The partners will employ the ARA and Chevron Lummus Global (CLG) process to produce certification quantities of renewable fuels with the demonstration facility expected to come up in St. Joseph, Missouri.

Blue Sun CEO Leigh Freeman said that the collaboration will meet the goals of Department of Defense (DoD) for the increased production of alternative fuels.

"The skill sets and experience of Blue Sun and ARA cover all aspects required to deliver renewable jet and diesel at DoD cost targets, on DoD timelines," said Freeman.

ARA, CLG, US Air Force Research Laboratory, Agrisoma Biosciences and National Research Council Canada had earlier conducted the first civilian jet flight operated on 100% Biofuels, using ‘ReadiJet’ produced from Agrisoma’s Resonance feedstock and ARA and CLG’s BIC.

In addition, Blue Sun has secured a license agreement with CLG for use of the BIC to produce fuels that meet the necessary American Society for Testing and Materials (ASTM) requirements for 100% replacement, renewable jet fuel and diesel in the company’s bio-refineries and joint ventures throughout the world.

ARA’s Biofuels program manager Chuck Red noted, "The hundred barrels-per-day demonstration system will be capable of producing large fuel samples, a key enabler for ASTM certification of our fuels."

The demonstration facility is expected to be unveiled by the end of March 2013 and will be operational by the September of the same year.