Navy Buys Biofuel for $16/Gallon -- ObamaNomics

Updates

May 14, 2016: Solazyme update.  In 2016, Solazyme "ditches biofuels" and according to Fortune:

Solazyme, now renamed as TerraVia, says it will no longer focus on its fuels and its industrial businesses, and instead will double down on selling its algae oil to the food and personal care industries, for use in products like cooking oil, protein powders and face lotion.

Along with the new focus, the company has announced a $200 million supply deal to sell algae oil to Unilever for personal care products, and new financing of $28 million from a handful of food-focused investors, like founder and former CEO of Popchips Keith Belling.

August 12, 2015: back in the news; sold biofuel to the US Navy for $149/gallon; turned out to be a money-laundering scam; US stimulus money (to save the planet) given to Solazyme; Solazyme then gives money to Democrats and to the Democratic party; at least that's what is being said
 

Original Post

Hot Air Green Room link here.

The farmers will be happy.

Data points:

• Conventional jet fuel: < $4/gallon
• Cozy relationship between Dept of Agriculture and US Navy --> biofuel for $16/gallon
• Some of the biofuel is being purchased from Solazyme (California-based)
• Strategic advisor at Solazyme: TJ Glauthier, a member of Obama's presidential transition team; worked on the energy-sector portion of the 2009 stimulus bill....
• Solazyme's partner: Dynamic Fuels, Louisiana, joint venture, Tyson Foods and Tulsa-based Syntroleum
• Dynamics Fuels plant openeed in Louisiana in 2010; by far the largest biofuels plant in North America
• Dynamics Fuels, with a plant in Finland, produce 94% of the world's biofuels
• KLM is using some of that expensive biofuel (4x the cost of conventional jet fuel) but Dutch govt subsidizes

So, when I read that that the military can't handle budget cuts, I can now say, "what?" They can start by buying competitively priced conventional jet fuel. My hunch is US Navy would have been better off funding research for coal --> jet fuel and/or natural gas --> jet fuel.

I get lots of comments sent into me that farmers are inappropriately subsidized by the US government. I disagree but if you feel that way, let the president know how you feel about $16/gallon biofuel. Write him, not me.

Another link for this incredible story. From that link:

Solar panels, of course, have been shown to require a very energy intensive process to produce nearly negating any benefits from solar energies supposed renewability.

The algae blend biofuels that Solazyme produces has proven to be less efficient than originally anticipated as well. A study from the University of Virginia showed that algae biofuels require more petroleum based energy to produce than other biofuels and generate more greenhouse gases.

The actions of the Obama administration and connections to his crony TJ Glauthier only further confirm his willingness to reward his cronies with taxpayer dollars for junk science. Glauthier’s associated grants and funding, to the tune of more than half a billion dollars, show that the tentacles of Obama administration’s green cronyism reach beyond the Department of Energy.

And so it goes. The good news is that with this much fat in the system, plenty of opportunity to cut when "push comes to shove."