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H2Diesel Holdings Announces Test Burn Agreement With Mirant Corp.
Date:12/19/2007

HOUSTON, Dec. 19 /PRNewswire-FirstCall/ -- H2Diesel Holdings, Inc. (OTC Bulletin Board: HTWO) announced today that it has entered into a Test Burn Agreement with Mirant Energy Trading LLC, a subsidiary of Mirant Corp. (NYSE: MIR) to demonstrate its proprietary biofuel technology in utility scale power generation applications.

The Agreement calls for H2Diesel to supply its biofuel for a gas turbine test program that will be performed in early 2008 at Mirant's Morgantown Generating Station, which consumed approximately 5 million gallons of distillate fuel oil in 2006. The test program will include the evaluation of both technical and environmental performance characteristics of H2Diesel's biofuel. If testing is successful, the parties intend to negotiate a mutually agreeable purchase agreement for H2Diesel's biofuel technology.

"We're excited to be teaming with Mirant, a recognized leader in reliable, affordable, and environmentally responsible energy supply to build on our recent successes as we continue to commercialize our proprietary renewable biofuel," said David A. Gillespie, president and CEO of H2Diesel. "We believe our fuel can be used in industrial and power generation applications to reduce our nation's dependence on foreign oil, and to reduce the emissions of greenhouse gasses and other pollutants. We look forward to successfully completing the testing program and to Mirant becoming one of our first large- scale electric generation customers."

"A successful test of H2Diesel's biofuel at Morgantown represents a significant opportunity for Mirant, our customers, and stakeholders," said John O'Neal, Mirant's senior vice president and chief commercial officer. "Use of renewable fuels at Morgantown, one of our lar
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SOURCE H2Diesel Holdings, Inc.
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