US military targets domestic clean fuels use

London (Platts)--2Jun2005

The Department of Defense has launched an effort to get US industry to tackle
alternative fuel projects to make ultra-clean, high-performance jet fuel and
diesel for the military.

Theodore Barna, assistant deputy undersecretary of defense, told a clean fuels
symposium in Anchorage last week DoD intends for its OSD Clean Fuels
Initiative to jump-start domestic production of clean fuels made from
non-petroleum sources. OSD stands for Office of the Secretary of Defense.

Barna said the department is neutral on the type of technology employed but
the military is already testing Fischer-Tropsch fuels made with natural gas
and would like to see F-T plants built in the US using coal. The agency also
would like to see a new effort at oil-shale development.

"Our goal is to be a catalyst for commercial industry to produce clean fuels
for the military from secure domestic sources," Barna told the Alaska Clean
Energy Symposium, a conference sponsored by the US Army's National Automotive
Center in Detroit and WestStart-CalStart, a California-based firm engaged in
advanced transportation technology research.

Oil import reliance 
"When we look at what our energy situation might be 15 years from now, we
think it is possible that the military might not be able to do its job," Barna
said. Not only is the US too reliant on oil imports, but the domestic refining
industry is too concentrated in large, coastal plants. Refineries are
vulnerable to terrorist attacks and supply disruptions, he added.

An alternative fuels production system based on coal and oil shale would be
diversified among a number of new plants spread around the country, he said.

Testing by the military shows alternative fuels such as diesel and jet fuel
made with Fischer-Tropsch technology show superior performance compared with
crude-based fuels. The clean fuels are ideal for fuel cells, which have little
tolerance for sulfur, as well as scramjet systems.

A $3.5-mil testing program with Fischer-Tropsch fuels produced by Syntroleum
has been underway since 2002, Barna said. The fuels have been shown to have
excellent cold-start capabilities and superior environmental qualities due to
the absence of sulfur and aromatics. Barna acknowleged problems with lubricity
in F-T fuels due to the lack of sulfur, and the absence of aromatics has
caused shrinkage of engine seals. Many of these problems might be solved by
blending the ultra-clean fuel with conventional fuels, he said.

Although the military is now exempt from clean air rules, the exemption will
not last forever, Barna said. Many military installations are in regions with
air quality problems and the Defense Department has an obligation to local
communities, he said.

DoD wants a supply of 12.5-mil gal of synthetic jet and diesel by 2007 to
begin a testing program in military aircraft and vehicles, Barna said.

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