Dynamic Fuels, LLC, a joint venture between Tyson Foods and Syntroleum Corporation has been  awarded a contract to supply the U.S. Navy with 450,000 gallons of renewable fuel–the single largest purchase of biofuel in government history. Solazyme, Inc., a renewable oil and bioproducts company will help Dynamic Fuels fulfill the contract.

The Defense Department will purchase 100,000 gallons of jet fuel and 350,000 gallons of marine distillate fuel.  The fuel will be manufactured in Dynamic Fuel’s Geismar, Louisiana renewable fuels plant using U.S. sourced non-food waste (used cooking oil) as well as Solazyme’s tailored algal oil as feedstocks.   The fuel will be used in the U.S. Navy’s demonstration of a “Green Strike Group,” composed of vessels and ships powered by biofuel.  The demonstration will take place  in the summer of 2012 during the Rim of the Pacific Exercise, the world’s largest international maritime exercise.

Dynamic Fuels previously provided the U.S. military with fuel for testing.  “This award clearly demonstrates that we’re building momentum for the continued commercialization of advanced renewable fuels production here in the U.S.” said Andy Rojeski, a management committee member of Dynamic Fuels.  “We believe the federal government’s commitment to procure more energy from renewable sources will help make our high performance, environmentally friendly fuel more cost competitive, potentially creating more jobs in the biofuels industry.”

The Navy contract follows on the heels of both companies’ involvement in historic commercial airline flights using biofuels.  This includes Dynamic Fuels’ renewable jet fuel work KLM Royal Dutch Airlines, Finnaire, Thomson Airways, and Alaska Airlines and Solazyme’s recent flight partnership with United Airlines.