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October 2007

GreenHunter Energy begins commercial operation of methanol distillation system

GreenHunter Energy, Inc. and its wholly-owned subsidiary, GreenHunter BioFuels, Inc., located in Houston, Texas have begun commercial operations with the start-up of a 1,500 barrel per day methanol distillation system. The methanol distillation process was permitted with the Texas Commission of Environmental Quality (TCEQ) earlier this year and was designed to distill off-spec methanol to a purity of 99.85% or better.

The methanol distillation system is a key element of GreenHunter’s 105 million gallon per year biodiesel refinery, the country’s largest, slated for initial operations during the first quarter of 2008. The methanol distillation unit has enough capacity to distill recovered methanol from GreenHunter’s biodiesel refinery as well as significant amounts of off-spec, third-party methanol acquired from other industry operators. This may include off-spec methanol containing water, saltwater (chlorides), residues from processing such as vegetable and animal fats/oil compounds and residues from biodiesel processing such as glycerin, mono/diglycerides and methyl esters.