Green Earth Fuels Announces the Initiation of Construction on its First Biodiesel Facility on the Houston Ship Channel

Houston, TX - Green Earth Fuels, LLC ("Green Earth Fuels") today announced the initiation of construction of its first biodiesel facility to be located on the Houston Ship Channel at Kinder Morgan's Galena Park liquid terminal facility. The Green Earth Fuels facility will have the capacity to produce 43 million gallons of biodiesel per year and is expected to be in production in July, 2007. This is the first of two facilities Green Earth Fuels will construct this year. The second facility will begin construction in the fourth quarter and will be located in New Orleans, Louisiana.

The Energy Information Agency (EIA) ranks Texas as number one in U.S. consumption of distillate fuel and the state accounts for 20 percent of U.S. crude oil production. Houston is at the forefront of this petroleum-leading state with its Port of Houston complex in the Houston Ship Channel.

"By locating on the Houston Ship Channel within an existing terminal, this site offers maximum flexibility for feedstocks and finished products, says Gregory L. Bafalis, CEO of Green Earth Fuels. "A key factor to success in the growing biodiesel market will be the ability to consistently integrate quality controlled product into the existing petroleum distribution infrastructure. The co-location of our production facility with the Kinder Morgan terminal places us directly within the petroleum supply chain, creating a seamless integration with customers' existing distillate operations."

Together, the Houston and New Orleans facilities are each expected to create 28 jobs as well as an additional 60 indirect jobs in service of the plant. Construction-related jobs are expected to range from approximately 50 people, to a peak of 150.

This announcement follows on a previous release by Riverstone Holdings, LLC ("Riverstone"), The Carlyle Group, and Green Earth Fuels, LLC announcing the financing of Green Earth Fuels through a controlling investment by the Carlyle/Riverstone Renewable Energy Infrastructure Fund I, L.P. ("CRREIF").

About Green Earth Fuels

Headquartered in Houston, Texas, Green Earth Fuels, LLC is focused on the development of petroleum-friendly biodiesel infrastructure that provides the requisite scale, product quality and streamlined logistics necessary to reliably supply leading energy industry participants. The company is led by a management team with over 50 years of collective experience in developing, financing, building and operating energy production facilities throughout the world. Green Earth Fuels biodiesel facilities will be embedded within the existing petroleum complex and will employ the rigorous quality standards and processes necessary to conform to both ASTM-D6751 and BQ9000 biodiesel specifications. For more information see, www.greenearthfuelsllc.com/.