BlueFire Ethanol Closes $15.5 Million in Financing

IRVINE, Calif.--(Business Wire)--BlueFire Ethanol Fuels, Inc. (OTC BB: BFRE) closed $15 million in
financing for corporate overhead and continued project development
with Quercus, an environmentally focused trust.

On December 14, 2007, BlueFire entered into a Securities Purchase
Agreement whereby Quercus Trust acquired shares of common stock and
warrants for total proceeds of $15,000,000. The complete terms of the
agreement are detailed in the Form 8-K filed with the Securities and
Exchange Commission on December 17, 2007. The financing enabled
BlueFire to convert its outstanding senior secured convertible notes
held by Aurarian Capital Partners and Aurarian Capital Ltd into common
stock.

"BlueFire is very excited to have the Quercus Trust as a strategic
investor in our company and we applaud the Quercus Trust's continued
commitment to invest in the companies that provide environmentally
sound solutions for today's global issues," said Arnold Klann,
President and Chief Executive Officer of BlueFire Ethanol. "This
investment will provide us with the capital liquidity that we need to
continue to execute our business plan and will help bring America one
step closer to becoming 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.

"We have made significant progress in our efforts to build the
first cellulose-to-ethanol facility in California. This facility will
be a catalyst for cellulosic fuel production throughout our nation and
will provide the first building block in generating the 16 billion
gallons of cellulosic ethanol per year that were outlined in the
recently passed Energy Bill," stated Klann.

If you would like to receive regular updates on BlueFire Ethanol,
please click on the following link:
http://www.b2i.us/irpass.asp?BzID=1437&to=ea&s=0.

About BlueFire Ethanol Fuels, Inc.:

BlueFire Ethanol Fuels, Inc. is established to deploy the
commercially ready, patented, and proven Concentrated Acid Hydrolysis
Process for the profitable conversion of cellulosic ("Green Waste")
waste materials to ethanol, a viable alternative to gasoline.
BlueFire's use of the Process Technology positions it as 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. Our goal is to develop and
operate high-value carbohydrate-based transportation fuel production
facilities worldwide. These "biorefineries" will convert widely
available, inexpensive, organic materials such as agricultural
residues, high-content biomass crops, wood residues, and cellulose
from MSW into ethanol. BlueFire intends to build a multinational
company that leads the world in producing biobased transportation
fuels. Its business will encompass development activities leading to
the construction and long-term operation of production facilities
while maintaining technological advantage and ownership of the process
technology and all its improvements. Ethanol will be produced from
biorefinery facilities opportunistically constructed on or near
landfills, waste collection and waste separation sites. Each facility
will deploy the proprietary technology, which uses all cellulosic
waste materials traditionally disposed of in landfills as feedstock.
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.

Media:
Avalanche Strategic Communications
Laura Finlayson, 201-488-0049
laura@avalanchepr.com
One University Plaza, Suite 407
Hackensack, New Jersey 07601
or
Inquiries/Investor Relations:
BlueFire Ethanol Fuels, Inc.
Rigel Stone, 949-588-3767 x 404
rstone@bluefireethanol.com

Copyright Business Wire 2008