New US bill seeks longer biofuels contracts
Extended purchasing contracts for advanced biofuels from the US Department of Defense (DOD) could help companies unlock more investment opportunities to build biorefineries, a biotechnology trade group said on Friday.
The Biotechnology Industry Organization (BIO) praised Sens. Patty Murray (D-Wash.) and Maria Cantwell (D-Wash.) for introducing the Domestic Fuel for Enhancing National Security Act of 2011, which would allow the DOD to increase long-term contracts with biofuel producers from five years to 15 years for the purchase of advanced biofuels.
“To achieve true energy independence, the United States needs to dramatically increase advanced biofuel production,” said Brent Erickson, executive vice president of BIO’s industrial & environmental section.
“But that requires capital investment in deploying new technologies,” he continued. “Expanding the Defense Department’s ability to engage in long-term contracts would provide advanced biofuel companies needed market stability as they commit capital to building new biorefineries,”
“The Defense Department recognizes that domestically produced advanced biofuels are vital to our energy security. For instance, they can reduce the military’s dependence on foreign oil and shield it from volatile energy supplies and prices.
“The common sense changes to Department of Defense procurement policies in this legislation can move the country another step closer to energy security,” Erickson said.
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