I cannot fault the DOD for prudently looking for secure fuel sources. However, they fought a war against a German army that was powered in part by diesel made by converting coal to liquid fuels (CTL). This technology has been refined to the point that its break-even is less than $100/bbl equivalent. While fuels made from algae and alternatives are quaint, the difference in maturity of the process and the cost is night and day different from that based on proven CTL technologies.
Based on the other excursions this administration has made into “green energy”, this stinks of buying off the greens, and this just plain stinks when the waste is paid for by borrowing money from China.
Key findings of the new study are that diesel fuel produced from coal:
Is economically viable when crude oil prices reach $95/bbl or $98/bbl for the recycle and poly-generation scenarios, respectively. This equates to diesel prices in the range of $2.70 to $2.80 per gallon of petroleum diesel.
from:
Updated U.S. Study Evaluates Coal to Liquids Economics (Green Car Congress Update)
http://www.americanfuelscoalition.com/2012/05/15/netl/