Blue Biofuels Reveals the Highly Positive Impact of the Inflation Reduction Act on Its Business Outlook

PALM BEACH GARDENS, FL, July 25, 2023 (GLOBE NEWSWIRE) -- Blue Biofuels, Inc. (OTCQB: BIOF). Blue Biofuels (the “Company”) would like to update its shareholders on the recently passed Inflation Reduction Act and its impact on the Company. The Company plans to sell cellulosic ethanol and cellulosic Sustainable Aviation Fuel to the market. Cellulosic biofuels already came with valuable credits from the Energy Policy Act passed in 2005 that mandated renewable fuel blending into the fuel supply monitored by the EPA. The Inflation Reduction Act passed on August 16, 2022, and clarified this year by the Biden Administration, provides additional fuel credits.

These credits that Blue Biofuels seeks to obtain are highly valuable. Section 45Z of the Inflation Reduction Act offers a Clean Fuel Production Credits (CFPC) per gallon of transportation fuel produced. For a qualified facility built by paying at least prevailing wages, the CFPC credit amounts are $1.75 per gallon of sustainable aviation fuel produced and $1 per gallon of other renewable fuels. In addition, Each gallon of cellulosic ethanol carries a D3 RIN currently worth $3.02/gallon, or $4.83/gallon of Sustainable Aviation Fuel (SAF). On top of that, if the fuel is sold in California, it would be eligible for a Low Carbon Fuel Standard Credit (LCFS) currently worth $72.50 per Metric Ton of carbon reduced from the lifecycle creation of the fuel, which should translate to around $0.49/gallon for SAF produced by Blue Biofuels. In total, these three credits add up to $7.07 per gallon of sustainable aviation fuel on top of the market price of around $2.30 per gallon.

In addition to these regulatory credits and incentives, there are government grants and loans available to support the commercialization of technologies like the Cellulose-To-Sugar process of Blue Biofuels.

Blue Biofuels offers a unique path to making SAF that belongs only to Blue Biofuels. Blue Biofuels is capable of making sustainable aviation fuel from cellulosic feedstocks first by converting the cellulose in feedstocks into sugars using the Company’s patented and proprietary Cellulose-to-Sugar process, then by converting the sugars into ethanol using a standard process, and then converting the ethanol into sustainable aviation fuel and related products via the patented Vertimass process that the Company has licensed. No entity currently makes SAF from cellulosic biomass.