Dr. Hanlon has spent over three decades researching this ability and this four year grant will fund scientific research into exactly how cephalopods achieve their unique camouflage ability.  The deliverables on this project include a fundamental understanding in exactly how cephalopods sense their surrounding environment and how their chromophores and iridophores respond to changes in their surroundings.

The New York Times interviewed Dr. Hanlon back in 2008 about the amazing camouflage ability of the cuttlefish:

http://www.youtube.com/watch?v=mW4PbW893ik

I can imagine that ultimately the armed forces would adapt this understanding into adaptable camouflage for troops and vehicles.  It will be interesting to learn what this research uncovers.

(via Physorg)