BlueFire Ethanol Fuels, Inc. received a reimbursement from the Department of Energy (DOE) for $3.8 million, signifying a continued commitment by the current administration and the DOE to bolster such alternative energy sources.

The liquidity provided by this reimbursement will allow BlueFire to capitalize the development of its second ethanol plant, to be located in Fulton, Mississippi. BlueFire is currently operating under a $40M grant from the DOE received in 2007.

BlueFire’s ethanol refining from non-food cellulosic biofuel is achieved via its fully operational, and proprietary, Concentrated Acid Hydrolysis Technology Process. This technology presents a robust solution to the disposal of waste plant matter and a powerful framework for agricultural production of high-yield cellulosic feedstock. The forms of ethanol produced are competitive with gasoline and commercially ready for use in an existing market infrastructure.

CEO of BlueFire, Arnold Klann was quoted as saying, “The DOE’s continued financial support coupled with the current administration’s goal to rapidly deploy cellulosic biofuels projects allows BlueFire to bring to fruition its mission of providing non-food-based biofuels to the densely populated locations in the greatest need of fuel.”

Klann acknowledged that the capital injection from this reimbursement would enable the rapid completion of permitting and preliminary engineering for the Fulton, Miss. plant. Because of the abundance of organic waste in the Fulton region, from both forestry and agriculture, the plant designers are shooting for a goal of 18 million gallons per year of production.

BlueFire is also planning an ethanol biorefinery in Lancaster, CA, designed to use post-sorted cellulosic wastes from Southern California’s landfills. The Company has completed the 20-month process for licensing, and is fully permitted and ready to break ground on this facility, capable of producing 3.9 million gallons per year, as soon as final financing can be obtained.

One of only four companies to be awarded funding from DOE for ethanol production facilities, BlueFire’s strategy is to target markets with geographically opportune demand for ethanol and a where supply of cellulosic biomass can be readily obtained to feed their plants.

This strategy, in conjunction with strong governmental support, makes BlueFire (the only company worldwide, with proven ethanol production capability from cellulose sources like post-sorted urban trash, wood and agricultural waste) the single Company in a position to immediately realize profits from this emerging technology.