The U.S. military, which is the country’s largest single consumer, is engaged in an aggressive plan of alternative fuels development and testing, the Wall Street Journal reported Wednesday.
Synthetic fuels produced from coal or natural gas are expensive now, but could cost far less than the current price of oil if mass-produced, the paper said in a front-page story.
The Pentagon is hoping its push for alternative energy sources will feed civilian applications, the paper said. The Air Force is working with aircraft manufacturers such as Boeing Corp. and United Technologies Corp. on synthetic fuels, it reported.
The military consumes 340,000 barrels of oil a day, or 1.5% of all of oil used in the country. The Defense Department’s energy bill was $13.6 billion in 2006, up 25% from the year before, and the Air Force’s jet fuel bill has tripled in the past four years, the Journal said.
In late 2006, Baard Energy of Vancouver said it would build the first U.S. commercial synthetic-fuel refinery, scheduled to be completed in 2012, the paper reported. The company’s chief executive officer, John Baardson, said he decided to build the $6 billion plant because of the military’s interest, the Journal said.
A recent White House budget request for the wars in Iraq and Afghanistan tacked on a $2 billion fuel surcharge because of soaring prices, the paper said.
Oil prices closed at a record over $129 a barrel Tuesday and continued to push into uncharted territory Wednesday, topping $132, the Associated Press reported.
