In a statement, US Navy Secretary Ray Mabus said the 450,000 gallons (1.7 million litters) represents the "largest single purchase of advanced drop-in biofuel in government history."
The contract involves supplying the Navy with 100,000 gallons of jet fuel (Hydro-treated Renewable JP- 5 or HRJ-5) and 350,000 gallons of marine distillate fuel (Hydro-Treated Renewable F-76 or HRD-76). The fuel will be used as part of the Navy's efforts to develop a "Green Strike Group" composed of vessels and ships powered by bio-fuel.
The bio-fuel also "comes from non-food sources and does not increase the carbon footprint," Mabus said.
The Defence Department will purchase bio-fuel made from a blend of non-food waste, including algae produced by Solazyme and used cooking oil from the Louisiana-based Dynamic Fuels, LLC, a joint venture of Tyson Foods and Syntroleum Corp.
The fuel will be used in the US Navy's demonstration of a "green strike group" in 2012 during the Rim of the Pacific Exercise, an international maritime exercise off the coast of Hawaii.
By 2016, the Navy aims to send a carrier strike group on a normal, multi-month deployment using 50 percent bio-fuels for both surface ships and aircraft.
Among those hailing the announcement was the Advanced Bio-fuels Association (ABFA).
"Get ready America, because the gallons are on the way as we're about to make history by leading the world in delivering renewable replacement fuels," said ABFA President Michael McAdams. "Today's announcement should effectively silence our fossil fuel detractors as we have yet more proof that advanced bio-fuels are real and real enough to help better prepare and strengthen America's armed forces."
McAdams added, "The moment demands leadership from Washington, it is not a time to shy away and remove the public policy instruments that can help drive our nation to the day that Americans pull up to their neighbourhood gas stations and fill up with advanced or cellulosic replacement fuels. We're already starting to see advanced bio-fuels delivering on its promise of creating new jobs, and providing economic and energy security for our nation and today's order will help boost that progress."
The Navy contract follows on the heels of both companies' involvement in historic commercial airline flights using bio-fuel.
This includes Dynamic Fuels renewable jet fuel work with KLM Royal Dutch Airlines, Finnair, Thomson Airways and Alaska Airlines, and Solazyme's recent partnership with United Airlines, which includes a letter of intent to provide 20 million gallon a year off-take agreement starting in 2014.
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