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New Generation Biofuels Completes Construction of Baltimore Facility
Date:2/18/2009

tes its strategy from other alternative fuel suppliers by targeting large stationary users such as the power generation industry, commercial and industrial processes and space heating, as well as marine transportation. Within the power generation industry, the Company has identified more than 100 power plants that run during peak hours, are potentially constrained by emissions limitations and may be eligible for renewable energy credits. So far, 29 states and the District of Columbia have established Renewable Portfolio Standards (RPS) requiring the use of renewable sources to generate electricity. Of these, at least 16 are currently in effect, or go into effect in 2009. For example, by 2010 retail energy companies in California are required to obtain 20% of their energy from renewable sources. NGB estimates the current market opportunity in this segment at 800 million gallons when looking at replacing the currently utilized #2 distillate fuel oil and kerosene.

The commercial and industrial heating, heavy equipment and marine transportation markets in turn, may represent a combined 7.3 billion gallon market opportunity for New Generation Biofuels. According to the United States Department of Energy, commercial industrial processes, space heating, and off-road equipment currently use up to 5.2 billion gallons of heating oil per year that potentially could be replaced with biofuels. Beyond economic advantages, non-energy intensive industries, such as the pharmaceutical industry, public buildings, schools and hospitals, can use their potentially reduced carbon footprint to enhance their image. According to DOE, marine applications potentially provide a 2.1 billion gallon opportunity and the Company believes that demand for biofuel is expected to be driven by increased restrictions on the emissions of cruise ships, ferries, tugboats and other vessels.

About New Generation Biofuels, Holdings, Inc.

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