BlueFire California Cellulosic Ethanol Project To Receive $40 M From DOE

The U.S. Department of Energy (DOE) and BlueFire Ethanol Fuels, Inc. (OTCBB: BFRE) today announced a cooperative agreement, which plays a critical role in bringing cellulosic ethanol to market.

The agreement provides BlueFire with the first of two stages of the Grant funding (totaling $40 million) for its second U.S. commercial ethanol production facility located in California. This facility was designated to demonstrate the economic feasibility and environmental superiority of producing cellulosic ethanol from post-sorted green waste and other cellulosic materials.

BlueFire Ethanol's California project was selected by the U.S. DOE alongside five other U.S. companies in February of this year. The program provides joint funding for the construction of a commercial cellulosic ethanol facility. This agreement finalizes the first phase of the partnership and will govern all aspects of the project leading up to construction. With the agreement in place, BlueFire will use the funds to continue pre-construction development activities which include design, environmental engineering, permitting and other preliminary activities.

BlueFire Ethanol, Oct. 8, 2007