Department Of Energy Increases Funding To $81 M For Phase II Of BlueFire Ethanol's Planned Fulton, MS Biorefinery

IRVINE, Calif., Dec. 7 /PRNewswire-FirstCall/ -- BlueFire Ethanol Fuels, Inc. (OTC Bulletin Board: BFRE), a company focused on changing the world's transportation fuel paradigm through the production of ethanol from non-food cellulosic wastes, announced today that the Department of Energy (DOE) increased funding to $81.1 million dollars for Phase II construction of its cellulosic ethanol biorefinery planned for Fulton, MS. This is in addition to the previously announced Phase I funding for development of the Fulton plant of approximately $7 million dollars. This brings the total funds for Fulton to approximately $88 million dollars. To read the official DOE announcement, visit http://www.energy.gov/news2009/8352.htm.

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"The Department of Energy's continued support of BlueFire Ethanol's project development reaffirms the viability of our technology and demonstrates the Administration's support of innovative technologies designed to achieve rapid deployment of cellulosic biofuel projects," said Arnold Klann, CEO of BlueFire Ethanol. "This award will help ensure that BlueFire remains on track for executing our business growth strategy."

The Fulton, MS project will allow BlueFire to utilize green and wood wastes available in the region as feedstock for the ethanol plant that will be designed to produce approximately 18 million gallons of ethanol per year. BlueFire is currently in the licensing and permitting stage for the facility.

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 waste materials ("Green Waste") 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's biorefineries will be located near markets with high demand for ethanol and will use locally available biomass. This should dramatically reduce delivery costs and increase biofuel supplies, while providing a unique waste processing technology to help America's cities better manage the increasing problem of overflowing landfills.