New Benefuel Refinery Targets Improvements in Biodiesel Production, Technology Processes Animal Fats, Uses No Water, Produces Pure Glycerin

October 10, 2007

Chicago,IL and Seymour, IN--Benefuel, Inc., a new-generation biodiesel refining and distribution company, announced Oct. 10 that it will build the world’s first industrial- scale biodiesel refinery leveraging a novel solid catalyst that converts low-grade fats and vegetable oils into biodiesel.

The pilot plant, planned to be located in Seymour, IN, eliminates the need for water in the refining process and produces a market-ready glycerin by-product.

Benefuel, a Chicago-based manufacturer of the industry’s most advanced biodiesel refinery, in partnership with Seymour Biofuels LLC, based in Indiana, plans to construct a 10-million gallon biodiesel plant that uses Benefuel’s solid, acid catalyst.

The catalyst, developed in collaboration with leading chemical engineers from India’s prestigious National Chemical Laboratory, can turn virtually any vegetable oil or high free fatty acid (FFA) animal fat directly into biodiesel without the need for costly pre- processing.

"This is a great leap forward for the entire biodiesel industry, and an exciting development for Indiana’s farmers and transportation companies," said Rob Tripp, CEO of Benefuel, Inc.

"Biodiesel refiners have been looking for a breakthrough that reduces feedstock costs, addresses waste glycerin disposal, eliminates caustics in the processing stream and reduces the environmental impact typically associated with producing biodiesel," Tripp continued. "The economic benefits of a solid catalyst refinery far exceed those of conventional refineries, dramatically increasing operating margins to create a major shift in how the world produces biodiesel."

Thanks to the unique nature of the Benefuel catalyst, the operators of the new Seymour plant will realize significant production savings through the purchase of the lowest-cost feedstock.

As an added economic benefit, the glycerin by-product of the Seymour refinery will have an initial purity of more than 98%, making it market-ready for use in other applications.

"You couldn’t ask for a better location for this facility than right here in the heart of soy country," said James Galyen, a partner in Seymour Biofuels LLC.

"The flexibility and simplicity of the Benefuel refinery will allow us to process a much broader range of feedstock in a much more profitable and environmentally friendly way," Galyen said. "The valuable glycerin commodity and use of local feedstock will make this plant a model for distributed fuel production. This brings our energy supply back home."

Officials with both companies expect to begin production later in 2008.

For more information, call 415-977-1917.

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