No major oil outlets have fully embraced biofuels, although British Petroleum has just announced that it may begin commercial production of ethanol starting in 2010.

BP has partnered with Verenium to bring a commercial-scale cellulosic ethanol facility online next year to start bringing alternative fuels to a gas pump near you.

BP has big plans for biofuels and seems to be marching towards an alternative fuel future faster than many of its competitors. Verenium already has a demonstration plant in Louisiana capable of producing over a million gallons of cellulosic ethanol annually, and BP hopes to ramp production up. The Verenium process uses proprietary enzymes to break down grass feedstock and convert it to ethanol more efficiently.

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The U.S. military has been pushing for the development of alternative fuels for a while now, and nobody paid much attention until the Pentagon finally put a price tag on the oil habit. As reported by Roxana Tiron in thehill.com, last week Pentagon officials disclosed that getting conventional petroleum fuel to remote combat locations in Afghanistan costs a whopping $400 per gallon.

There couldn’t be a more clear illustration of why the “drill baby drill” mentality is a non-sequitur when it comes to energy security.  Regardless of whether petroleum fuels are domestic or imported, they need to be transported to their point of use.  That’s not much of a problem when you’ve got modern seaports, highways and fuel depots, but to paraphrase one infamous former Secretary of Defense, you have to fight the war you have, not the war that’s got the ideal infrastructure to support your fuel of choice.

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If this statement is being represented accurately, it would not only put Chu directly at odds with Obama administration policy, it would mean that he doesn’t really believe in how his department is distributing their $36.7 billion dollar slice of stimulus funds. The statement would also contradict Chu’s previous stances on biofuels development. Comment from DOE was not immediately available, but I’ve got a request in to confirm or deny the statement as accurate. I’ll update as soon as I hear word.

Update 8:00 PM Pacific Time 10/13/2009: DOE’s Director of Public Affairs, Dan Leistikow, responded to my request from earlier today in an email, saying “I can’t verify the quote the blogger is using from an undisclosed source at an undisclosed meeting, which is at best wildly out of context.” He also added, “Anyone who has spent five minutes listening to Secretary Chu also knows he is one of the country’s staunchest advocates for pursuing a broad portfolio of clean energy research, and has warned against investing all our resources in a single technology to the exclusion of all others.”

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Syntroleum Corporation and Tyson Foods have partnered in a 50/50 venture called Dynamic Fuels to produce a new high-grade renewable diesel fuel. Using a proprietary Bio-Synfining process and a feedstock of animal fats, greases, and vegetable oils supplied from Tyson, Dynamic Fuels will produce diesel fuel with the lowest greenhouse gas emission levels of any transportation fuel available today.

Last month Dynamic Fuel chose Emerson Process Management to provide the digital automation and process management systems to help operate a new $138 million renewable diesel facility in Geismar, Louisiana, the largest such plant in North America. Scheduled to begin operation in 2010, the plant will produce 75 million gallons per year of of the fuel.

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I’ll admit, never saw this one coming–using Mountain Dew as fuel. It surely makes the Mountain Dew Game Fuel much more appropriate!

Inventor Paul Patone has created the GEET (Global Environmental Energy Technology) Fuel Processor. A mod that allows you to run your car on about 80% water. Or possibly, just a nice cold Tab.

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