Sep 21 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - Kevin Bonham Grand Forks Herald, N.D.

North Dakota is on the tarmac of the U.S. military's flight into the world of energy independence.

The state, along with Texas and the Appalachian Mountain region, have been identified as areas of the country that could be centers of alternative energy development, Air Force Chief of Staff Gen. T. Michael Moseley told the state's congressional delegation Wednesday.

"North Dakota has an abundant source of alternative energies that can fuel our Air Force," the delegation said in a joint statement.

The delegation urged the general to develop a jet fuel production facility in North Dakota and to use more of the state's powerful wind energy resource.

Conrad, Dorgan and Pomeroy also encouraged the Air Force to work with the Energy and Environmental Research Center in Grand Forks as they look for alternative fuels, they said.

"It's further confirmation that North Dakota could be a hub of America's energy future," Sen. Kent Conrad said in a telephone interview from Washington.

The U.S. military uses 97 percent of the petroleum consumed each year by the U.S. government. Half of that is jet fuel consumed by the Air Force.

Looking to maintain secure and reliable sources of energy, the Department of Defense has launched an Assured Fuels Initiative. This initiative involves purchasing renewable energy and developing ultra-clean, high-performance jet fuel from alternative sources such as coal.

In the meeting on Capitol Hill, Moseley said the Air Force has set a goal of acquiring 50 percent of its jet fuel from alternative sources by 2016.

With its huge coal resources, North Dakota is a prime place for the Air Force to explore as a site for alternative fuels plants, according to the delegation.

Currently, a B-52 from Minot Air Force Base is deployed at Edwards Air Force Base in California, testing synthetic jet fuel as part of the Defense Department's Assured Fuels Initiative. A 50-50 blend of synthetic and oil-based fuel was used in two of the eight engines on a military test flight Tuesday from Edwards Air Force Base in California.

The Air Force already is the nation's top purchaser of renewable energy, with 1 million megawatt hours purchased in fiscal year 2005, according to the delegation. North Dakota's military bases lead the nation in the use of renewable energy.

The Air Force burned 3.2 billion gallons of aviation fuel in 2005. That accounts for 52.5 percent of all fossil fuel used by the government, according to a Pentagon report. The Air Force bill for jet fuel in 2005 surpassed $4.7 billion.

"It's not just a budget item. They view it as a security issue," Pomeroy said. "We talked about global demand and the sensitivity of getting oil from this now very insecure part of the world."

A report earlier this year indicated that if the synthetic blend were proven effective, the Air Force likely would buy up to 100 million gallons of the new fuel in the next two years.

"The military is certainly playing a key role, because they have such an overriding interest and need," Sen. Byron Dorgan said. "And they have so many resources to help reduce the dependency that we have. They're very focused on this.

"The other thing is when the government becomes the original purchaser of new technology, or a new energy, it creates a supply source that pulls the rest of the country along."

The general and the delegation also discussed the planned unmanned aerial vehicle (UAV) and Global Hawk military missions that will be based at Grand Forks Air Force Base, a potential new tanker mission at Grand Forks and a new bomber mission that could go to Minot.

Pomeroy said the general referred to North Dakota as a "sweet spot" for energy development.

"It gave us an opportunity to tell him not only about the infrastructure, the fuel stocks and the pipeline capacity we have in the state, but to talk about the EERC, our intellectual resources and our own work in renewable fuels," Pomeroy said. "I think this is a match made in heaven for us."