BLUE BIOFUELS, INC. Annual Report - How They Did This Year (Year Ended December 31, 2025)

Hey there! I'm your guide to BLUE BIOFUELS, INC. We'll break down their latest annual report. You'll easily see how they're doing. Then decide if they fit your investments.

We have initial details from their filing. It covers the year ending December 31, 2025. Let's see what we've learned!

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What BLUE BIOFUELS, INC. Does

BLUE BIOFUELS, INC. started in Nevada in 2012. This technology company focuses on renewable energy, biofuels, and lignin. They aim to create better, greener fuel. As of December 31, 2025, the company mainly researches and develops. They also test their unique technology at a small scale. They haven't started full production. They also haven't made much money from product sales.

Their main technology is Cellulose-to-Sugar (CTS). It breaks down plant materials like grasses or farm waste. These become sugars, which then turn into fuel. That's their CTS process! CEO Ben Slager invented this reactor in 2018. They secured patents in the U.S. and other countries. These include Japan, Australia, Russia, and El Salvador. More patents are pending.

Their CTS process is cool because it's:

• Versatile: It uses almost any plant material. This includes non-food crops, unlike corn. This flexibility means less worry about crop prices.
• Eco-friendly: It creates no toxic waste. It also has a low carbon footprint. Plants absorb the CO2 released when fuel burns. So, it adds no new CO2 to the air. This differs from fossil fuels. It helps create a net-zero or carbon-negative fuel.
• Efficient: Their "king grass" feedstock yields much fuel. They claim up to 3,500 gallons per acre each year. Corn ethanol yields only about 600 gallons per acre. This higher yield means less land is needed. It also means lower raw material costs.

The company filed for Chapter 11 bankruptcy in 2018. They successfully emerged in 2019. All shareholder investments remained intact. This shows past money problems. But it also shows their ability to reorganize and continue.

How They Performed This Year (2025) & Recent Milestones

The past year (2025) brought big technology developments:

• In 2023, they built and fine-tuned their pilot plant. This is a smaller version of a full factory. They optimized the main CTS process part. They achieved steady sugar yields and process stability.
• In 2025, they finished scaling up and testing. They optimized the pilot plant's pre- and post-processing. This step is key for designing a large factory. It covers the whole process, not just the reactor.
• A $1.15 million grant from the U.S. Department of Energy (DOE) partly funded this. They successfully completed and reported on it. This grant's success confirms their technology is ready. It means they can now build a full-scale production plant!
• BLUE BIOFUELS, INC. made no major sales in 2025. They kept investing in research and development. They also funded pilot plant operations. And they protected their inventions. This usually means losing money before selling products.

Big Moves & Future Plans

BLUE BIOFUELS does more than make sugar from plants. They are aiming for the skies – literally!

• They licensed the Vertimass Process technology. It turns ethanol (alcohol fuel) into Sustainable Aviation Fuel (SAF). It also makes other renewable fuels like bio-gasoline. This license expands their product range.
• In January 2024, they joined Vertimass. They formed VertiBlue Fuels, LLC, a 50-50 venture. This lets them share big money investments. They also share risks for building large fuel factories.
• VertiBlue Fuels plans an ethanol-to-SAF factory in Florida. They first aim to produce 10-25 million gallons of SAF. They plan to expand to about 70 million gallons per year. This would make them a big player in the SAF market.
• The factory will first use sugarcane ethanol. Later, they will switch to their own cellulosic ethanol. They make this from plant waste using CTS technology. This phased plan lets them enter the SAF market faster. They use existing ethanol while developing their own. Their strategy: build CTS and ethanol factories first. These will be next to SAF conversion plants. This maximizes government incentives. It also achieves full vertical integration.

The Market & Government Support: Why Biofuels are Attractive

The U.S. ethanol industry is competitive. Over 200 plants exist, mostly using corn. BLUE BIOFUELS believes they can make more money. They won't depend on corn prices. They plan long-term deals with plant suppliers. Also, their cellulosic biofuels get bigger government help. This help makes these advanced fuels affordable.

Here's how the government helps:

• Renewable Fuel Standard (RFS) & RINs: The EPA requires renewable fuel in transportation fuel. Companies making these fuels get special credits. These are called Renewable Identification Numbers (RINs).
  • D3 RINs are for cellulosic ethanol. BLUE BIOFUELS aims to make this. They are worth about $2.44 per gallon now. This is more than D6 RINs for corn ethanol. D6 RINs are worth $1.40 per gallon. This higher value means more money for producers. It makes their product more competitive.
  • The government wants more cellulosic biofuels. Mandates rise from 840 million gallons (2023). They propose 1.36 billion gallons by 2027. This growing demand helps D3 RINs. It directly benefits companies like BLUE BIOFUELS.
• Clean Fuel Production Credit (CFPC): This tax credit comes from the Inflation Reduction Act. It rewards making clean transportation fuel. It ranges from 20 cents to $1 per gallon. The amount depends on the fuel's carbon level. It also depends on meeting labor standards. SAF credits are even higher. They start at 35 cents and go up to $1 per gallon. A 70-million-gallon SAF factory could get $70 million yearly. BLUE BIOFUELS will apply for these credits. They will do this when building their factories.
• Low Carbon Fuel Standard (LCFS) Credits: Some states, like California, offer credits. These reward reducing CO2 emissions. This covers a fuel's entire production. These credits are valuable, about $71 per metric ton of CO2 reduction. LCFS gives more money for very low-carbon fuels. Cellulosic biofuels and SAF should qualify.

These incentives are key to the company's plan. They make advanced biofuels more affordable. They also attract investors. This reduces risk for initial money spent. It also boosts long-term money-making.

Financial Snapshot (from this filing)

As of March 19, 2026, the company has 320,308,112 shares. Regular investors own voting stock worth about $32.6 million. This was as of their last second quarter. This value shows what investors think of their future. The company is not yet making sales. This is normal for a company in development. Expect the company to be losing money now due to high research, development, and administrative costs. They will need much more money to start full production.

Things to Keep in Mind (Potential Risks)

• Project Financing: Building full-scale factories needs much money. This could be hundreds of millions of dollars. The company must borrow money, sell ownership shares, or partner. If they can't get enough money on good terms, factory construction could be delayed or stopped. This would hurt their ability to make sales and profit. It could also mean more shares issued. This reduces your ownership percentage.
• Regulatory Approvals: New biofuel plants need many government permits. They must meet strict testing and approval rules. Agencies like the EPA handle this. Delays getting permits could raise costs. It could also extend timelines. Or even stop the factory from running.
• CFPC Expiration: The Clean Fuel Production Credit (CFPC) ends after December 31, 2029. This is important for long-term plans. If this or other help ends or shrinks, it could greatly affect future factory profits. The company's money-making depends on continued policies.
• Technology Scale-Up Risk: The pilot plant works well. But scaling CTS to full production has built-in problems. Unexpected issues could mean spending more than planned. Or not making things efficiently. Or failing to produce the expected amount. This would change their money forecasts.
• Market Adoption and Competition: The market for advanced biofuels and SAF is new. This is true despite government rules. Other biofuels, fossil fuels, or alternative energy compete. This could affect demand and prices for BLUE BIOFUELS' products.
• Raw Material Supply and Cost: The CTS process is versatile. But getting steady, large, and cheap raw materials is key. This includes king grass or farm waste. Changes in raw material availability or price could hurt. It could affect production costs and how much money they make.

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This is a great start to understanding BLUE BIOFUELS, INC.! We now grasp their technology and progress. We also see their big future plans. This includes the Sustainable Aviation Fuel market. Strong government help supports these plans.