Plant to Border Lancaster, CA Landfill

IRVINE, Calif.–(EMWNews)–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.

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