BlueFire Ethanol Fuels, Inc. (OTCBB: BFRE) filed for its permits with Los Angeles County for California's first cellulose to ethanol production facility in June. The location for this facility is near Lancaster, California in northern Los Angeles County.

The production facility will be located adjacent to the Lancaster landfill. The facility will use green & wood waste streams as its feedstock and will produce approximately 3.1 million gallons of cellulosic ethanol per year as well as serve as a future demonstration facility for BlueFire's Bio-Butanol production process. To reduce the environmental footprint to an absolute minimum, the facility will use recycled water and will meet roughly 70% of its total energy needs by utilizing the energy stored in lignin, a process co-product. This plant will be the platform from which system modules will be factory constructed for rapid deployment of all other planned facilities.

Through this facility, BlueFire will provide the California fuel market with its first home-grown fuels from existing cellulosic resources. Thanks to progressive federal legislation, fuel blenders can blend cellulosic ethanol at a 2.5 to 1 credit over traditional ethanol to meet their renewable fuel compliance requirements thereby providing even more incentive for the industry to lead the way in reform. BlueFire estimates that of the 1 billion tons of recoverable waste in the US, over 70 billion gallons of fuel grade ethanol can be produced. For Southern California, the potential exists to convert these waste streams into several hundred million gallons of ethanol fuel per year.