BlueFire Ethanol Receives First Installment of DOE Grant Funds

BlueFire Ethanol Fuels, Inc. (OTC: BFRE.OB), a leader in cellulosic ethanol production technology, has received the first installment of funding from the U.S. Department of Energy (DOE) for the development of the BlueFire Mecca, LLC plant in Southern California.

Upon completion, the plant will produce approximately 17 million gallons of cellulosic ethanol per year from green waste, wood waste, and other cellulosic urban wastes. Receipt of this funding brings to fruition BlueFires selection last year, along with five other U.S. Companies, as a recipient of a total of $40 million in DOE funding aimed at increasing the use of renewable and alternative fuels.

A pioneer in cellulosic ethanol production, BlueFire holds the sole North American rights to the Arkenol Process Technology, a patented process for transforming cellulosic waste from landfills into ethanol. By locating its plant in Southern California, the company will utilize this process to meet the needs of a regional market with high ethanol demands while alleviating the onus on cities and municipalities to handle increasing amounts of landfill waste.

This facility represents the future of alternative fuel production, said Arnold Klann, CEO of BlueFire Ethanol. It will serve as the effective meeting place of demand and supply, bringing cellulosic ethanol to market while simultaneously helping break dependence on foreign oil and reducing the waste management load on cities.

The Southern California-based facility is a replicable model of a process that can be implemented at several sites across the country, serving the dual purposes of waste management and biofuel production. To this end, BlueFire Ethanol also recently announced it was granted a conditional-use permit (CUP) from the County of Los Angeles, Department of Regional Planning, to construct the countrys first commercial facility to convert biowaste into ethanol. This smaller plant, which will be located in Antelope Valley near Lancaster, California, will produce up to 3.2 million gallons of cellulosic ethanol annually from biowaste materials such as woodchips, grass cuttings, and other organic waste. Scheduled to commence operations in late 2009, the Lancaster plant will also utilize reclaimed water and generate its own electricity and steam from lignin produced as a by-product of the process.

We are thrilled by the progress on these two plants, said Klann. Yet, at the same time, they are a glimpse of what can be, and we look forward to continuing to utilize the latest in innovative and eco-friendly technology to increase significantly the production of renewable fuels.

About BlueFire Ethanol Fuels

BlueFire Ethanol Fuels, Inc. was established to deploy a commercially ready, patented, and proven Concentrated Acid Hydrolysis Technology Process for the profitable conversion of cellulosic ("Green Waste") waste materials to ethanol, a viable alternative to gasoline. BlueFire is the only cellulose-to-ethanol company worldwide with demonstrated production of ethanol from urban trash (post-sorted MSW), rice and wheat straws, wood waste and other agricultural residues.

BlueFire is one of six ethanol companies awarded funding from the U.S. Department of Energy to construct ethanol production facilities. Unlike remote corn ethanol production plants, BlueFires biorefineries will be located in markets with the highest demand for ethanol. This dramatically reduces delivery costs and increases biofuels supply, while providing a unique waste processing technology that helps cities better manage the problem of overflowing landfills. For more information, go to www.BlueFireEthanol.com.

If you would like to receive regular updates on BlueFire Ethanol, please select this following link: http://www.b2i.us/irpass.asp?BzID=1437&to=ea&s=0.

Forward-Looking Statements

Statements about BlueFire Ethanol, Inc.'s expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. BlueFire's actual results could differ materially from expected results. BlueFire undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; BlueFire will appropriately inform the public.

Contacts:

BlueFire Ethanol Fuels, Inc.
Rigel Stone, 949-588-3767, ext. 404
rstone@bluefireethanol.com
or
Investor:
Liolios Group, Inc.
Scott Kitcher or Ron Both, 949-574-3860
info@liolios.com
or
Media:
Avalanche Strategic Communications
Laura Finlayson, 201-488-0049
laura@avalanchepr.com

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