IRVINE, CA -- (MARKET WIRE) -- July 13, 2006 -- BlueFire Ethanol, Inc. (PINKSHEETS: BFRE) announces that Arkenol on its behalf has finalized a Principle Agreement for the process design development and further collaboration with JGC Corporation for the first cellulosic bio-ethanol production project located in North America. JGC will provide the design analysis and engineering, while BlueFire will provide the technology, development and marketing expertise.

In a recent JGC Corporation press release (June 20, 2006) they state, "Biomass-ethanol as an alternative fuel for automobiles is now attracting considerable interest in the United States. This follows a sudden steep rise in the price of crude oil and the Government's policy of reducing the nation's dependence on imported energy resources. Furthermore, the utilization of biomass-ethanol as a resource responds to the strong public demand to cut CO2 emissions in the U.S. Since the early 1990s, close attention has been given to production technologies for the conversion to fuel of woody residue biomass resources obtained from agricultural wastes (cores, stalks, etc.) and waste lumber." During this period, JGC entered into a technology licensing agreement with Arkenol (the licensor of BlueFire's technology) as a licensee of the world-wide-patented cellulosic ethanol production technology. Subsequently, JGC continued to conduct research and testing directed at implementing BlueFire's licensed technology and enhancing its performance with the integration of JGC-developed fermentation and distillation technology.

For the past four years JGC has utilized the BlueFire licensed technology to convert cellulose-based waste into ethanol at their plant in Izumi, Japan. JGC states, "In 2002, [we were] awarded a contract by the New Energy and Industrial Technology Development Organization (NEDO) of the Japanese Government for the implementation and commercialization of cellulosic ethanol production technology, including installation, operation and testing, of a pilot bio-ethanol production plant at NEDO's alcohol production research site (in the city of Izumi, Kagoshima Prefecture) based on Arkenol's technology." Arnold R. Klann, CEO of BlueFire Ethanol, Inc. states, "The Izumi facility enabled us to verify Arkenol's technology as being commercially viable via an unrelated third party, which now sets the stage for our rollout of this technology in the United States, as we plan to do as either company owned facilities, or as joint ventures with strategic partners."

JGC issued a statement saying, "The present cellulosic bio-ethanol-based project calls for processing woody wastes and agricultural wastes (cellulosic biomass) to be the feedstock for bio-ethanol production in the United States, to supplement foodstuff biomass materials such as corn and sugar cane used as the feedstock for conventional bio-ethanol production. With the realization of the project, JGC together with BlueFire Ethanol will be optimally positioned in the global, burgeoning renewable fuels market for the commercialization of cellulosic biomass-based ethanol production technologies. Currently, JGC is developing bio-ethanol production projects in Southeast Asia, including the Philippines, Thailand, and Indonesia. The company is committed to pursuing business opportunities leading to technological advancement and project investment in biomass energy to meet societal and environmental needs."

About JGC:

Since the company's establishment in 1928, JGC engineering has left its mark on numerous projects in the field of hydrocarbons the world over. Many have been major, state-sponsored projects carried out in Asia, Africa, South America, Eastern Europe and the Middle East. The company's highly advanced engineering technologies and excellent project management has led repeatedly to the successful completion of these large-scale projects. In short, as a leading global engineering company, JGC has the accumulated experience gained from over 20,000 projects performed in approximately 70 countries. It therefore comes as no surprise that JGC is recognized internationally as a first-class engineering company with superior technological capabilities.

About us:

BlueFire Ethanol, Inc. was established to deploy the commercially ready, patented, and proven Arkenol Technology Process for the profitable conversion of cellulosic ("Green Waste") waste materials to ethanol, a viable alternative to gasoline. BlueFire's use of the Arkenol 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.