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.

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.