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September 2007

GreenHunter BioFuels receives permits for biodiesel refinery

GreenHunter Energy, Inc. announced that its wholly-owned subsidiary, GreenHunter BioFuels, Inc., located in Houston, Texas has successfully acquired Air Emission Permits from Texas Commission of Environmental Quality (TCEQ). These permits open the way for construction of a 105 million gallon per year (mgy) biodiesel facility including a separate but related methanol distillation facility.

GreenHunter BioFuels is in the process of converting the former Channel Refining Corporation waste oil/chemical refinery located near Galena Park at the Houston Ship Channel, to production of biodiesel and distillation of off-spec methanol streams from its own biodiesel production mix. Additionally, off-spec methanol acquired from third parties will be refined at this facility.

GreenHunter BioFuels has obtained the necessary permit for a Biodiesel Production Unit that will allow up to 105 mgy of biodiesel production from variable feedstocks located either domestically or internationally, including vegetable oils (soy bean, palm oil and jatropha oil) and/or animal/poultry fats.

Additionally, a Methanol Distillation Unit has now been permitted that will allow distillation of up to 1,500 barrels per day of wet methanol. The methanol distillation unit will serve GreenHunter BioFuel’s internal needs for methanol necessary for its biodiesel production unit at the same location.

Conversion of the existing refinery assets will allow for an extremely fast entrance into the biodiesel markets. In addition, the distilled methyl esters (biodiesel) will have a highly reliable, water-white quality that is most desirable in the biodiesel markets. The 105 mgy biodiesel unit is currently on track to be in production by March of 2008, approximately 60% to 70% faster than a new “greenfield facility” and at a fraction of the cost. Once completed, it is expected to be one of the world’s largest, multi-feedstock biodiesel facilities.