WILD GREEN YONDER AIR FORCE????

 

US military launches alternative-fuel push

Dependence on oil seen as too risky; b-1 takes test flight.

 

Yochi J. Dreazen, Wall Street Journal

21 May 2008 08:41

 

WHITE SANDS MISSILE RANGE, N.M. -- With fuel prices soaring, the U.S.

military, the country's largest single consumer of oil, is turning into an

alternative-fuels pioneer.

 

In March, Air Force Capt. Rick Fournier flew a B-1 stealth bomber

code-named Dark 33 across this sprawling proving ground, to confirm for

the first time that a plane could break the sound barrier using synthetic

jet fuel. A similar formula -- a blend of half-synthetic and

half-conventional petroleum -- has been used in some South African

commercial airliners for years, but never in a jet going so fast.

 

"The hope is that the plane will be blind to the gas," Capt. Fournier said

as he gripped the handle controlling the plane's thrusters during the test

flight. "But you won't know unless you try."

 

With oil's multiyear ascent showing no signs of stopping -- crude futures

set another record Tuesday, closing at $129.07 a barrel in New York

trading -- energy security has emerged as a major concern for the

Pentagon.

 

The U.S. military consumes 340,000 barrels of oil a day, or 1.5% of all of

the oil used in the country. The Defense Department's overall energy bill

was $13.6 billion in 2006, the latest figure available -- almost 25%

higher than the year before. The Air Force's bill for jet fuel alone has

tripled in the past four years. When the White House submitted its latest

budget request for the wars in Iraq and Afghanistan, it tacked on a $2

billion surcharge for rising fuel costs.

 

Synthetic fuel, which can be made from coal or natural gas, is expensive

now, but could cost far less than the current price of oil if it's

mass-produced.

 

Just as important, the military is increasingly concerned that its

dependence on oil represents a strategic threat. U.S. forces in Iraq alone

consume 40,000 barrels of oil a day trucked in from neighboring countries,

and would be paralyzed without it. Energy-security advocates warn that

terrorist attacks on oil refineries or tankers could cripple military

operations around the world. "The endgame is to wean the dependence on

foreign oil," says Air Force Assistant Secretary William Anderson.

 

Some Pentagon officers have embraced planning around the "peak oil"

theory, which holds that the world's oil production is about to plateau

due to shrinking resources and limited investment in many of the most

oil-rich regions of the Middle East. Earlier this year, they brought

Houston investment banker Matthew Simmons to the Pentagon for a

presentation on peak oil; he warned that under the theory, "energy

security becomes an oxymoron." House Democrats have proposed creating a

new Defense Department position to manage the military's overall energy

needs.

 

Alternative fuels are part of a broader -- and not so long ago unlikely --

conversion by the military to "green" initiatives. Producing synthetic

fuel itself can cause more pollution than conventional fuel if the

emissions aren't captured. But Army engineers also are pushing contractors

to build armored vehicles with hybrid engines. The Air Force is

experimenting with making engine parts out of lighter metals such as

titanium to boost fuel efficiency.

 

In December, Nellis Air Force Base near Las Vegas opened one of the

largest solar arrays in the U.S., a 140-acre field of 72,000 motorized

panels that powers the base and sells energy to nearby communities. The

Pentagon is soliciting bids for three similar arrays on other bases. The

military even has begun looking into the possibility of building small

nuclear-power plants on unused portions of its more remote bases, though

it has no firm plans yet.

 

The Pentagon is hoping its push for alternative energy will feed civilian

applications as well. For synthetic fuel, the Air Force is working with

aircraft manufacturers such as Boeing Corp. and the Pratt & Whitney engine

unit of United Technologies Corp. North American synthetic-fuel processors

including Rentech Inc., Baard Energy and Syntroleum Corp. all operate or

hope to build synthetic-fuel refineries to feed the military's growing

thirst.

 

"Our goal is to drive the development of a market here in the U.S.," says

Mr. Anderson.

 

Military use of synthetic fuel faces significant obstacles. The energy

bill signed into law by President Bush last year included a clause

preventing the government from buying the fuel if it emits more pollution

than petroleum. Manufacturers have promised to meet that target by

recapturing carbon dioxide and other greenhouse gasses produced in

refining. Without those efforts, synthetic fuel can emit up to twice as

much pollution in refining as conventional petroleum.

 

Prices' Impact

 

Synthetic-fuel prices also need to fall: Formerly stratospheric, they're

still about 50% above the soaring prices for petroleum. That should happen

if companies can begin operating commercial-scale refineries, says David

Berg, a policy analyst who studied the nascent synthetic-fuel market for

the Energy Department in December. He estimated that commercial-scale

synthetic-fuel refineries would be able to sell artificial fuel for

approximately $55 a barrel, less than half the current cost of

conventional crude oil.

 

But many in the field say they're unwilling to invest the necessary

billions until they can sign long-term contracts with the government.

Right now, the Air Force legally can sign deals only for five years. It

has asked the White House's Office of Management and Budget to seek

congressional approval for the rule change, but the Bush administration

has yet to act on the request, Mr. Anderson says.

 

"These plants are not likely to get built without government help" such as

guaranteed long-term contracts, says Mr. Berg, who recently retired. "And

they may not get built even then."

 

The problems are particularly acute for the Air Force, which uses about

2.6 billion gallons of jet fuel a year, or 10% of the entire domestic

market in aviation fuel. The Air Force's fuel costs neared $6 billion last

year, up from $2 billion in 2003, even as its consumption fell by more

than 10% over the same period because of energy-savings measures,

including a campaign to shut off lights and lower thermostats at bases.

 

The Air Force wants to be able to purchase 400 million gallons of

synthetic jet fuel a year by 2016, an amount equal to 25% of its total

fuel needs for missions in the continental U.S. This year, it expects to

buy slightly more than 300,000 gallons.

 

The Air Force launched its artificial-fuel initiative in the spring of

2006. Testifying before the Senate that March, Air Force Secretary Michael

Wynne told lawmakers that "we realize our reliance on petroleum-based

fuels must be curtailed." The Air Force gave a small team at its

Wright-Patterson base near Dayton, Ohio, the mission of finding a

synthetic fuel capable of powering all of the service's fighters, bombers

and other planes.

 

Despite its high-tech connotations, synthetic fuel -- often dubbed

"synfuel" for short within the industry -- has been around for decades.

The basic technology for transforming coal or natural gas into synthetic

fuel was invented by a pair of German researchers, Franz Fischer and Hans

Tropsch, in the 1920s. The Nazis later used the Fischer-Tropsch process to

mass-produce synthetic diesel fuel. During the apartheid-era embargo

against South Africa, scientists there tweaked the technology so it could

also produce synthetic jet fuel.

 

The Fischer-Tropsch process transforms a synthetic gas derived from coal

or other material into liquid gas. The resulting synthetic fuel is

different from biofuel, commonly produced from corn, sugar or other

plants. Continental Airlines Inc. has announced plans for an experimental

flight using biofuel this spring, which would be the first by a U.S.

carrier; Virgin Atlantic also has done some testing.

 

The Wright-Patterson team oversaw experiments on a wide array of synthetic

fuels, but quickly settled on a 50-50 blend of conventional jet fuel --

known as JP-8 -- and artificial fuel made using the Fischer-Tropsch

process. That mixture is used in South Africa, where Johannesburg-based

Sasol Ltd. is one of the world's biggest synthetic-fuel producers. Air

Force officials decided it was the safest combination.

 

B-52 Bomber Test

 

In June 2006, the Air Force agreed to buy 100,000 gallons of artificial

fuel from U.S.-based Syntroleum to mix with petroleum for testing. The

next month, military engineers bolted an engine from a B-52 bomber to a

table at Tinker Air Force base in Oklahoma and ran it for 50 consecutive

hours to see how it would perform on the synthetic blend. Engineers

detected no differences from conventional fuel.

 

The Air Force began conducting test flights. In September 2006, a B-52

took off from Edwards Air Force Base in California with two of its eight

engines burning the synthetic-fuel blend, the first time a military

aircraft had flown on artificial fuel. The plane's performance was the

same as if it had flown on conventional fuel, and the Air Force decided to

push ahead.

 

As the Air Force's experimentation increased, so did the involvement of

the private sector. Military and civilian aircraft share many parts and

are often built by the same companies. The military's Boeing C-17 cargo

jet, for instance, uses the same Pratt & Whitney engine as a Boeing 757

passenger plane. Pentagon officials are sharing their research into

synthetic fuels with such firms to help civilian companies certify their

equipment on the synthetic-fuel blend.

 

At the military's direction, Pratt & Whitney, Rolls-Royce PLC, Honeywell

International Inc. and General Electric Co. have agreed to work together

to develop joint specifications for how their engines perform on

artificial fuels. Last November, engineers from Pratt & Whitney mounted

one of the company's C-17 engines in a high-tech pressure chamber at

Arnold Air Force Base in Tennessee and simulated a variety of altitudes

and weather conditions to gauge the engine's performance. The tests were

"enormously uneventful," says Alan Epstein, the company's vice president

of technology and environment -- an encouraging sign.

 

In late 2006, Baard Energy of Vancouver had said it would build the first

commercial-scale synthetic-fuel refinery in the U.S., to be completed in

2012. Chief Executive John Baardson says he decided to roll the dice on

the $6 billion plant because of the military's interest. "There isn't a

market for this right now, so it takes a little bit of faith to get these

plants going," he says. "Knowing the military was out there took one huge

risk factor out of the decision-making process."

 

But other companies haven't followed suit. Syntroleum shut down the plant

that produced the fuel used in the B-52 test flight; it had only been

designed to produce small samples for experiments. Rentech is building a

new refinery in Colorado, but its plant also is meant to only refine

minute samples of synthetic fuel.

 

"It's a chicken and egg thing: We'll build a larger plant if we can get

the money to finance it and find customers willing to buy what it

produces," says Rick Penning, Rentech's executive vice president of

commercial affairs.

 

The pure synthetic fuel Syntroleum sold the Air Force for the B-52 test

flight in 2006 cost almost $20 a gallon. Its price since has come down

sharply, but the synthetic product used in the B-1 supersonic test in

March still cost $4.62 a gallon. It was mixed with petroleum fuel costing

$3.04 a gallon, according to government officials.

 

Testing Its Planes

 

The Air Force plans to finish testing all of its planes on the fuel blend

by 2011. Last month, it was time to test artificial fuel on supersonic

flights. Air Force officials decided to start with a B-1 bomber, a

supersonic plane that has been in service since 1986.

 

The test flight was assigned to Capt. Fournier and a two-man crew from the

9th Bomber Squadron at Dyess Air Force Base, in Abilene, Texas. The unit's

Latin motto, "Mors ab Alto," translates into "Death From Above."

 

On a clear day in March, the three men took off for New Mexico with a

reporter aboard. When the B-1 crossed into the closed airspace above the

White Sands Missile Range, Capt. Fournier yanked back his throttle and

sent the plane climbing almost straight up, throwing the bomber's

occupants back into their seats. He then pitched into a steep dive. Pens

and other small objects hovered around the cabin, weightless, until the

plane leveled off again.

 

Capt. Fournier fired the plane's afterburners and sent the bomber roaring

over the range. A small dial in the cockpit showed that the bomber was

flying faster than Mach 1.

 

Back at Dyess, the crew packed into a small conference room to analyze the

flight with a crew of military and civilian officials, including a pair of

engineers from GE, which makes the bomber's engines. Capt. Fournier said

the plane handled normally at high speeds and on sharp turns. The only

difference he noticed was that the synthetic fuel had a different smell

than conventional jet fuel. "So it didn't give you the normal buzz?" one

of the engineers joked.

 

With the B-1 certified to fly on the synthetic mix, Maj. Donald Rhymer,

the deputy director of the Air Force's alternative-fuels certification

office, said the Air Force would soon test fighters such as its workhorse

F-16.

 

"Our biggest litmus test was Capt. Fournier coming out of the B-1 and

saying that it was an unremarkable flight," Maj. Rhymer said as the

meeting ended. "That's the subjective endorsement we're looking for with

all of the planes.