BlueFire Ethanol Loan Guarantee Application for the Lancaster Project Advances to Final Phase

BlueFire Ethanol Loan Guarantee Application for the Lancaster Project Advances
to Final Phase
Company Meets the Department of Energy Part One Application Requirements and
is Invited to Continue in Part Two of the Process

IRVINE, Calif., Nov. 12 /PRNewswire-FirstCall/ -- BlueFire Ethanol Fuels, Inc.
(OTC Bulletin Board: BFRE.OB - News), 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 of Part One of the
application process and that they have been invited to continue onto Part Two
for the financing of their Lancaster Project.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090511/BLUEFIRELOGO )

The loan guarantee pursuant to this program would support the construction of
BlueFire's "shovel-ready" commercial (cellulosic) biofuels plant planned for
Lancaster, CA. Under this program BlueFire has requested $56 million, which
would be combined with other sources to provide sufficient capital for the
project's construction and launch. BlueFire has completed the permitting
process and is poised to break ground upon completion of the financing and
Loan Guarantee agreements. The Lancaster facility is designed to convert
post-sorted cellulosic waste materials diverted from southern California's
landfills to produce approximately 3.9 million gallons of fuel-grade ethanol
per year.

"We are honored and applaud the Obama administration and the Department of
Energy for their continued support of the biofuels industry. We are very
optimistic that the DOE will consider the enormous benefits of BlueFire
Ethanol's technology during Part Two of this selection process," said Arnold
Klann, CEO of BlueFire Ethanol. "It's programs like the DOE loan guarantee
that enable first-of-its-kind technologies to be in a position to secure the
necessary funding to move forward and help provide much-needed energy
alternatives to petroleum."

BlueFire Ethanol recently announced its second commercial cellulosic ethanol
plant location in Fulton, Mississippi. The project 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 nearly 18 million gallons of
ethanol per year. BlueFire expects to announce a third planned project
facility in the near future.

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 companies awarded funding from the U.S. Department of
Energy under the Energy Policy Act of 2005 to construct cellulosic biorefinery
production facilities. BlueFire's biorefineries will be located near markets
with high demand for ethanol and will use locally available biomass. 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.

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.

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.

Company Contact: Richard Klann of BlueFire Ethanol Fuels, Inc.,
+1-949-588-3767, ext. 411, rgklann@bluefireethanol.com, or Media Contact:
Laura Finlayson of Beckerman Public Relations, +1-201-465-8007,
lfinlayson@beckermanpr.com, or Investor Relations: Frank Benedetto of Mirador
Consulting, Inc., +1-877-647-2367