World Energy Sustainable Products has signed a Memorandum of Understanding (MoU) to purchase Blue Biofuel’s Cellulose-to-Sugar (CTS)-based ethanol and Sustainable Aviation Fuel (SAF).
Ben Slager, CEO, Blue Biofuels said that as production volumes and construction timelines become clearer, Blue Biofuels will bring SAF and ethanol products to the aviation market through World Energy.
“I feel very pleased with the trust from and cooperation with World Energy Sustainable Products, they have the sales volume to absorb our products and bring them to the market, and they are very interested in further developing the markets for sustainable fuels,” said Slager.
Blue Biofuels will register the finished products with regulatory agencies such as the Environmental Protection Agency (EPA), California Air Resource Board, and ASTM International (formerly the American Society for Testing and Materials), to qualify the fuel for use and receive tax credits.
The Florida-based fuel producer’s CTS technology converts plant material and agricultural waste into sugars and lignin. The sugars are then processed into biofuels and lignin into a variety of products. The CTS process is a patented technology owned by Blue Biofuels.
The business claims that the CTS-produced biofuel will be eligible to receive the US EPA’s D3 cellulosic renewable fuel credits, which are around $2.15 per gallon of ethanol. This could provide income in addition to that earned from ethanol or SAF sales. The agency’s current volume targets for cellulosic ethanol are 720m gallons, 1.42bn gallons, and 2.13bn gallons for 2023, 2024 and 2025 respectively.
“We’re happy to support Blue Biofuels’ efforts to bring new innovations to the marketplace,” said Michael Laznik, president, World Energy. “The need for low-carbon fuels is only growing and we are committed to being part of the collaboration and innovation necessary to find new and better solutions.”
A final agreement between the two firms is expected to be reached before Blue Biofuels completes the build of its production facility.
