GreenHunter Biofuels Sustains Minor Damages in Fire at Houston Biodiesel Refinery

GRAPEVINE, Texas--(BUSINESS WIRE)--GREENHUNTER BIOFUELS, LLC, a refiner and producer of EN and ASTM quality biodiesel, and a wholly-owned subsidiary of GreenHunter Energy, Inc. (NYSE Alternext: GRH), sustained minor damages due to a small fire at the GreenHunter BioFuels refinery located in Houston, Texas this weekend. There were no injuries sustained by GreenHunter personnel or firefighters during this incident.

Initial investigations by GreenHunter BioFuels personnel indicate that the fire started at approximately 1:00 PM Central Standard Time on Saturday, February 7^th, and was caused by a mechanical seal failure on a circulation pump associated with a process heating unit. When the seal failed, excessive heat was created which caused the fire. Firefighters from three locations responded within approximately ten minutes to the reports of fire by GreenHunter BioFuels personnel. The firefighters were able to stabilize the situation utilizing a combination of the Company’s fire water system and fire department foam materials and equipment. The fire department was successful at extinguishing the flames within minutes.

Initial damage assessments performed by GreenHunter BioFuels personnel indicate minimal damage with repairs estimated at less than $50,000 and downtime estimated to be approximately three days.

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 associated with a terminaling facility 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.