News | July 24, 2008

BlueFire Ethanol Awarded Final Permits To Construct The Nation's First Commercial Cellulosic Ethanol Production Plant

IRVINE, Calif.--(BUSINESS WIRE)--BlueFire Ethanol Fuels, Inc. (OTC: BFRE.OB), a leader in cellulosic ethanol production technology, was granted a conditional-use permit ("CUP") from the County of Los Angeles, Department of Regional Planning, to permit the construction of the nation's first commercial facility to convert biowaste into ethanol.

The Los Angeles County Planning Commission approved the use permit for operation of the plant on 10 undeveloped acres near Lancaster, California, in the Antelope Valley. BlueFire plans to initiate commercial operation of the plant in late 2009.

"We are thrilled to receive this permit," said Arnold Klann, president and CEO of BlueFire Ethanol, "and we see this construction of our first cellulosic ethanol the United States plant as a catalyst for the advancement of cellulosic fuel production throughout our nation."

The new facility will use BlueFire's commercially-ready, patented and proven Concentrated Acid Hydrolysis Technology Process. This will allow the profitable conversion of cellulosic waste ("Green Waste") into as much as 3.2 million gallons of cellulosic ethanol per year. Derived from non-foodstock urban, forestry and agricultural residues, this form of ethanol is a completely renewable and highly-economical alternative to gasoline and other types of ethanol.

BlueFire Ethanol selected the Lancaster location because an estimated 170 tons of biowaste material, including woodchips, grass cuttings and other organic waste, already passes by the property every day. The plant is also designed to use reclaimed water and lignin, a byproduct of the production process, in order to produce its own electricity and steam.

"By locating biorefineries directly in the markets with the highest demand for ethanol, our technology can also help surrounding cities manage landfill waste, solving two problems for the price of one," added Klann.

As part of a strategy to control costs and accelerate production at the Lancaster facility, BlueFire Ethanol has already implemented production of pre-assembled modules which will comprise the Lancaster biorefinery.

"Prefabrication and modular construction has proven itself to be the best method for maintaining quality, controlling costs and creating the fastest to-market time for the deployment of complex facilities," said Klann. "Plus, the size of our Lancaster facility is consistent with the feedstock-gathering capabilities in developing countries where aggregation of large quantities of useable feedstock is not as practical. As such, this approach also allows us to set a standard with a manufactured product and export our facilities as a turn-key product around the world."

BlueFire Ethanol is also one of six ethanol companies awarded $40 million funding from the U.S. Department of Energy for its construction a larger ethanol production facility using cellulosic wastes diverted from landfills in Southern California. The facility will produce approximately 17 million gallons of cellulosic ethanol per year from green waste, wood waste and other cellulosic urban wastes.

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, BlueFire's 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.

Copyright 2008 Business Wire All Rights Reserved

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