IRVINE, Calif., July 7 /PRNewswire-FirstCall/ -- BlueFire Ethanol Fuels, Inc. (OTC Bulletin Board: BFRE), 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 necessary for Phase I of the application process and that the company has been invited to continue on to Phase II for the financing of their Fulton, MS Project.

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The loan guarantee pursuant to this program would support the construction of BlueFire's commercial (cellulosic) biofuels plant planned in Fulton, MS. Under this program BlueFire has requested $250 million, which would be combined with the previously awarded $88 million dollar grant and other resources to provide sufficient capital for the project's construction and launch of the facility. The Fulton facility will produce 19 million gallons of ethanol per year from woody biomass, mill residue, and other cellulosic waste.

"We are very pleased to see the financing for the Fulton facility moving forward," said Arnold Klann, CEO of BlueFire Ethanol. "It's going to take programs like the DOE loan guarantee to enable first-of-its-kind technologies to be in a position to secure the necessary funding to move forward and help provide cleaner energy sources to the fuel market."

To help facilitate the closing of this financing, BlueFire Ethanol is actively recruiting specialists to close the transaction. "We are currently evaluating all options and seeking strategic personnel to help BlueFire successfully close the financing for the Fulton facility and other future facilities," says Klann.

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 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 near markets with high demand for ethanol. 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.

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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 BlueFire Ethanol Fuels, Inc.