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Mon, May 06, 2013

Government Continues To Buy Green Jet Fuel At $59 Per Gallon

Standard JP-8 Costs Taxpayers $3.73

Jet demonstration teams are grounded, some active duty squadrons have curtailed operations, and civilians face layoffs from their jobs ... but the Pentagon reportedly signed a contract recently to pay $59 per gallon for "green" renewable jet fuel.

The online site The Examiner reports that across-the-board spending cuts have not slowed the green fuels program. A company called Gevo recently was awarded a contract from the Defense Logistics Agency to supply 3,650 gallons of renewable jet fuel to the U.S. Army in the second quarter of 2013. In a financial report, Gevo said that the order "may be increased by 12,500 gallons. All shipments will be at a fixed price of $59 per gallon during the initial testing phase."

The Army contract is in addition to contracts the company has with the U.S. Air Force and U.S. Navy.

And what does the taxpayer pay for standard petroleum-based jet fuel? The Defense Logistics Agency says that runs about $3.73 per gallon ... a little less than the amount AAA says consumers are paying for premium gasoline this week.

FMI: www.dla.mil

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