PALM BEACH GARDENS, FL — Blue Biofuels, Inc. has marked a significant step in bioenergy innovation by completing its Phase 2 Small Business Innovation Research (SBIR) grant from the U.S. Department of Energy. The grant facilitated the scale-up of the company’s patented Cellulose-to-Sugar (CTS) technology, demonstrating its readiness for commercial application in producing cellulosic ethanol—a critical intermediate for Sustainable Aviation Fuel (SAF).
“This grant completion not only validates our CTS technology’s scalability but also accelerates our path to delivering low-carbon fuels essential for aviation decarbonization,” said Ben Slager, CEO of Blue Biofuels.
Over the grant period, Blue Biofuels optimized every process stage, from biomass harvesting to fermentation and distillation, achieving commercially viable ethanol yields while slashing processing costs. The technology proved effective with feedstocks like sugarcane bagasse and king grass, and its flexibility extends to regional alternatives such as corn stover and wheat straw. This adaptability addresses a key market challenge: feedstock variability, which has historically hindered bioenergy scalability in diverse agricultural zones.
Complementing the technical progress, the company completed a Front-End Loading 2 (FEL-2) engineering study, confirming the economic feasibility of its planned cellulosic ethanol facility in Frostproof, Florida. In the broader SAF landscape, where global production remains below 1% of aviation fuel demand (per IATA estimates), this development enhances supply chain resilience. Stakeholders, including SAF producers and airlines, can leverage CTS-derived ethanol to meet mandates like the EU’s ReFuelEU Aviation targets or U.S. tax credits under the Inflation Reduction Act, potentially reducing lifecycle emissions significantly compared to fossil jet fuel.
However, challenges persist, including capital-intensive facility builds and competition for biomass resources. For investors and bioenergy firms, this milestone signals reduced technical risk, making Blue Biofuels a candidate for partnerships in joint ventures like its existing VertiBlue Fuels collaboration with Vertimass. Strategically, prioritizing regional feedstock sourcing could mitigate logistics costs, estimated at 20-30% of bioethanol production expenses, and align with sustainability certifications to access premium SAF markets.
Source: Blue Biofuels Inc. via GlobeNewswire, “Blue Biofuels Concludes Department of Energy Phase 2 SBIR Grant,” October 9, 2025.
