Biofuels Power Agrees to Purchase Decommissioned H.O. Clarke Electric Generating Station in Central Houston

THE WOODLANDS, Texas--(BUSINESS WIRE)--Biofuels Power Corporation (OTCBB:BFLS) announced today that it has agreed to purchase the site, infrastructure and equipment of the decommissioned H.O. Clarke Electric Generating Station in central Houston. The purchase includes 79 acres of land at the intersection of Main St. and Hiram Clarke Road, together with all infrastructure, equipment, buildings and other improvements. The terms of the transaction are undisclosed pending the closing which is anticipated before year-end.

“We already have two plants in nearby Montgomery County that run on 100% biodiesel and generate 15 MW of green electricity that we sell to ERCOT and Entergy. We believe our planned Houston Clean Energy Park will become a model for clean industrial redevelopment nationwide”

The H.O. Clarke Generating Station was built by Reliant Power in the 1940s and provided a generating capacity of 288 MW before the steam units were decommissioned in the mid-‘80s and replaced by natural gas fired turbines with a combined capacity of 78 MW. The gas-fired turbines were removed in 2004 and the station was decommissioned. The company is presently seeking proposals from salvage buyers for non-essential buildings and other infrastructure located on the site.

The operational infrastructure on the H.O. Clarke site includes 65,000 barrels of above ground storage tanks and a high-pressure natural gas pipeline that is connected to the distribution system. The H.O. Clarke property is adjacent to a 500 MW switchyard operated by Centerpoint and has ready access to the ERCOT grid through a 12 kV transmission line.

“Our long-term goal is to redevelop the H.O. Clarke site as a clean energy industrial park that will use biofuels, biomass, natural gas, biogas and solar energy to provide green electricity and combined heat, power and refrigeration services for industrial and commercial tenants that need ready access to central Houston, the Houston Ship Channel and the Interstate Highway system,” said Fred O’Connor, President and CEO of Biofuels Power.

“While our planning is still in the preliminary stages, we believe the location and infrastructure of the H.O. Clarke facility give us a unique opportunity for large-scale industrial redevelopment in a world-class Houston location,” Mr. O’Connor continued. “We already have two plants in nearby Montgomery County that run on 100% biodiesel and generate 15 MW of green electricity that we sell to ERCOT and Entergy. We believe our planned Houston Clean Energy Park will become a model for clean industrial redevelopment nationwide,” Mr. O’Connor concluded.

About Biofuels Power Corporation

We are pioneering the use of biodiesel, renewable diesel and alternative fuels to power distributed electrical power generating plants that are located in close proximity to the end-users they serve. Our assets include a 5 MW plant in Oak Ridge North Texas that uses three reciprocating diesel generators to make green electricity that we sell to into the ERCOT grid and a 10 MW plant in Montgomery County, Texas that uses a GE Frame 5 turbine to make green electricity that we sell to Entergy. Headquartered in The Woodlands, Texas, Biofuels Power Corporation was the first company in the country to produce and sell green electricity generated from biodiesel and renewable diesel fuels. Additional information may be found at www.biofuelspower.com.

Forward-Looking Statements

Any statements in this press release about future expectations and prospects for Biofuels Power Corporation 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. Biofuels Power Corporation undertakes no obligation to update these forward-looking statements in the future.