1. DEPARTMENT OF THE NAVY Next Steps for Military Marine & Aviation Biofuels Chris Tindal Director for Operational Energy Deputy Assistant Secretary of the Navy for Energy

2. HEFA and F-T SPK have been added to: – JP-5, JP-8, and F-76 DON follows ASTM As pathways are added, it will increase the sources of cost-competitive, operational quantities of alternative fuels Biofuels Added to MILSPECS

3. Plans for Pathway Adoption JP-5 Alcohol To Jet  Lab testing 95% Complete  Component/ Engine Testing In Process  Flight Tests Planned Summer 2014 Direct Sugar To Hydrocarbon  Lab testing 90% complete  Similarity analysis on-going to determine component/engine req’ts Hydroprocessed Depolymerized Cellulosic  Lab testing 70% complete  F414 combustor test planned 2014  Component/Engine testing planned 2015 Catalytic Hydrothermolysis  Lab testing 60% complete  Component/Engine testing planned 2015 F-76 Direct Sugar To Hydrocarbon  Laboratory testing 95% Complete  Component /Engine Testing in Process  Platform trials planned 2014/15 Hydroprocessed Depolymerized Cellulosic  Laboratory Testing 90% Complete  Component/Engine Testing in process  Platform trials planned 2015 Catalytic Hydrothermolysis  Lab testing 60% complete  Component/Engine testing planned 2015 3

4. JP-8 fuel will begin to be replaced by Jet A by FY15 – Additives will be required (CI/LI, FSII, and Static Dissipater) – Realization of some cost benefits – Ability (necessity) to follow commercial markets / ASTM JP-5 will continue to be the mandatory fuel for sea- going use (60°C flashpoint is non-negotiable) JET A for land-based use

5. Farm to Fleet Biofuels Initiative 10% blend target, 1 year contracts – 10% ≈ 43 + 37 MM gal (neat) for each solicitation (≈ 80 MM total) – JP-5 jet fuel and F-76 diesel fuel marine – HEFA and FT SPK CCC Eligibility – Feedstocks must be on USDA approved feedstock list to receive CCC funds GHG emissions – EISA 526 dictates same or better GHG emissions Price: Must be cost competitive Solicitations pending (summer 2014 – winter 2015) Deliveries scheduled to begin: – April 2015 with the Inland/East/Gulf Coast region – October 2015 for Rocky Mountain/ West Coast region – These two solicitations cover all 50 states

6. Puerto Rico Guantanamo Bay Bermuda Panama Canal Zone Inland/East/Gulf Coast: Total JP-5 and F-76 volume – 430 MM gal Rocky Mountain/West Coast Total JP-5 and F-76 volume – 370 MM gal Wake Island Kwajalein

7. Great Green Fleet 2016 Year-long event throughout CY 2016 Highlight deploying ships with 3+ energy conservation measures (ECMs) or alternative energy for propulsion, deploying aircraft with 2+ ECMs or alternative energy propulsion Ushers in the “New Normal” Maximize likeness to Great White Fleet, but no dedicated group or itinerary for 2016 Need international biofuel acquisitions

9. Fulfilling SECNAV’s 2020 Goals Increase Alternative Energy Use Department of the Navy (DON)-wide: By 2020, 50 percent of total DON energy consumption will come from alternative sources. This represents 336 million gallons of biofuels (neat) by 2020 when nuclear power is counted into total energy consumption 9

10. DON Annual Fuel Requirements Inland East Gulf Coast Rocky Mountain West Coast Atlantic Europe Med Western Pacific JP-5287214.633.5131.7666.8 JP-866.7187.9491.7305.2 Jet A/A-1840.348.3 F-76176156.450.1264646.5 Total537.7558.9132.6437.71666.9 10%53.855.913.343.7166.7 50%268.9279.566.3218.9833.4 All volumes in MM gal

11. T HANK Y OU F/A-18E, USS Nimitz

12. Some things don’t change…