BlueFire Ethanol Receives $3.8 Million Reimbursement From Department of Energy

November 5, 2009

Revised DOE Contract Allows For Reimbursement That Will Further Aide Plant Development

IRVINE, Calif., Nov. 5 /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, has received a $3.8 million reimbursement from the Department of Energy to be used for pre-construction activities for its second planned biorefinery, which will be located in Fulton, Mississippi.

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BlueFire is currently receiving funding under the $40 million DOE grant it was awarded in 2007 for the development of the Mississippi plant. The $3.8 million reimbursement was issued to cover costs spent on the basic engineering design that is directly correlated to the development of BlueFire's Fulton, Miss. plant.

"This reimbursement provides additional cash flow for pre-construction activities including permitting and basic preliminary engineering for our Fulton, Mississippi plant," said Arnold Klann, chief executive officer at BlueFire Ethanol. "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."

BlueFire Ethanol'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.

The Fulton, Miss. project, BlueFire's second planned commercial cellulosic ethanol plant, 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 approximately 18 million gallons of ethanol per year.

BlueFire has also completed a 20-month licensing process and is currently awaiting the final financing needed to break ground on its shovel-ready, fully permitted ethanol biorefinery in Lancaster, CA. The Lancaster facility will use post-sorted cellulosic wastes diverted from Southern California's landfills to produce approximately 3.9 million gallons of fuel-grade ethanol per year.

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.

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.