Farm Bill Helps Advance U.S. Biofuels Production

Business Wire, May 16, 2008

BlueFire Ethanol to Receive $1.01 per Gallon Production Tax Credit from Farm Bill

IRVINE, Calif. -- BlueFire Ethanol Fuels, Inc. (OTC:BFRE), a leader in cellulosic ethanol production technology, has commended the United States Congress on the passing of the farm bill yesterday. By passing the bill by an overwhelming margin, Congress has ruled out President Bush's threatened veto.

The farm bill is expected to help pave the way for companies like BlueFire Ethanol that are working to increase U.S. biofuels production through its patented, commercially viable and profitable system that transforms cellulosic waste into ethanol.

"The farm bill provides a much needed $1.01 per gallon tax credit for the cellulosic biofuel industry," said Arnold Klann, president and CEO of BlueFire. "Congress's continued support for the development of clean energy technologies is a key step towards full-scale commercial production of cellulosic ethanol and making America energy-independent."

BlueFire Ethanol is one of six ethanol companies awarded funding from the U.S. Department of Energy for its planned 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.

In addition, BlueFire is also in the process of obtaining all necessary permits to commence construction of a smaller facility near Lancaster, California. The Lancaster plant will produce 3.1 million gallons of cellulosic ethanol per year from the cellulosic fraction of post-sorted municipal solid waste. By locating biorefineries directly in the markets with the highest demand for ethanol, BlueFire Ethanol's technology can also help cities manage landfill waste -- solving two problems for the price of one.

BlueFire's facilities will use its commercially-ready, patented and proven Concentrated Acid Hydrolysis Technology Process for the profitable conversion of cellulosic waste ("Green Waste") into cellulosic ethanol. 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.

"While our waste-to-ethanol process doesn't need the tax credit to be commercially viable, the farm bill does help to mitigate the financial markets' perceived risks in deploying a first-of-its-kind technology," added Klann. "The tax credit in the farm bill is a key incentive for integrated oil and other financial partners to get involved at the project level of these cellulosic biorefineries."

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.