The effort aims to enhance the operation of on-site, sustainable bio-refineries producing "renewable petroleum diesel equivalent liquid fuels, bio-based products and energy using renewable resources" at U.S. Department of Defense facilities.
The project would also benefit the commercial bio-fuel market. Biodico said.
As part of the agreement, Biodico will build a sustainable bio-refinery at U.S. Naval Base Ventura County that will produce biofuels and bioenergy at prices competitive with unsubsidized conventional fuel and power. Construction of the plant will be partially funded by the California Energy Commission.
"The agreement signed today builds upon our original agreement with the Navy first signed in May 2002," said JJ Rothgery, Biodico's chairman of the board of directors.
"Our objective is to privately fund sustainable bio-refineries at Department of Defense facilities around the world at no cost to the U.S. taxpayer and to eliminate our dependence on foreign oil."
Biodico, a privately owned company, builds, owns and operates sustainable bio-refineries and also conducts research, development and feasibility studies on the use of biofuels.