Let me move on to Comstock Fuels. As you all saw, we recently announced that the company completed all validation milestones for our proprietary process, including achieving conversion yields that exceed 100 gasoline equivalent gallons per dry ton, which we believe is industry leading. And we recently confirmed our extremely low carbon intensity scores, down to a score of 15, which represents an over 80% improvement over other renewable feedstock solutions. We also believe this is industry leading, and Billy is going to show you some stunning comparisons about these carbon intensity scores in just a few minutes. These final validations allowed us to complete our full techno-economic analysis, and precisely define our business model for deploying and enabling our trademark Bioleum hub solutions across the Americas.
I’m going to turn it over to Billy to provide a deeper review of our fuels business as we commercialize what is shaping up to be a true game changer in renewable fuels. Hopefully, you all have your video turned on with your Zoom link, so you can follow the slides. But if not, we’ll be positioning them – I’m sorry, we’ll be posting them on a Form 8-K on our website late this afternoon. Billy, please go ahead.
William McCarthy : Thank you, Corrado. And bear with me for a second while I bring up these slides. Okay. And I hope everybody can see. Terrific. So, very excited to be here to talk in a lot more detail about Comstock Fuels. And we’re going to cover a lot of things today. Corrado and I were in San Francisco last week at the ABLC NEXT Conference, the Advanced Biofuel Leadership Conference, with a number of members of our team as well. And it was really good. We had two days of back-to-back meetings, meeting with peers in the industry and other technology providers, as well as some potential customers and partners. And while it was good, it was also very striking. Most in this biofuel industry still, especially on the technology side, have a very myopic view.
They’re focused on one project or one technology, and very few people are talking about how their tech can scale to meet industrywide needs. You contrast that with some time I spent earlier this month at the Advanced Biofuel Association Board Meeting in Washington, DC. And we’re very proud to be new members of this association, the ABFA. We think it’s a group of the most innovative technology developers and the largest fuel producers, who are all working together to advance the industry to new heights, much different than the rest of the pack that we saw at the conference last week. And the truth is, we’ve always been taking this approach. Scalability has been at the forefront of our requirements from day one. And we’re going to show you some more of that.
I’m going to cover three topics today. A couple of these are things we talked about with our peers at the conference last week. But more of this, more interestingly, is some of the stuff we’ve been talking about privately with potential customers and partners, and we’re ready to share it publicly today. We’re going to cover our case for the business and how we look at how our value proposition meets the needs of the market. I’m going to dive down a little bit more into how the process works both at the supply chain level and then inside our Bioleum hub. And then we’re going to talk about our business plan specifically and how we’re going to go about deploying Bioleum hubs across the world. So let’s get started here. I think we’ve covered this a few times before, but to restate.
The big opportunity, 228 billion gallons of transportation fuels are consumed in the United States every year. And only 3 billion of those gallons are advanced biofuels today. And we know that there’s under construction capacity to double that to 6 billion gallons in 2025. But if you think about it, it’s really not that meaningful of a percentage. And so, during my keynote address to the ABLC last week, I challenged our peers that we can all do better. And we showed them a way, a solution, Comstock solution for how we can do it. Now, the one rebuttal to these numbers that’s worth touching on is the notion of electrification of vehicles. And we spend a lot of time looking at this. And we look at some extreme scenarios. So if we said here, we electrified transportation to the point where we reduced consumption of fuel by 60%, we go down to 91 billion gallons a year, remember that 6 billion gallons is still only 6.6% of total fuel consumption.
Biofuel production needs to grow to bridge this gap to help through this transition. And governments recognize this. And that’s why governments around the world, the US included, is bringing more and more support for biofuel production. Now, here’s a way that we look at biofuel, cost versus revenue. What does it cost to produce a biofuel and what is the revenue you receive by selling it. On the right side, we want the revenue to exceed the cost. Now with biofuels, the cost is not just driven by the value of the energy you’ve produced. The credits and other incentives received for producing biofuels weigh heavily on the revenue. The light blue boxes represent that in a couple of different categories, which we’ll look at in more detail in a second.
On the left side, the light blue box CI reduction, carbon intensity reduction, is what are producers doing today to reduce their carbon intensity score, which leads to this higher revenue. Here’s a breakdown of some common biofuels compared to their petroleum alternatives, gasoline and diesel. What you can see here is the contribution of each of these different credits into this price. If we look here at sustainable aviation fuel, $6.60 a gallon. For $2.88 of energy value, the credits received are more than 50% of the total revenue for sustainable aviation fuel. This includes credits from the EPA under the Renewable Fuel Standard, which are known as RINs or renewable identification numbers assigned by the EPA that have a value assigned to them; credit under the Low Carbon Fuel Standard in California where each CI score point reduced is worth a specific dollar value; and finally, the tax credits including the large group of them enacted in the Inflation Reduction Act, which are all dependent on the CI score.
Lower CI score means lower carbon intensity means higher revenue. To maintain competitiveness, producers need to minimize the CI score of their fuels. Here’s another example. Two different types of ethanol, the same molecule. On the left, conventional ethanol made from corn at $2.28 a gallon. On the right, cellulosic ethanol made from woody biomass, like we produce, valued at $5.10 a gallon because of the additional credits received for the carbon reduction. So again, better feedstock in this case, cellulosic versus corn, leads to a better, more valuable product. And we think the most efficient way to do this, to reduce the CI score of the fuel across the board, is to use the lowest CI score feedstock. And to produce the lowest CI score feedstock at scale, we need a new supply chain.
We think the best way to build it is by using existing infrastructure of established industries as much as possible. And that means using waste streams from the forest products industry to produce feedstock for advanced biofuel production. We can do this in abundant quantities today. It’s not a new idea, and we’re not the first to suggest it. But the problem is you can’t stick a tree directly into a refinery and make fuel. Instead, plant the tree. Bioleum fills the gaps necessary to enable this supply chain. Our Bioleum hubs can process forest waste and other qualifying biomass feedstocks into valuable low CI score fuel intermediates. These are feedstocks for existing fuel producers to convert into low carbon fuels in existing refineries. This point is important.
