BlueFire Ethanol Loan Guarantee Application for the Lancaster Project Advances to Final Phase

Company Meets the Department of Energy Part One Application Requirements and is Invited to Continue in Part Two of the Process

IRVINE, Calif.- BlueFire Ethanol Fuels, Inc. (OTC Bulletin Board: BFRE.OB - News), a company focused on changing the world’s transportation fuel paradigm through the production of ethanol from non-food cellulosic wastes, today announced that the Department of Energy has determined that BlueFire Ethanol has met the requirements of Part One of the application process and that they have been invited to continue onto Part Two for the financing of their Lancaster Project.

The loan guarantee pursuant to this program would support the construction of BlueFire’s "shovel-ready" commercial (cellulosic) biofuels plant planned for Lancaster, CA. Under this program BlueFire has requested $56 million, which would be combined with other sources to provide sufficient capital for the project’s construction and launch. BlueFire has completed the permitting process and is poised to break ground upon completion of the financing and Loan Guarantee agreements. The Lancaster facility is designed to convert post-sorted cellulosic waste materials diverted from southern California’s landfills to produce approximately 3.9 million gallons of fuel-grade ethanol per year.

"We are honored and applaud the Obama administration and the Department of Energy for their continued support of the biofuels industry. We are very optimistic that the DOE will consider the enormous benefits of BlueFire Ethanol’s technology during Part Two of this selection process," said Arnold Klann, CEO of BlueFire Ethanol. "It’s programs like the DOE loan guarantee that enable first-of-its-kind technologies to be in a position to secure the necessary funding to move forward and help provide much-needed energy alternatives to petroleum."

BlueFire Ethanol recently announced its second commercial cellulosic ethanol plant location in Fulton, Mississippi. The 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 nearly 18 million gallons of ethanol per year. BlueFire expects to announce a third planned project facility in the near future.

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 is one of four companies awarded funding from the U.S. Department of Energy under the Energy Policy Act of 2005 to construct cellulosic biorefinery production facilities. 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. For more information, please visit www.BlueFireEthanol.com.

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.

This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). BlueFire Ethanol, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: our successful development and deployment of ethanol production facility or facilities, impact of the company’s expansion plan, and new business development success, future financial results, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties. The forward-looking statements contained herein involve risks and uncertainties that could cause actual results to differ materially from the expectations contained in any such forward-looking statements. These risks include, but are not limited to: failure to manage operating expenses or integrate new facilities and/or technologies, each of which could have a material impact on our business, our financial results, and the company’s stock price. These risks and other factors are detailed in the Company’s regular filings with the U.S. Securities and Exchange Commission. Most of these factors are difficult to predict accurately and are generally beyond the Company’s control. Forward-looking statements speak only as to the date they are made and BlueFire Ethanol, Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

source:money.cnn