The US Departments of Agriculture, Navy and Energy have announced a combined $30m in federal funding, to be matched in an equal sum by private investors, towards innovations in biofuel technologies and increase production of biofuels in US.

Agriculture, Navy and Energy departments have started collaboration to support commercialization of drop-in biofuel substitutes for diesel and jet fuel as part of the US government’s initiative to reduce one-third of the oil imports by 2025.

Drop-in biofuels at competitive prices will meet the needs of U.S. armed forces, as well as the commercial aviation and shipping sectors and the funding announced will be met from the Defense Production Act (DPA).

US Secretary of the Navy Ray Mabus said that the DPA is a critical component of strengthening our national security, and energy is a national security issue.

Additionally, the Department of Energy has announced a total of $32m in new investments to drive technological advancements and reduction of costs for the industry.