RADM Philip H. Cullom

Director of Fleet Readiness, OPNAV N43

24 March 2010

Navy Task

Force Energy

The U.S. Navy protects the lifelines of

the global energy economy

Almost 80% of the world’s

fuel travels by ocean

“How inappropriate to call this planet Earth

when it is quite clearly Ocean”

- Arthur C. Clarke

Global energy consumption is growing...

Today

... to unprecedented levels

2030

5

Global Energy Drivers

Energy poses geopolitical, economic, and environmental

challenges that call for aggressive technology and policy changes

Energy Related CO2 Emissions

Market Driven Volatility

…and Choke Points

Global Trade…

An energy & national

security problem

…and Choke Points

Global Trade…

An energy & national

security problem

Oil is a very

volatile

commodity

Increasing carbon

emissions resulting in

environmental

activism & regulation

Navy Petroleum Consumption

?

Security of Source?

Volatility of Price?

Increased Demand?

Energy Related CO2 Emissions

Market Driven Volatility

…and Choke Points

Global Trade…

An energy & national

security problem

…and Choke Points

Global Trade…

An energy & national

security problem

Oil is a very

volatile

commodity

Increasing carbon

emissions resulting in

environmental

activism & regulation

Navy Petroleum Consumption

?

Security of Source?

Volatility of Price?

Increased Demand?

Energy Related CO2 Emissions

Market Driven Volatility

…and Choke Points

Global Trade…

An energy & national

security problem

…and Choke Points

Global Trade…

An energy & national

security problem

Oil is a very

volatile

commodity

Increasing carbon

emissions resulting in

environmental

activism & regulation

Navy Petroleum Consumption

?

Security of Source?

Volatility of Price?

Increased Demand?

Energy Related CO2 Emissions

Market Driven Volatility

…and Choke Points

Global Trade…

An energy & national

security problem

…and Choke Points

Global Trade…

An energy & national

security problem

Oil is a very

volatile

commodity

Increasing carbon

emissions resulting in

environmental

activism & regulation

Navy Petroleum Consumption

?

Security of Source?

Volatility of Price?

Increased Demand?

6

Shore (6%)

Expeditionary (1%)

Aviation

(42%)

Maritime

(51%)

U.S. Government

(2% of U.S.)

Navy

(24% of DoD)

Department of Defense

(93% of USG)

Navy Petroleum Consumption in PerspectiveU.S. Petroleum Consumption

Total: 28.5 M bbls in FY08

Navy Energy Profile

Overall Energy

Consumption

En

erg

y C

on

su

mp

tio

n

Tactical

75%

25%

Shore

Overall Energy

Sources

En

erg

y C

on

su

mp

tio

n

Petroleum

Electricity

,

Natura

l Gas,

Other

Nuclear

Renewables

57%

26%

16%

1%

Overall Energy

Sources

En

erg

y C

on

su

mp

tio

n

Petroleum

Electricity

,

Natura

l Gas,

Other

Nuclear

Renewables

57%

26%

16%

1%

7

Navy Energy Successes

Guantanamo Bay Wind Farm, 3.8 MW

China Lake Geothermal Power Plant, 270 MW

Incentivized Energy Conservation Program (i-ENCON)

Training Simulators San Diego Solar PV

8

Navy Energy

Coordination Office

Maritime

Strategic ImpactsEnvironmentFuels

ShoreExpeditionaryAviation

Task Force Energy

Executive Steering

Committee

Navy Task Force Energy

The Chief of Naval Operations established Task Force Energy to:

• Raise visibility and awareness of energy as a strategic resource

• Optimize energy considerations in budgeting and acquisition

• Recommend Navy-wide energy conservation, environmental

stewardship, and alternative energy strategies

Functional

Working Groups

Supporting

Working Groups

DoD/Federal

Collaborators USCGUSAFUSMC USA DoEOSD USDA

9

By 2020, DON will produce at least 50

percent of shore-based energy

requirements from alternative sources

DON will demonstrate a Green Strike

Group in local operations by 2012 and

sail it by 2016

By 2015, DON will reduce petroleum

use in the commercial fleet by 50

percent

Evaluation of energy factors will be

mandatory when awarding contracts

for systems and buildings

Increase Alternatives Afloat

Increase Alternatives Ashore

Sail the “Great Green Fleet”

Reduce Non-Tactical Petroleum Use

Acquisition Excellence

By 2020, 50 percent of total DON

energy consumption will come from

alternative sources

SECNAV Energy Goals

The Navy Is Moving Forward On These Aggressive Targets

At the Naval Energy Forum, the Honorable Ray Mabus announced five Energy Goals:

10

Increase Alternatives Afloat

Increase Alternatives Ashore

Sail the “Great Green Fleet”

Reduce Non-Tactical Petroleum Use

Acquisition Excellence

SECNAV Goals and Energy Security

Assure Mobility (Goals 1,2,3,4)

Shift from volatile and vulnerable

petroleum to biofuels

Protect Critical Infrastructure (Goal 2)

Ensure grid security and backup power for

critical assets

Expand Tactical Reach (Goal 1,2)

Improve combat capability through

efficiencies

Lighten the Load (Goal 1,2)

Reduce fuel tether through technological

and operational modifications

Green Our Footprint (Goals 1 thru 5)

Reduce carbon emissions and promote

environmental stewardship

Strategic ImperativesSECNAV GoalsALIGNMENT

1

2

3

4

5

Navy Strategy Aligned to SECNAV Goals

11

Current Initiatives

Stern FlapsStern Flaps Advanced Hull CoatingsAdvanced Hull Coatings

Fleet Scheduler Planning ToolFleet Scheduler Planning Tool Hybrid Electric Drive Efficient HVAC Systems

LCAC Full Mission TrainersLCAC Full Mission Trainers

On-Board Vehicle Power Generation Efficient Environmental Control Units (ECUs)

Smart Meters & Auditing Energy Conservation

Renewable Energy

AviationMaritime

ShoreExpeditionary

12

Alternative Fuels Initiatives

“Green” F/A-18

“Green” DDG-51 “Green” Carrier

Strike Group

Biofuels Testing and Certification Process

MIL-

SPE

C

Camelina

Multiple Multiple

Options,Options,

Multiple Multiple

ChallengesChallenges

Soy

Jatropha

Waste

Algae

Sorghum

Switchgrass

Methane

Hydrate

Long-Range AmbitionMedium-Range Goals

13

• F/A 18 Engine Demo– Conducted engine test using

Camelina based JP-5 blended with JP-5

– Initial results indicate engine performed as expected with petroleum based JP-5

– First Navy test with biofuel on a jet engine

– Believed to be the first afterburner test conducted on biofuel

• Flight of the Green Hornet scheduled for Earth Day (22 Apr)

13 Oct 2009

14

100% Renewable Energy Platform

USS Constitution

15

Backups

16

Alternative A Alternative B

A “replacing oil as

transportation

fuel” world

An “alternative

energy” world

Alternative C Alternative D

An “energy

resource crisis”

world

A “fossil based

green” world

Disruptive to

current Business

Model

Reinforces

current Business

Model

Collaborative

Resource RivalryHyper-competitive

4 Energy Future Alternatives for 2030

Present Future

B

C

D

2007 2015

A

Nu

mb

er

of

Po

ss

ible

Fu

ture

Wo

rld

s

B

C

D

BEST CASE

FUTURE

ALTERNATIVE

FUTURE 1

ALTERNATIVE

FUTURE 2WORST

CASE

FUTURE

A B

CD

SWEET

SPOT

BEST CASE

FUTURE

ALTERNATIVE

FUTURE 1

ALTERNATIVE

FUTURE 2WORST

CASE

FUTURE

A B

CD

SWEET

SPOT

A B

CD

SWEET

SPOT“Made in China”

“Mad Max” “Tri-Polar”

“Americana”

17

Total Ownership Cost Challenges

Energy

13%

Manpower

27%

Typical Surface Combatant

Total Ownership Cost

Maintenance

15%

Acquisition

45%

18

Acquisition

45%

Since 1991

• The CPI has increased by 59%

• Private sector depot port rates have increased 49% Slightly less than CPI

• Military Manpower costs have increased by 114%Almost double CPI

• Energy Costs have increased by 292%Five times CPI!

Typical Surface Combatant

Total Ownership Cost

5X

CPI

Energy

13%

Manpower

27%

Maintenance

15%2X

CPI

.8X

CPI

Total Ownership Cost Challenges

19

• Reducing the requirement for

liquid fuel from projected 32M bbl

to 27M bbl

• Replacing 8M bbl of petroleum-

based fuel with liquid alternative

fuel

Reduce liquid fuel consumption through conservation and efficiency

Increase use of alternative fuels (with liquid fuel from renewable sources)

Navy gets to 50% alternatives

in 2020 by:

0

10

20

30

40

50

FY08 FY11 FY14 FY17 FY20

Projected Afloat Fuel Consumption

GGF Demo GGF Deployment

Millions of

Barrels of Oil

Equivalent

Petroleum

Nuclear

Liquid

Alternatives

50%

28%

50%

Liquid Fuel Reduction from Efficiencies

72%

MB

bls

of

oil

eq

uiv

ale

nt

• 2012 Demo – 40K Bbls blended

• HRJP-5 – 5K Bbls

• HRF-76 – 35K Bbls

• 2016 Sail – 120K Bbls blended

• HRJP-5 – 40K Bbls

• HRF-76 – 80K Bbls

Biofuel requirement:

50% Alternative Fuel Afloat: A Dual Approach

20

Biofuels• Navy leads DoD test and certification

harmonization

• Contracts for algae- & camelina-based fuel

• F/A-18 engine demo (Oct 09)

• Ship testing (Sep 10)

Hybrid Electric Drive• Enables efficient operation at low speeds

• DDG Prototype (2012) Production (2014)

Short-term Initiatives• Aviation i-ENCON

• Improved Hydrodynamics

• Aircraft Bring-Back Weight

• Afloat Energy Metering/Auditing

Mid- and Long-term Initiatives• Efficient Ship Engines

• Efficient Shipboard/Expeditionary HVAC

• Efficient Generators

Afl

oa

tA

sh

ore

AlternativesAssure Mobility & Protect Critical Infrastructure

EfficiencyExpand Tactical Reach & Lighten the Load

Alternative Energy• Large scale solar at numerous installations

• Geothermal at Fallon, NV, El Centro, CA

• Wind at San Nicolas Island, CA, Everett, WA

• Ocean Thermal at Hawaii or Guam

• Tidal Current at Parris Island, SC

• Portable Renewable Power Generation

Alternative Fuel Vehicles• Procure hybrid electric, neighborhood electric,

flex fuel vehicles

• Install and utilize alt fuel infrastructure

Reduced Power Consumption• Auditing, advanced metering, smart grid

• New buildings & major renovations 30%

better than ASHRAE

• Lighting, HVAC, weatherization

• ECIP, ESPC/UESC, other alternative

financing vehicles

• Energy awareness & training

Reduced Petroleum Consumption• Reduce average vehicle size

• Reduce number of vehicles

Key Energy Initiatives Afloat & Ashore

Energy Security

Net Zero Bases

Great Green Fleet

25

Naval forces require secure,

sufficient, reliable, and

sustainable energy to maintain

mission effectiveness

High fuel consumption rates

place a significant stress on

logistics lanes that enable the

exercise of seapower

Access to sufficient quantities

of petroleum-based fuels

relies on vulnerable logistics

lanes outside the theater of

operations

“Logistics is an Achilles heel of ours… A force that was more fuel efficient would have

reduced forces required to support warfighting assets and reduced warfighting assets

required to support supply assets. This would have significantly added warfighting

capacity to forces assigned.”

- Global ’09 Participant

“Sea control of logistics

lanes, as well as defense of

related logistics bases, were

as important or more

important than sea control

of the main objective area,

as secure logistics were key

to being able to maintain a

seaborne presence and

continue the sea control

fight.”

- Global ’09 Summary

Assure Mobility

Expand Reach

Green Footprint

Energy Security

Global 2009

Confirming Our Focus on Energy Security

26

Navy Energy Strategy

Conservation

Efficiency

Alternatives

“Secure, Sufficient,

Reliable, and

Sustainable Energy”

Energy SecurityEnergy Security

• Optimize existing platforms

• Leverage new technologies

• Implement best practices and policies

• Demonstrate energy awareness

Environmental StewardshipEnvironmental Stewardship

• Utilize sustainable sources

• Secure critical infrastructure

Reduce tacticalfuel consumption

Increase tacticalfuel efficiency

Increasealternative fuel

Reduce shoreenergy consumption

Increase shoreenergy efficiency

Increase reliable and renewable energy

TT

aa

cc

tt

ii

cc

aa

ll

Increase Tactical

Energy Security

Increase Tactical

Energy Security

SS

hh

oo

rr

ee

Reduce Navy’s Carbon Footprint

Increase Shore

Energy Security

Increase Shore

Energy Security

27

Navy Energy Line of Sight

Task Force Energy is laying the foundation for

a long-range holistic Energy Strategy

10 Year Goals

• Achieve measurable

results for shore and

tactical energy security

• Link energy and

environmental

stewardship

• Make energy a strategic

resource to provide

operational advantages

30 Year Ambition

• Maintain the long-

range perspective of

the Energy Ambition

• Envision a variety of

alternative futures

• Ensure active

consideration of

energy in future

strategic documents

and planning

5 Year Plan

• Chart an aggressive

technology and policy

course change

• Recognize and

leverage quick wins

• Emphasize energy

across planning,

programming,

budgeting, and

execution

20 Year Vector

• Refine Energy Goals

• Enhance platforms

with cutting-edge

energy technology

• Refine existing

strategic documents

and planning to

address energy

Conservation

Efficiency

Alternatives

“Secure, Sufficient,

Reliable, and

Sustainable Energy”

Energy SecurityEnergy Security

• Optimize existing platforms

• Leverage new technologies

• Display energy awareness

• Implement best practices and policies

Environmental StewardshipEnvironmental Stewardship

• Identify new energy sources

• Ensure reliable supply

Reduce tactical fuel consumption

Increase tactical fuel efficiency

Increase use of non-petroleum fuel

Reduce shore energy consumption

Reduce shore energy intensity

Increase use of clean and carbon

neutral power

TT

aa

cc

tt

ii

cc

aa

ll

Increase tactical

energy security

Increase tactical

energy security

SS

hh

oo

rr

ee

Increase shore

energy security

Increase shore

energy security

Reduce carbon emissions

Stern Flaps

Advanced Hull Coatings

Propeller Pitch Control

Hybrid Electric Drive

Fleet Scheduler Planning Tool

Efficient HVAC Systems

Navy Petroleum Consumption

?

28

Current Maritime Initiatives

Stern Flaps Advanced Hull Coatings

Fleet Scheduler Planning Tool Hybrid Electric Drive Efficient HVAC Systems

29

Current Aviation Initiatives

Efficient F414 Engine for F-18 Fleet

Aviation Incentivized Energy

Conservation Program (i-ENCON)

Improved Flight Management Systems

and Optimized Mission Planning

30

Current Expeditionary Initiatives

LCAC Full Mission Trainers

On-Board Vehicle Power Generation Efficient Environmental Control Units (ECUs)

31

Current Shore Initiatives

Smart Meters & Auditing Energy Conservation

Renewable Energy