But critics, including environmentalists, say biofuel production is too costly and on a large scale may do more harm than good.
Most of the group's ships will run on a mix of 90 per cent petroleum and only 10 per cent biofuels, though that could change. The Navy originally aimed for the ratio to be 50/50.
Navy Secretary Ray Mabus and Agriculture Secretary Tom Vilsack were scheduled today to inspect the ships before they set sail off San Diego.
The Defense Department uses 90 per cent of the energy consumed by the federal government, spending billions of dollars annually on petroleum fuels to support military operations.
Also Read
All military branches are looking to cut their ties to foreign oil as part of a national security strategy. Since 2008, the Navy has cut oil consumption by 15 per cent since 2008 and the Marine Corps has reduced it by 60 per cent.
The federal government has invested more than USD 500 million into drop-in biofuels, which can be used without reconfiguring engines. The fleet also includes nuclear vessels, hybrid electric ships and aircraft powered partly by biofuels.
The Navy in 2009 called for ships to run on 50 per cent biofuel and 50 per cent petroleum. After that, the price for a barrel of oil topped USD 100 and has since dropped to as low as USD 29 a barrel.
Retired Navy Capt Todd "Ike" Keifer, who has published a study on the Navy's plan, said he does not believe the Navy will ever get "any meaningful quantities of cost-competitive biofuels."
"Biofuels sound good, but it turns out that making carbohydrates (biomass) into hydrocarbons (ideal fuels) is a very laborious and wasteful process that is far more costly and much harder on the environment than producing fossil fuels," he said.