Irvine, CA - August 22, 2006 - BlueFire Ethanol, Inc. (PINKSHEETS: BFRE) has identified the initial location in the United States for the commercialization of its cellulose ethanol technology and in cooperation with a publicly traded company, providing comprehensive waste and environmental services in North America, submitted a response to the U.S. Department of Energy's request for applications to design, construct, build and operate an integrated biorefinery using cellulosic feedstock for the production of ethanol. The BlueFire biorefinery is proposed to be located at an existing landfill site in Southern California.

BlueFire's Southern California Biorefinery will process 700 tons of green waste and other cellulosic waste material per day into 24 million gallons of fuel grade ethanol per year with projected revenues of about $55 million and operating income of approximately $25 million per year. The proposed landfill location has been in existence since 1986 accepting approximately 10,000 tons per day of waste from Southern California Counties. Blue Fire's Biorefinery is consistent with BlueFire's 6-year deployment plan, where the Company is estimated to produce1.5 billion gallons of ethanol and approximately $2.7 billion in gross revenues by 2012 with earnings in excess of $1.6 billion.

BlueFire plans to locate their cellulose conversion facilities on landfills throughout North America, initially focusing on the California fuel market. CEO Arnold R Klann states, "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. Our partner in this transaction alone has control of over 200 landfills in North America where BlueFire's technology can be deployed. The Southern California Biorefinery and facilities like it will enable us to be located directly in the markets with the highest demand for ethanol while extending the life of the landfills upon which they sit." 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 California's goal to produce a minimum of 20 percent of its biofuels within California by 2010, and 40 percent by 2020.