BlueFire Ethanol (PINKSHEETS: BFRE) announces commencement of activities on its second Ethanol Production Facility. Located in Northern Los Angeles County, near Lancaster California, BlueFire has secured a site and commenced both engineering and permitting activities for a modular biorefinery. The initial size will be based upon a roughly 3 million gallon per year module which appears to be an optimum size for multiple modular plants. This commences BlueFire's efforts to optimize, for future roll out, a design that incorporates the advantages of prefabrication that will permit rapid, cost-effective construction of future plants.

One key feature of this plant will be its ability to produce other higher value fuel components. The plant design will be flexible to assess, and incorporate, system designs and component arrangements to facilitate commercialization of additional end products such as bio-butanol, which has been previously produced at Arkenol's pilot plant. Arnold Klann stated, "After numerous requests from both end users and partners alike BlueFire has designed this facility to also produce value added chemicals such as Ethyl levinate and Ethyl lactate as a diesel fuel additive which has been shown to reduce particulate emissions by 90%.

"The Lancaster facility will bring a new dimension of thinking to BlueFire, one which combines cost-effective modules for rapid deployment to meet the burgeoning demand for renewable fuels". It is anticipated that the facility will commence construction later this year after completion of all permitting efforts. "Right sizing our designs will permit BlueFire to maximize its deployment opportunities by deploying a design that can cost-effectively seize market opportunities for landfill sites of virtually any size," said CEO Arnold Klann.