The department is expected to announce five initial grants to companies that produce fuels from renewable materials to power the nation’s jet fighters, battleships and other vehicles, reported the Bloomberg News.

DoD is looking to replace the earlier purchased renewable bio fuels in 2011 – 130 million barrels of jet fuel and other petroleum products.

Gevo produces isobutanol from corn and had earlier won an 11,000- gallon (42,000-liter) supply contract from the US Air Force in 2011 is looking to garner contracts for jet bio-fuels.

California-based Solazyme had collaborated with Honeywell International in 2010 on two military contracts while Sustainable Oils supplied about 500,000 gallons of its jet fuel to the military last year.