"More proof that gallons are on the way", that's the word from the Advanced Biofuels Association (ABFA) as the U.S. Navy announced today it has placed the world's largest advanced biofuel order of 425,000 gallons of renewable fuels from Dynamic Fuels, LLC, a joint venture between Tyson Foods, Inc. (NYSE: TSN) and Syntroleum Corporation (NASDAQ: SYNM); and Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company who will help Dynamic Fuels fuel the order.

"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," commented ABFA President Michael McAdams. "Today's announcement should effectively silence our fossil fuel detractors as we have yet more proof that advanced biofuels are real and real enough to help better prepare and strengthen America's armed forces."

The contract announced today 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 biofuel.

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 neighborhood gas stations and fill up with advanced or cellulosic replacement fuels.  We're already starting to see advanced biofuels 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 biofuel.  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 offtake agreement starting in 2014.

The fuel for the Navy will be manufactured at Dynamic Fuel's Geismar, Louisiana, renewable fuels plant using yellow grease (used cooking oil) as well as algal oil supplied by Solazyme.  The fuel will be delivered to the government by May 1, 2012.  The Dynamic Fuels plant, which has been in operation for more than a year, is designed to convert non-food feedstocks such as algal oil, animal fats, and greases into renewable fuels.

Source: Advanced Biofuels Association