Developing biofuels for the military will help prompt uptake of advanced fuels for commercial use and promote rural investment, the White House said in announcing a new spending plan today.

President Obama announced today that the US Department of Agriculture, the Department of Energy and the Navy will partner with the private sector in a joint plan to invest up to $510 million in biofuels that could power military and commercial transportation.

The plan aims to increase the production of advanced biofuels in efforts to help increase both energy and national security by decreasing dependence on foreign oil.

For an example of one company that claims to manufacture drop-in biofuels, see a profile of Wall Street favorite KiOR.

The plan, developed by Secretary of Agriculture Tom Vilsack, Secretary of Energy Steven Chu, and Secretary of the Navy Ray Mabyus, calls for the construction of drop-in biofuel production facilities and refineries. That infrastructure will help to increase the manufacturing of next-generation biofuels within the country while boosting energy independence, the administration said.

“Biofuels are an important part of reducing America’s dependence on foreign oil and creating jobs here at home,” said President Obama.
“But supporting biofuels cannot be the role of government alone. That’s why we’re partnering with the private sector to speed development of next-generation biofuels…”

The White House Biofuels Interagency Work Group and Rural Council are directing the initiative.

“By building a national biofuels industry, we are creating construction jobs, refinery jobs and economic opportunity in rural communities throughout the country,” said Agriculture Secretary Vilsack. “As importantly, every gallon of biofuel consumed near where it is produced cuts transportation costs and, for the military, improves energy security.”