Bluefire Ethanol Fuels, Inc. (OTC: BFRE) produces cellulosic ethanol, an emerging but expensive alternative to gasoline. Cellulosic ethanol gained support from the U.S. government with the passage of the Energy Independence and Security Act of 2007. The company uses Arkenol Technology, a process licensed from the Arkenol Group, to break down cellulose from feedstocks like agricultural waste, green waste, and trash. The waste products are turned into sugar, which then ferments and distills into ethanol. Bluefire's favorite input is municipal waste, because it can build its refineries on landfills, cutting feedstock transportation costs and using methane emitted from decomposing waste to help the plant generate 70% of its own electricity. Since there are thousands of landfills around the world, there are literally thousands of opportunities for Bluefire to expand its reach.

Recent growth in the ethanol market has greatly increased demand for corn. Farmers cannot produce enough to meet this demand, which has led to higher corn prices and higher food and ethanol prices. Cellulosic ethanol (also known as "ceetol") made by Bluefire has a major advantage over corn-based ethanol in that it does not depend on food prices or on the capacity to produce a single agricultural product. Bluefire is receiving Department of Energy funding to build its refinery, which helps to offset the hefty installation cost of $5.00 per gallon for a 55 million gallon per year facility. Without such funding, it would be difficult for Bluefire to make ethanol cost-competitive with other fuels, much less turn a profit.

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