GreenHunter Biodiesel Approved by EPA for On-Road Use in the United States

GRAPEVINE, Texas December 30, 2008: GREENHUNTER BIOFUELS, LLC, a wholly-owned subsidiary of GreenHunter Energy, Inc. (AMEX: GRH), announced today that it has registered and been approved by the Environmental Protection Agency to sell GreenHunter Biodiesel™ to the on-road market in the United States. This approval by the EPA significantly improves GreenHunter Energy’s biodiesel distribution capabilities in the United States, and further augments the Company’s strategy of diversifying risk by distributing its products in multiple markets.

Previously, as a part of its vertical integration strategy in the biodiesel business, GreenHunter announced a distribution strategy that included selling biodiesel in the overseas markets as well as owning distribution assets in the marine market in the Gulf of Mexico. The Company plans to service those markets with biodiesel produced from its 105 million-gallon-per-year (nameplate capacity) biodiesel refinery in Houston, TX, the largest in the country. Gaining access to the on-road market as a necessary part of the registration process, GreenHunter recently elected to acquire emissions and health effects test data originated from a third party industry participant.

Citing continued execution on GreenHunter’s vertical integration strategy for its biodiesel business, Gary C. Evans, Chairman, President, and CEO of GreenHunter Energy, stated, “According to the Energy Information Administration, diesel consumption last year in the U.S. was 4.20 million barrels per day, the highest ever. Even taking into consideration a modest decline in diesel consumption this year, demand for diesel fuel is historically very high. Further, whether it is due to renewable fuel consumption mandates, environmental awareness by consumers, or the drive for energy independence in the United States, the demand for biodiesel will continue to grow at double digit rates. GreenHunter is positioning itself to serve the markets that are demanding a steady supply of the highest quality of biodiesel: marine traffic in the Gulf of Mexico, on-road and off-road traffic in the United States, and overseas markets that may from time-to-time pay a premium for our quality products.”