H2Diesel Completes 3 Million Gallon Per Year Pilot Biofuel Facility

16 August 2007

H2Diesel Holdings, Inc. has put a 3 million gallon per year pilot biofuel production plant jointly developed with Twin Rivers Technologies L.P. into service.

H2Diesel manufactures its biofuel using an emulsification process that blends a proprietary additive with vegetable oil feedstock (commodity or waste). The fuel is targeted for power generation, heavy equipment, marine use and as a heating fuel.

The facility will be used initially to manufacture fuel for H2Diesel’s application testing program, and then later for early commercial sales until a full-scale (25 million gallon) production plant is completed. In May 2007 the company announced that the biofuel would be used in a test burn at Dynegy, Inc.’s subsidiary, Dynegy Oakland LLC., in the near future. Dynegy and the Company have agreed to negotiate with respect to a mutually agreeable purchase agreement for H2Diesel’s bio-fuel in the event testing is successful.