Blue Biofuels Concludes Department of Energy Phase 2 SBIR Grant

Rhea-AI Summary

Blue Biofuels (OTCQB:BIOF) announced completion of its Phase 2 SBIR grant from the U.S. Department of Energy on Oct 9, 2025, enabling scale-up of its patented Cellulose-to-Sugar (CTS) technology toward commercialization.

The program advanced all process stages from biomass harvesting through fermentation and distillation, produced commercially viable ethanol yields, reduced processing costs, and validated feedstock flexibility using sugarcane bagasse and company-grown king grass. A Front-End Loading 2 (FEL-2) engineering study validated the process design and economics for the planned Frostproof, Florida cellulosic ethanol facility. The company says its cellulosic ethanol can serve as a feedstock for Sustainable Aviation Fuel (SAF) and reduce carbon emissions by more than 80%.

Positive

• Completed DOE Phase 2 SBIR enabling scale-up toward commercialization
• FEL-2 engineering study validated process design and facility economics
• Achieved commercially viable ethanol yields across scaled process stages
• Demonstrated feedstock flexibility with sugarcane bagasse and king grass
• Cellulosic ethanol suitable for SAF with >80% carbon emissions reduction

Negative

• None.

Advancing Toward Commercialization

PALM BEACH GARDENS, FL, Oct. 09, 2025 (GLOBE NEWSWIRE) -- Blue Biofuels, Inc. (OTCQB: BIOF).

Blue Biofuels is pleased to announce the successful completion of its Phase 2 Small Business Innovation Research (SBIR) grant awarded by the U.S. Department of Energy. Over the past year, this grant has enabled Blue Biofuels to advance the scale-up of its patented Cellulose-to-Sugar (CTS) technology toward full commercialization. With this milestone, the company is now positioned to move forward with commercial deployment and preparations for its first production facility in Frostproof, Florida.

Through the support of this grant, Blue Biofuels successfully scaled up every stage of its process, from biomass harvesting through fermentation and distillation. The company achieved commercially viable ethanol yields, significantly reduced processing costs, and demonstrated consistent success using both sugarcane bagasse and company-grown king grass as feedstocks.

These results confirm the flexibility of the CTS technology to utilize a variety of biomass sources, paving the way for expansion into diverse agricultural regions and climates where local feedstocks such as corn stover, wheat straw, or other residues are available. Furthermore, the completion of a Front-End Loading 2 (FEL-2) engineering study validated the process design and economics for Blue Biofuels’ cellulosic ethanol facility in Frostproof.

The completion of this grant underscores not only the scalability and versatility of Blue Biofuels’ CTS technology but also its transformative potential to convert agricultural residues into low-carbon fuels. The company’s cellulosic ethanol will serve as a key feedstock for Sustainable Aviation Fuel (SAF), capable of reducing carbon emissions by more than 80%.

About Blue Biofuels, Inc.

Blue Biofuels is based in Florida and has the goal to produce biofuels through its patented Cellulose-to-Sugar (CTS) technology and its licensed Vertimass technology as well as in VertiBlue Fuels, LLC, its 50:50 joint venture with Vertimass. CTS is a sustainable, and renewable green energy system with the potential to achieve a near-zero carbon footprint. The CTS process can convert cellulose from virtually any plant material – grasses, forestry products, and agricultural waste such as sugarcane bagasse and wheat straw — into sugars that are subsequently processed into biofuels, such as ethanol and, through the Vertimass Process, into sustainable aviation fuel.

The CTS process is a patented and proprietary technology wholly owned by Blue Biofuels. Blue Biofuels’ CTS technology represents significant progress in renewable energy, offering a sustainable solution that reduces reliance on food crops for ethanol production. By utilizing abundant and renewable biomass sources such as king grass, sugar cane bagasse, and corn stover, the company is positioned to contribute meaningfully to the global transition toward cleaner energy. This versatility allows the company to take advantage of feedstock variability in different locations around the US and the world.

Special Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company’s actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s control. The words “believes”, “may”, “will”, “should”, “would”, “could”, “continue”, “seeks”, “anticipates”, “plans”, “expects”, “intends”, “estimates”, or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.

Contact:
Ben Slager, CEO and Chairman
Ben@Bluebiofuels.com

Anthony Santelli, CFO
Anthony@Bluebiofuels.com

FAQ

What did Blue Biofuels announce on Oct 9, 2025 regarding its DOE SBIR Phase 2 (BIOF)?

Blue Biofuels said it completed its Phase 2 DOE SBIR, advancing CTS scale-up and enabling commercial deployment plans.

How does the Phase 2 SBIR completion affect BIOF's Frostproof, Florida project timeline?

The company reported the grant and a completed FEL-2 study validated process design and economics, positioning the Frostproof project for commercial deployment.

Which feedstocks did Blue Biofuels scale successfully under the BIOF SBIR program?

Blue Biofuels demonstrated consistent success using sugarcane bagasse and company-grown king grass as feedstocks.

What environmental benefit did Blue Biofuels claim for its cellulosic ethanol (BIOF)?

The company said its cellulosic ethanol can reduce carbon emissions by more than 80% as a feedstock for SAF.

Did the SBIR-funded work show commercial yields and cost improvements for BIOF's CTS process?

Yes; the company reported commercially viable ethanol yields and significantly reduced processing costs across the scaled process.