IRVINE, Calif., Oct. 31, 2011 /PRNewswire/ -- BlueFire Renewables, Inc. (OTC BB: BFRE), a company focused on changing the world's transportation fuel paradigm through the production of renewable fuels from non-food cellulosic wastes, has entered into a Memorandum of Understanding ("MOU") with China Huadian Engineering Co. LTD to finance its integrated Power Plant and Biorefinery in Fulton, MS and up to 5 additional plants in the United States.
Under the MOU, Huadian will invest equity by purchasing an interest in the BlueFire Fulton Renewable Energy LLC and, optionally, debt for the Fulton project to complete financing and construction for this cellulosic ethanol facility. Additionally, upon the initial success of the Fulton Project, the agreement intends for Huadian to invest equity and/or provide debt for the development of five (5) additional plants in the United States. The MOU also contemplates the formation of a Development Joint Venture to develop similar projects in China.
"This agreement provides the foundation to finance the Fulton facility and a significant number of additional plants in the US and in China and will enable BlueFire Renewables to create much needed jobs -- starting with about 700 jobs for the construction of the Fulton plant," said Arnold Klann, President & CEO.
China Huadian Engineering Co. LTD is one of China's largest utilities, generating more than 75,000 MW of power in China. Its parent company, China Huadian Corporation has over $51 billion in total assets.
"Having such a strong partner, both technically and financially, backing up BlueFire, is a significant advancement in bringing BlueFire's business plan to fruition," added Klann.
Huadian Engineering Co. LTD.'s collaboration with BlueFire Renewables, Inc. is, in part, a result of the introduction and low carbon development program launched jointly in late 2009 between the National Center for Sustainable Development in Washington, DC and the CDM Fund (supervised by the Ministry of Finance) in Beijing, China.
"The goal of the joint program is to identify important emerging practical technologies with significant potential for broad deployment in China, bring these technologies to commercial scale in the US and apply lessons learned in meeting the energy and low carbon development needs of China, the United States and globally," said Mitchell Stanley, President of NCSD. "Cellulosic ethanol manufactured from biomass and not from food crops is mandatory for China, and BlueFire offers a scalable efficient approach to producing numerous valuable industrial chemicals from domestic sources rather than from imported petroleum."
Once the Memorandum of Understanding terms are finalized in a Definitive Agreement, BlueFire will move toward financial closing allowing the company to accelerate and complete construction of its first commercial cellulosic ethanol facility in Fulton, Mississippi. First phase of construction began in December of 2010, and was completed in June 2011 with the remaining construction dependent on final financing for the complete project. The Fulton project utilizes green and wood wastes available in the region as feedstock for the production of approximately 19 million gallons per year of cellulosic ethanol sold under long-term contract to help fulfill the demand under the Federal Renewable Fuel Standard established under the Energy Independence & Security Act.
About BlueFire Renewables, Inc.
BlueFire Renewables, Inc. was established to deploy a commercially ready, patented and proven Concentrated Acid Hydrolysis Technology Process for the profitable conversion of cellulosic waste materials ("Green Waste") to renewable fuel sources, including Cellulosic Ethanol, Biodiesel, BioJet Fuel, and Drop-in Directs. BlueFire is the only cellulose-to-fuel company worldwide with demonstrated production of Biofuels from urban trash (post-sorted MSW), rice and wheat straws, wood waste and other agricultural residues.
BlueFire received an increase to its Grant totaling $88 million under the American Recovery and Reinvestment Act in December of 2009. BlueFire's biorefineries will be located near markets with high demand for ethanol and will use locally available biomass. This should dramatically reduce delivery costs and increase biofuel supplies, while providing a unique waste processing technology to help America's cities better manage the increasing problem of overflowing landfills. For more information, please visit www.BFREINC.com.
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Statements about BlueFire Renewables expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. BlueFire's actual results could differ materially from expected results. BlueFire undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; BlueFire will appropriately inform the public.
This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). BlueFire Renewables, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: our successful development and deployment of ethanol production facility or facilities, impact of the company's expansion plan, and new business development success, future financial results, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties. The forward-looking statements contained herein involve risks and uncertainties that could cause actual results to differ materially from the expectations contained in any such forward-looking statements. These risks include, but are not limited to: failure to manage operating expenses or integrate new facilities and/or technologies, each of which could have a material impact on our business, our financial results, and the company's stock price. These risks and other factors are detailed in the Company's regular filings with the U.S. Securities and Exchange Commission. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. Forward-looking statements speak only as to the date they are made and BlueFire Renewables, Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
BlueFire Renewables, Inc.
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