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October 20, 2004
New Alamosa, CO Facility to Offer Nationwide Access to Biodiesel Blends

Automated process and distribution hub ensures best cost, performance and quality

Alamosa, CO, October 20, 2004 – Blue Sun Biodiesel ® announces the nation's first high-volume commercial biodiesel blending terminal and integrated biodiesel processing plant. High-performance biodiesel blends will be available from the terminal beginning this November.

USDA officials will announce the agency's $500,000 grant award to Blue Sun for the construction of the production plant at a grand opening event in Alamosa October 21. The production plant is scheduled for completion in May 2005.

The new Blue Sun Biodiesel processor and terminal increases availability and reduces the cost of high-performance biodiesel fuel made from virgin vegetable oil. To date, quality concerns have slowed acceptance of biodiesel blends such as B20, an EPA-approved alternative fuel consisting of 20% biodiesel and 80% diesel. These concerns have been a result of inconsistent product quality and blending procedures in the industry that have previously led to hesitancy on the part of diesel engine manufactures, automakers, and fleet managers. The new Blue Sun terminal and production facility will provide ample supplies of the Blue Sun Biodiesel fuel to the rapidly growing U.S. market.

Gigi Dennis, Colorado state director for USDA Rural Development, said, "Blue Sun's processing facility and distribution terminal are critical-path developments in the ongoing national effort to increase agricultural income and reduce America's dependence on foreign oil." Blue Sun is the first Colorado company to receive the USDA's prestigious Renewable Energy Systems grant. The production facility and blending terminal both will be computer-automated and will use the most advanced blending technology available to create Blue Sun B20. Strategically located in Alamosa on the Great Western Railway, the blending terminal will improve accessibility to Blue Sun B20 for fuel distributors and their customers throughout the U.S. Blue Sun B20 increases horsepower and fuel mileage, while reducing emissions, engine wear and maintenance costs.

Blue Sun President and CEO Jeff Probst said, "By co-locating these critical biodiesel components with crop production in the San Luis Valley, Blue Sun Biodiesel can provide high-quality and cost-competitive fuel to our customers throughout the country." The San Luis Valley of Colorado is ideal for canola crop production and area farmers will supply the processing facility. According to Dan Mortensen, President of Alta Fuels in Alamosa, "Blue Sun's operation helps distributors overcome the obstacles that currently limit the growth of the biodiesel industry."

Please visit www.gobluesun.com for details.

Jeff Probst, President and CEO
Blue Sun Biodiesel
Tel: 970-221-0500
Fax: 970-221-4004
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