The Obama administration has announced its successful purchase of “green” biofules for the U.S. Navy at $15 per gallon. This success story is interesting for the fact that the Navy’s regular fuel cost is just under $4 per gallon. Additionally, one of the companies involved in the sale employs a prominent member of Obama’s 2008 transition team, one T.J Glauthier.
The company in question, Solazyme of California, has also been a happy beneficiary $21.8 million of Obama’s “stimulus” spending.
Interestingly and raising specters of crony capitalism, the biofuel purchased at extreme cost by our government was approved via one of Obama’s infamous Executive Orders instead of going through the usual congressional process. Obama’s administration gave no indication as to why this decision was made by the White House instead of through the regular legislative process.
The Institute for Energy Research notes that the costs being born by the Navy is quite high.
The Navy pays $26 a gallon for the biofuel and after combining it with the oil product in a 50/50 blend obtains a fuel that costs $15 per gallon. That is almost 4 times the cost of JP-5 jet fuel, which runs $3.97 per gallon. An MIT study of alternative jet fuels, conducted in association with the Navy, found that even under optimal conditions, the price of bio jet fuel would still be twice as high as the cost of the traditional jet fuel.
Once again we see Obama picking and choosing what private sector businesses get government largess. We also see Obama’s commitment to greenism despite that it is extremely costly to the American taxpayer.