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H2Diesel Completes 3 Million Gallon Per Year Pilot Facility
Date:8/19/2007

HOUSTON, Aug. 16 /PRNewswire-FirstCall/ -- H2Diesel Holdings, Inc. ("H2Diesel") (OTC Bulletin Board: HTWO), announced today that it has placed into service its first bio-fuel production plant, a 3 million gallon per year pilot facility, jointly developed with Twin Rivers Technologies L.P. ("Twin Rivers").

The plant, co-located at Twin Rivers' facility in Cincinnati, Ohio, represents H2Diesel's next step in commercializing its new technology for the manufacture of high-quality bio-fuel from a wide variety of vegetable oils and animal fats. Major equipment for the facility has been provided under lease by Sonic Corporation of Stratford, Connecticut.

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 production plant is completed. As previously announced, H2Diesel signed a Letter of Intent with Twin Rivers to negotiate definitive agreements covering the siting, construction, operation and management of a proposed 25 million gallon per year production facility. Under current plans, H2Diesel expects to locate this plant at Twin Rivers' existing facility in Quincy, Massachusetts in 2008.

In May 2007 the Company announced that its proprietary bio-fuel will 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.

H2Diesel President and Chief Executive Officer David A Gillespie said, "We are excited to be taking this next significant step in executing our Business Plan. The pilot plant will allow us to demonstrate commercial scale production capability of our customized bio-fuel. We're especially pleased to be further developing our relationship with Twin Rivers whose technical expertise and assistance has been invaluable in our achieving
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SOURCE H2Diesel Holdings, Inc.

Copyright©2007 PR Newswire.

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