GREENHUNTER ENERGY COMMENCES CONSTRUCTION OF
GLYCERIN DISTILLATION SYSTEM

GRAPEVINE, TEXAS, April 7, 2008 - GreenHunter BioFuels, LLC, a wholly-owned subsidiary of GreenHunter Energy, Inc. (AMEX: GRH), announced today the acquisition of certain major components and the commencement of construction of a 200 million pound per year glycerin distillation system at its Renewable Fuels Campus located in Houston, Texas. 

Installation of the main glycerin distillation tower  was completed over the last sixty days.  The design and initial installation of major equipment components has allowed the commissioning of the entire system to begin.  Commercial operations of the gyclerin distillation system is anticipated during the third quarter of 2008.

Commenting on initiating an additional new business line at the Company’s Renewable Fuels Campus located in Houston, Texas, Mr. Michael K. Studer, President and COO, stated, “The construction of a 200 million pound per year glycerin distillation system adds further diversity to our revenue stream alongside our “first-in-class” 105 million gallon per year biodiesel refinery, our 700,000 barrel bulk liquid terminal assets, and our 45,000 barrel per month methanol distillation system.  GreenHunter’s glycerin distillation system will turn a waste byproduct from our biodiesel refinery into a valuable product that will play an integral role in the overall emerging trend of substituting bio-based chemicals for fossil-fuel based chemicals in both industrial and consumer products.  Glycerin is a building block common to a large number of bio-based chemicals, which opens up a broad new market opportunity for our Company.  Further, the technical set-up of GreenHunter Energy’s 200 million pound per year glycerin distillation system gives us the ability to refine crude glycerin into the highest quality distilled glycerin further augmenting both the Company’s revenue stream with a high-margin product along with increasing the value of the Renewable Fuels Campus. We continue to execute on our strategy of exploiting every possible revenue source available to us as we aquire assets significantly below market in an effort to achieve superior returns on capital deployed.” 

GreenHunter Energy, Inc. is a publicly traded portfolio company of renewable fuels and power businesses.  GreenHunter BioFuels, a wholly-owned subsidiary of GreenHunter Energy, Inc., is in the final stages of completing construction activities at the Company’s Renewable Fuels Campus which includes the country’s largest biodiesel refinery at 105 million gallons per year, a 700,000 barrel bulk liquid storage terminal operation, and a 200 million pound per year glycerin distillation system.  The initial operation of this “state-of-the-art” facility is planned for early April 2008.

GreenHunter Wind Energy, a wholly-owned subsidiary of GreenHunter Energy, Inc., currently has ownership interest in six wind energy projects under various forms of development located in the states of Montana, California, and New Mexico.  GreenHunter BioPower, a wholly-owned subsidiary of GreenHunter Energy, Inc., also owns an 18.5 Mw biomass project located in the Imperial Valley of Southern California.

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.

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For Further Information Contact:

GreenHunter Energy, Inc.
Jack Zedlitz
1048 Texan Trail, Grapevine, TX 76051
Tel: (972) 410-1044