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Largest Energy Consumer Looks to Invest in Renewable Energy

Utility and energy companies looking for the next big contract for their renewable energy solutions may be overlooking one of the largest potential clients in the world: the United States Department of Defense. With an annual energy spend of more than $20 billion, the U.S. military is one of the largest power customers around – and the single largest consumer of liquid fuels on the planet.

Many companies have signed lucrative new contracts with the various branches in the past year:

  • Lockheed Martin is developing an ocean thermal conversion technology that uses temperature differences between warm surface waters and deep cold water to generate power.
  • Boeing is developing an energy efficient solar-electric drone that can stay aloft for several months for reconnaissance and scientific experiments.
  • Johnson Controls won a $34 million contract from the Army for solar, wind, and energy management control systems to improve energy efficiency.
  • Siemens earned a $16.8 million Army contract to install a solar power system at the White Sands Missile Range.
  • SunPowerhas broken ground on a 13.8 megawatt solar photovoltaic power system at the Naval Air Weapons Station in China Lake, California.
  • Tiny Arista Power was awarded a contract to continue development of a mobile “Renewable Power Station” that utilizes wind turbines, solar panels, and an on-board battery storage system to provide an “intelligent scalable renewable energy micro-grid” for the U.S. Army.

All branches of the military are looking strongly into biofuels. They can be produced domestically and a reduced dependence on foreign energy sources has been a focus for years. Both the Air Force and the Navy have plans in place to use biofuels for 50% of their vehicles’ energy needs by the year 2020. The opportunity here is heavily weighted in production – more than 336 million gallons of biofuel will be needed by the Navy alone.

The U.S. Department of Defense has a strong commitment to investing in and advancing renewable energy technologies. Companies that can provide solutions to meet the unique niche needs of the military could quickly find themselves on a steep growth curve.

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