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GreenHunter Energy Establishes New Biofuels Terminaling Beachhead on Gulf Coast of Florida

Posted on: Wednesday, 22 October 2008, 09:00 CDT

GREENHUNTER BIOFUELS, LLC, a wholly-owned subsidiary of GreenHunter Energy, Inc. (AMEX: GRH), announced today the acquisition of a lease option for twenty-two (22) acres of waterfront acreage in Port Sutton, Florida from a third party. The purpose of the new site location will be initially for the future construction of a biofuels terminaling facility and later, a biodiesel production refinery. The site, owned by The Tampa Port Authority, is strategically located at a deep-water berth in Port Sutton, Florida with access to rail, truck, barge and deep-water ship transportation methods.

GreenHunter BioFuels owns and operates the nation's largest biodiesel refinery located in Houston, Texas with an annual production capacity of 105 million gallons-per-year. The refinery was shut down last month due to a direct hit from Hurricane Ike, but start-up is anticipated sometime over the next several weeks. The terminaling assets located at the Houston refinery are already back in operation with GreenHunter Biofuels refined and in-spec biodiesel sold and delivered to certain third parties this week.

GreenHunter BioFuels acquired the lease option on the twenty-two acre Port Sutton site for approximately $1.0 million in cash and restricted common stock of GreenHunter Energy, Inc. valued at $14.25 per share. Should the Company decide to exercise its option to lease the site during the next nine months, the ground lease would be for a minimum term of forty years and provides for up to four ten year extensions. Additional consideration of approximately $2.0 million in restricted common stock will be due no later than 18 months from closing based upon an average trading price of GRH with a floor price of $14.25 per share and a ceiling price of $25.00 per share.

"Strategically, this asset represents another important step in the execution of our business plan to vertically integrate our biodiesel production and marketing businesses," stated Gary C. Evans, Chairman, President, and CEO of GreenHunter Energy. Evans continued, "Due to the prime location on the Gulf Coast of Florida, we foresee this asset as establishing a foothold in a deep-water port that handles over half of the transportation fuel used in the State of Florida. Over 1.6 billion gallons of diesel fuel was consumed in the state of Florida in 2007. Further, there is a significant market opportunity for this asset to be utilized not only in biodiesel distribution and production, but potentially handling the imports of other biofuels such as foreign manufactured ethanol."

Forward-Looking Statements

Any statements in this press release about future expectations and prospects for GreenHunter Energy and its business and other statements containing the words "believes", "anticipates", "plans", "expects", "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.

GreenHunter Energy is focused on the renewable energy sectors of wind, hydro, geothermal, solar, biofuels, and biomass power plants. Our assets consist of leases of real property for future development of wind energy projects located in Montana, New Mexico, California, Texas, Wyoming and The Peoples Republic of China, the nation's largest biodiesel refinery located in Houston, Texas, biomass-fired power plants located in Brawley, California and Telogia, Florida, and an option to lease acreage in Port Sutton, Florida. Headquartered in Grapevine, Texas, GreenHunter Energy was formed to be the first publicly traded renewable energy company based in the U.S. that provides to investors a portfolio of diversified assets in the alternative energy sector. Additional information about GreenHunter Energy may be found at www.greenhunterenergy.com.

Source: Business Wire

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