SOURCE: BlueFire Ethanol

February 28, 2007 12:25 ET

BlueFire Ethanol Wins U.S. Department of Energy Grant

New Process Will Promote Energy Independence, Cleaner Environment

IRVINE, CA -- (MARKET WIRE) -- February 28, 2007 -- BlueFire Ethanol, Inc. (PINKSHEETS: BFRE) has been awarded up to $40 million from the U.S. Department of Energy's (DOE) cellulosic ethanol grant program to develop a solid waste biorefinery project at a landfill in Southern California.

"This award clearly recognizes BlueFire as a leading player in the commercialization of cellulosic ethanol," said Arnold Klann, CEO and President of BlueFire Ethanol. "We look forward to building the first commercial cellulosic ethanol plant in the world that can be repeated across the country, turning cellulosic waste from landfills into ethanol."

"BlueFire Ethanol will play a critical role in helping to bring cellulosic ethanol to market, teaching us how to produce it in a more cost effective manner," Secretary Bodman said. "Ultimately, success in producing affordable cellulosic ethanol could be the key to eliminating our nation's addiction to oil. By relying on American ingenuity for fuel, we will enhance our nation's energy and economic security."

The Southern California Biorefinery Project will turn green waste and wood residues at landfills into about 19 million gallons of fuel grade ethanol per year. Additional products that will also be sold include lignin, gypsum, and yeast. BlueFires's current production estimates for the project will be significantly lower that DOE's cellulosic ethanol goal of $1.07/gal in production costs by 2012, and DOE's current estimate of approximately $2.26/gal.

Klann added BlueFire will help DOE accelerate its goals for the cellulosic ethanol industry with the successful completion of its project.

"This is an important milestone for BlueFire Ethanol and a significant opportunity to demonstrate the use of new energy supplies in our landfills," he added. "Our biorefinery will enable us to be located directly in the markets with the highest demand for ethanol while helping cities to manage landfill waste."

Construction is expected to begin by the end of this year with start-up expected on or before the end of 2009. BlueFire's process could be repeated at most of the more than 1,600 landfill sites across the nation. Because it captures the more potent greenhouse gas methane as part of its process as well as provide renewable fuel, BlueFire will reduce greenhouse gases that cause global warming.

All of the ethanol produced will be sold under the terms of a long-term contract with Petro-Diamond, Inc., a wholly owned Mitsubishi Corp. subsidiary. Colmac Energy will purchase all of the lignin produced for use as boiler fuel for its biomass power plant located in Riverside County. The gypsum will be sold to local landscape wholesalers and the yeast will be sold as an animal feed supplement.

In February 2006, DOE announced a $160 million grant program that would provide cost-share funding over four years to build up to three U.S. biorefineries. The program's goal is to demonstrate that commercial biorefineries can be profitable once initial construction costs are paid. Projects are required to show a 60/40 (industry/government) cost share.

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About us:

BlueFire Ethanol, Inc. is established to deploy the commercially ready, patented, and proven Arkenol Technology Process for the profitable conversion of cellulosic ("Green Waste") waste materials to ethanol, a viable alternative to gasoline. BlueFire's use of the Arkenol Process Technology positions it as the only cellulose-to-ethanol company worldwide with demonstrated production of ethanol from urban trash, rice and wheat straws, wood waste and other agricultural residues. Our goal is to develop and operate high-value carbohydrate-based transportation fuel production facilities worldwide. These "biorefineries" will convert widely available, inexpensive, organic materials such as agricultural residues, high-content biomass crops, wood residues, and cellulose from landfill waste into ethanol. BlueFire intends to build a multinational company that leads the world in producing biobased transportation fuels. Its business will encompass development activities leading to the construction and long-term operation of production facilities while maintaining technological advantage and ownership of the process technology and all its improvements. Ethanol will be produced from biorefinery facilities opportunistically constructed on or near landfills, waste collection and waste separation sites. Each facility will deploy the proprietary technology, which uses all cellulosic waste materials traditionally disposed of in landfills as feedstock. For more information, please see


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.

Contact Information

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