GRAPEVINE, Texas, Sept. 5 /PRNewswire/ -- GreenHunter Energy, Inc.
 announced today that its wholly-owned subsidiary, GreenHunter BioFuels,
 Inc., located in Houston, Texas has begun commercial operations with the
 start-up of a 1,500 barrel per day methanol distillation system; commercial
 production should commence on or before September 10, 2007. The methanol
 distillation process was permitted with the TCEQ (Texas Commission of
 Environmental Quality) earlier this year and was designed to distill
 off-spec methanol to a purity of 99.85% or better.
     The methanol distillation system is a key element of GreenHunter's 105
 million gallon per year biodiesel refinery, the country's largest, slated
 for initial operations during the first quarter of 2008. The methanol
 distillation unit has enough capacity to distill recovered methanol from
 GreenHunter's biodiesel refinery as well as significant amounts of
 off-spec, third-party methanol acquired from other industry operators. This
 may include off-spec methanol containing water, saltwater (chlorides),
 residues from processing such as vegetable and animal fats/oil compounds
 and residues from biodiesel processing such as glycerin, mono/diglycerides
 and methyl esters.
     Commenting on this milestone, Mr. Gary C. Evans, Chairman and CEO of
 GreenHunter, stated, "With the start-up of our commercial operations, third
 party sources along the Gulf Coast will find a unique alliance opportunity
 with GreenHunter. As a recipient of off-spec methanol, suppliers of
 methanol feedstock will have an outlet that will be far superior to
 disposal. We can receive product at our Houston Ship Channel location, by
 truck, rail or barge and can ship the finished product via any of these
 transportation methods. Our biodiesel refinery will only utilize
 approximately 20% of the available capacity of this new methanol
 distillation system, therefore, making over 1,000 barrels per day of
 distilled methanol available for sale to commercial operators wanting a
 reliable source of 99.85% methanol."
     The methanol distillation unit was completely refurbished, permitted,
 and in commercial production less than six months after its acquisition.
 The use of existing assets and infrastructure allowed for a speedy
 conversion at a fraction of the cost of a new installation.
     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.
 
 

SOURCE GreenHunter Energy, Inc.