IRVINE, CA -- (MARKET WIRE) -- 11/29/06 --

BlueFire Ethanol Fuels, Inc.'s (PINKSHEETS: BFRE) CEO and President, Arnold R. Klann, announced today that BlueFire Ethanol was selected by the Department of Energy to advance to the next phase of U.S. Department of Energy (DOE) deliberations on applications for funding authorized under the Energy Policy Act (EPAct) of 2005, Section 932. The next phase consists of an oral presentation to the DOE Merit Review Committee specifying the details of BlueFire's proposed project.

"We are pleased to be chosen to advance in the competition to design, construct, build and operate an integrated biorefinery using BlueFire's proven and patented technology in the conversion of cellulosic waste and other feedstock materials to ethanol," stated Mr. Klann. "The proposed landfill site in California is the perfect location and provides a model that can easily be replicated across multiple regions of the United States to bring ethanol to the fuel markets. The Southern California Biorefinery and other BlueFire facilities like it using urban waste provide for ethanol production plants to be located in the markets with the highest demand for ethanol while extending the life of the landfills upon which they sit." Mr. Klann added that, "we are very pleased to be considered by DOE and welcome this opportunity to go into depth with their Committee about our exciting project."

BlueFire biorefineries provide a path towards meeting President Bush's Executive Order that sets a national goal of replacing more than 75% of our oil imports from the Middle East by 2025 and Governor Schwarzenegger's Executive Order for production of a minimum of 20 percent of California's biofuels within the State by 2010, 40 percent by 2020, and 75 percent by 2050. Ethanol production from cellulose is also responsive to the landmark piece of legislation recently signed by Governor Schwarzenegger to reduce greenhouse gas emissions to the 1990 levels by the year 2020. Ethanol has a positive benefit in greenhouse gas (GHG) emissions reduction. U.S. Department of Energy estimates that on a per gallon basis, corn ethanol reduces GHG emissions by 18% to 29%. However, cellulosic ethanol production technology such as BlueFire's, has an even greater benefit with an 85% reduction in GHG emissions.