 4,500 $33.00 $148,500 Camelina Army SWRI 2011 Army RDT&E - FY 2011 12 12-D-0549 Dynamic HRJ5 30-Nov-11 100,000 $26.75 $2,675,000 UCO/Algal Navy Puget Sound 2012 Navy Ops - FY 2012 HRD76 30-Nov-11 350,000 $26.75 $9,362,500 UCO/Algal Navy Puget Sound 2012 Navy Ops - FY 2012 UOP HRJ8 2-May-12 4,500 $29.90 SWRI 2012 Army RDT&E - FY 2012 13 12-D-0559 $66.60 $2,664,000 Camelina Navy 1,500 $149.00 $7.00 $223,500 Algal Oil Navy $140,000 Nat Gas Navy $134,550 UCO/ICO Army DLA ARRA RDT&E - FY
2010 Navy RDT&E; DLA ARRA
RDT&E - FY 2010 48
Alternative Fuel Awards
Contract
Number Company Award /
Option
Date Product Quantity Cost per
Gallon Total Feedstoc
Service k Delivery
Location FY of
Execution Funding Pax River 2012 Navy RDT&E - FY 2012 Pax River 2013 Navy RDT&E - FY 2013 Option Amyris DSH76 TBD 25,000 $25.73 Ferm.
Navy Sugar Ferm.
$643,250 Navy Sugar Option Amyris DSH76 Plan is not
to exercise
Option 25,000 $25.73 $643,250 Ferm.
Navy Sugar Pax River Plan is not
to exercise
Option Plan is not to exercise
Option 15 12-D-0562 Amyris DSH76 10-Oct-13 3,000 $25.73 $77,190 Ferm.
Navy Sugar Pax River 2012 Navy RDT&E – FY2013 16 12-D-0561 Gevo ATJ8 27-Sep-12 30,000 $59.00 $1,770,000 Alcohols AF WPAFB 2012 AF RDTE - FY 2012 Option Gevo ATJ8 27-Sep-12 15,000 $59.00 $885,000 Alcohols AF WPAFB 2012 AF RDTE - FY 2012 17 13-D-0466 Gevo ATJ8 22-Mar-13 3,650 $59.00 $215,350 Alcohols Army WPAFB/SWRI 2013 Army RDT&E - FY 2013 Option Gevo ATJ8 12,500 $59.00 $737,500 Alcohols Army WPAFB/SWRI 2013 Army RDT&E - FY 2013 18 13-D-0462 Gevo ATJ5 23-May-13 850 $59.00 $50,150 Alcohols Navy Pax River 2013 Navy RDT&E – FY 2013 19 13-D-0488 Kior HDCD76 26-Sep-13 6500 $8.85 $57,525 Cellulose Navy Pax River 2014
Option Kior HDCD76 5000 $8.85 $44,250 Cellulose Navy Pax River 2014
20 13-D-0489 Gevo ATJ5 20,000 $59.00 $1,180,000 Alcohols Navy Pax River 2014
Option Gevo ATJ5 10,000 $59.00 $590,000 Alcohols Navy Pax River Option Gevo ATJ5 10,000 $59.00 $590,000 Alcohols Navy Pax River Option Gevo ATJ5 50,000 $59.00 $2,950,000 Alcohols Navy Pax River 2,057,950 $55,748,685 1,085,450 $41,534,620 14 12-D-0560 TOTAL
S HR/HEFA Amyris DSH76 27-Sep-12 TBD 30-Sep-13 15,000 $25.73 $385,950 Navy RDT&E – FY 2013
$38.26 FT 730,000 $2,745,650 $3.76 ATJ 93,000 $5,487,000 $59.00 DSH 43,000 $1,106,390 $25.73 $57,525 $8.85 6,500 Navy RDT&E – FY 2013
HDCD Navy RDT&E – FY 2013
49