Blue Biofuels, Inc.

What they do

Blue Biofuels was incorporated in Nevada in 2012 and became a renewable energy technology company in December 2013. Its CTS process, invented by CEO Ben Slager in 2018, is a continuous mechanical/chemical process that converts cellulosic feedstock such as king grass and agricultural waste into soluble sugars, which can be fermented into cellulosic ethanol and further converted using the licensed Vertimass process into sustainable aviation fuel (SAF) and bio-gasoline. The company built a pilot plant completed in 2023 and finalized upscaling and testing in 2025; it has not generated material revenues.

Revenue drivers

• CTS technology licensing and plant development — The core planned revenue source is building and operating commercial CTS plants or licensing the CTS process; no material revenues have been generated to date.
• Ethanol-to-SAF via VertiBlue Fuels joint venture — A 50-50 joint venture formed in January 2024 with Vertimass to build an ethanol-to-SAF facility in Florida, targeting 10-25 million gallons initially and approximately 70 million gallons per year thereafter.
• Government fuel credits and grants — Planned revenue support includes D3 and D7 RINs, Section 45Z Clean Fuel Production Credits, state Low Carbon Fuel Standard credits, and a $1.15 million SBIR Phase 2 DOE grant already received.
• International licensing and joint ventures — After the first plant is profitable, the company intends to license CTS or form joint ventures with foreign partners, but these are stated plans only.

Recent performance

Blue Biofuels has reported no material revenue, and its most recent XBRL annual revenue figures are $134,319 in 2017 and $60,000 in 2019. Annual net losses were $-2.1M in 2021, $-4.0M in 2022, $-3.1M in 2023, $-1.4M in 2024 and $-2.9M in 2025, with diluted EPS of $-0.008, $-0.014, $-0.01, $-0.005 and $-0.009 respectively. Operating cash flow improved from $-2.5M in 2021 to $-845,002 in 2025. At June 30, 2026, total assets were $1.3M, total liabilities were $5.4M, shareholder equity was negative $4.1M, and cash and equivalents were $22,040.

Strategy

Management's stated plan is to complete design and operational parameters from its pilot plant, then build a first commercial-scale CTS facility with project financing. To pursue that financing, in September 2024 and September 2025 the company applied for two USDA Section 9003 loan guarantees: $149 million for a CTS commercial facility and $148 million through VertiBlue Fuels for a Vertimass-process facility. VertiBlue Fuels plans to start on sugarcane ethanol and switch to cellulosic ethanol once the first CTS factory is finalized. After the first plant is profitable, the company intends to add ten plants in Florida, then expand in the United States and internationally via licensing or joint ventures.

Risks

• No material revenue — The company has not generated any material revenues from its business and may never commercialize the CTS process.
• Going-concern liquidity — At June 30, 2026, cash was $22,040 against total liabilities of $5.4M and negative shareholder equity of $4.1M.
• Project financing uncertainty — Commencing commercial production requires project financing, and the two USDA Section 9003 loan guarantee applications require an integrated demonstration unit run for 120 days on the same feedstock.
• Credit program dependence — Planned revenues depend on programs such as D3 and D7 RINs, Section 45Z credits (which do not apply to fuel sold after December 31, 2029) and state Low Carbon Fuel Standard credits.

Outlook

Management says the CTS process is ready and suitable to build a first production plant, and that pilot-scale upscaling and optimization were finalized in 2025 with third-party confirmation of conversion results. The company is finalizing design and operational parameters to produce operating cost estimates for a full-scale commercial system. Commercial production and the VertiBlue Fuels SAF facility both depend on obtaining project financing, including the pending USDA loan guarantees.