GREENHUNTER ENERGY SUBSIDIARY ANNOUNCES
ACQUISITION OF BIOMASS POWER PLANT IN FLORIDA

GRAPEVINE, Texas, SEPTEMBER 3, 2008 – GREENHUNTER RENEWABLE POWER, LLC, a wholly-owned subsidiary of GreenHunter Energy, Inc. (AMEX:GRH) announced today the closing of an acquisition of an existing 14 MW wood waste-fired biomass power plant located in Telogia, Florida. The biomass power plant, Telogia Power, LLC, and an associated entity, Telogia Power Unit #2, LLC, were acquired from CQ BioPower Producers, a subsidiary of CQ, Inc., a privately-held power plant operator based out of Blairsville, Pennsylvania.

The acquisition of Telogia Power, LLC, which includes approximately 125 acres of associated land, is a continuation of our power group’s multi-year strategy to increase the capacity of the biomass power plants within its existing portfolio. GreenHunter Renewable Power, LLC will acquire the 14 MW plant, which was originally constructed in 1986 by General Electric and remained in operation with a 90% capacity factor until early 2008, for approximately $2.5 million in cash. The Company has budgeted an additional $8.8 million for the renovation and improvement of the biomass power plant, which is not currently in operation. The Company’s goal is to have the project back into commercial operation by the first quarter of 2009. GreenHunter is currently negotiating with several interested regional co-ops and utilities for a new long-term power purchase agreement. Additionally, GreenHunter has recently negotiated with a third party to provide up to 40% of the power plant’s wood waste feedstock requirement. The remainder of the necessary fuel will be acquired from a variety of local wood waste sources.

Commenting on the acquisition of the 14 MW wood waste-fired biomass power plant located in Florida, GreenHunter Renewable Power President, Stephen A. Wiley stated, “We are excited to acquire an existing asset in the Florida power market, as it has historically been a very difficult region of the country to penetrate within the renewable space. Further, we believe that in the long-term, the Florida power market will seek highly dependable renewable power resources such as our Telogia power plant as the demand for renewable power in the state continues to further expand. Dramatic increases in the cost of fuel have required one of the major utilities in Florida to propose an increase in the pass-through fuel charge that would raise residential electric bills by approximately 16%.”

In response, Gary C. Evans, Chairman, President and CEO of GreenHunter Energy stated, “This biomass power generation asset fits extremely well in our strategy of owning and operating a diverse portfolio of renewable power and fuels assets so as to aggregate within one entity multiple types of revenue streams. Our Board and management team will continue to execute on our strategy of employing our capital in the most efficient manner by acquiring existing assets significantly below market prices so as to maximize the ultimate return to our shareholders.”

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, California, Texas, wind development projects in Wyoming and China that we believe will be acquired in the future, the nation’s largest biodiesel refinery located in Houston, Texas, and a cow manure-fired power plant located in Brawley, 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 www.greenhunterenergy.com.

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