New Generation Biofuels Announces First Sale to Industrial Heating Customer

LAKE MARY, Fla.--(BUSINESS WIRE)--Renewable fuels provider New Generation Biofuels Holdings, Inc. (NASDAQ:NGBF), today announced that it has signed a sales agreement with Taunton State Hospital in Taunton, MA, to provide renewable biofuel. The hospital will be the first facility to use New Generation Biofuels’ product in its industrial boilers.

“We are excited to have Taunton State Hospital on board,” said New Generation Biofuels CEO & President, David Gillespie. “They are environmental leaders who understand the importance of using a clean, efficient fuel.

“Our biofuel has demonstrated significant overall greenhouse gas (GHG) emission reductions as well as local air pollution reductions including nitrogen oxide and sulfur oxide. In addition, our fuel can be used as a 100 percent fuel switch with no modification to a customer’s equipment.”

In this new contract, New Generation Biofuels will supply the hospital with 180,000 – 220,000 gallons of its renewable biofuel over 12 months.

“Sustainability is a high priority for the hospital,” said Massachusetts Department of Mental Health Director of Engineering and Facilities Management, Ken Lortie. “Working with New Generation Biofuels will give us the opportunity to continue to be at the forefront of technology and contribute to a healthier environment.”

“This is a very important partnership between Taunton State Hospital and New Generations Biofuels,” said Barbara A. Leadholm, M.S., M.B.A., Massachusetts Department of Mental Health Commissioner. “The creativity and innovative thinking of our agency’s facilities staff helps us to not only be energy efficient but also to be mindful of the future of our natural resources.”

The Department of Energy recorded fuel consumption in the commercial and industrial sector combined is in excess of 5.2 billion gallons per year.

In July 2008, Massachusetts Gov. Deval Patrick signed the Clean Energy Biofuels Act, mandating that all diesel and home heating oil sold in the state contain at least 5 percent biofuel by 2013. Ian Bowles, Secretary of the Executive Office of Energy and Environmental Affairs, said, “Our goal of a clean energy economy is becoming a reality with partnerships like this one. I commend Taunton State Hospital and the Department of Mental Health for leading by example in the use of alternative fuels, and I look forward to seeing New Generation Biofuels meeting the state hospital’s fuel needs.”

“Taunton State and Governor Patrick’s Executive Office for Energy and the Environment have been extremely supportive of our efforts in Massachusetts and we look forward and appreciate this opportunity to work closely with them on this arrangement,” said New Generation Biofuels V.P. Regulatory and Legislative Affairs, Connie Lausten.

About New Generation Biofuels Holdings, Inc.

New Generation Biofuels is a renewable fuels provider. We hold an exclusive license for North America, Central America and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels from vegetable oils and animal fats that we market as a new class of biofuel for power generation, heavy equipment, marine use and as a commercial heating fuel. We believe our proprietary biofuel can provide a lower cost, renewable alternative energy source with significantly lower emissions than traditional fuels. Our business model calls for establishing direct sales from manufacturing plants that we may purchase or build and sublicensing our technology to qualified licensees.

About Taunton State Hospital

Taunton State Hospital, a state psychiatric facility operated by the Massachusetts Department of Mental Health, was built in 1851 and operates 13 separate buildings with more than 400,000 active square feet.

Forward Looking Statements

This news release contains forward-looking statements. These forward-looking statements concern our operations, prospects, plans, economic performance and financial condition and are based largely on our current beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. The risks and uncertainties related to our business include all the risks attendant a development stage business in the volatile energy industry, including, without limitation, the risks set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007.