GRAPEVINE, TEXAS, AUGUST 25, 2008 – GREENHUNTER BIOFUELS, LLC, a wholly-owned subsidiary of GreenHunter Energy, Inc. (AMEX: GRH), announced today that over the past week it has achieved over 50% of nameplate production capacity (50% of 105 million gallons-per-year) at the country’s largest biodiesel refinery located in Houston, Texas.  The predominant feedstocks refined to-date have been animal fats (poultry fat and beef talloy), which under the current pricing environment, are expected to provide the Company with meaningful net operating margins.

GreenHunter BioFuels is currently contracting for sale its first 4000 metric ton parcel of B100, or 100% biodiesel, to a purchaser with an anticipated ultimate delivery into the international markets.

Commenting on GreenHunter BioFuels’ recent operational achievements, Bruce Baughman, Senior Vice President of Engineering and Technology, stated, “Successfully achieving 50% of nameplate capacity at such a highly technical refinery is a testimony not only to the quality of this unique asset, but to the outstanding work conducted by our plant personnel during this start-up period. By designing a refinery that has the ability to take a multitude of different feedstocks, GreenHunter has the ability to source and procure the least expensive raw materials possible around the world.  This allows our Company to achieve the greatest possible operating margins within the business today.  We believe the distilled, ‘water-white’ quality performance of the GreenHunter Biofuels facility will contribute to a new quality standard in the global biodiesel marketplace.”

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.

# # #

GreenHunter Energy is focused on the renewable energy sectors of wind, hydro, geothermal, solar, biofuels, and biomass power plants. Our assets consist of leases of real property for future development of wind energy projects located in Montana, New Mexico, Wyoming, California, Texas, and China, the nation’s largest biodiesel refinery located in Houston, Texas, and a cow manure-fired power plant located in El Centro, California. Headquartered in Grapevine, Texas, GreenHunter Energy was formed to be the first publicly traded renewable energy company based in the U.S. that provides to investors a portfolio of diversified assets in the alternative energy sector. Additional information about GreenHunter Energy may be found at

# # #

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