Nova Biosource Fuels Announces Achievement of 1 Million Gallon Production Milestone at Its Seneca, Illinois Biodiesel Refinery

Cleanup and Repairs Continue at Scott Petroleum Facility 


HOUSTON, May 6  /PRNewswire-FirstCall/ -- Nova Biosource Fuels, Inc. , a refiner and marketer of ASTM quality biodiesel, announced today that in the first 25 days of start-up production, its biodiesel refinery in Seneca, Illinois produced more than 1 million gallons of ASTM standard biodiesel fuel from the first 20 million gallon per year train.

"We are pleased with the progress at the Seneca, Illinois refinery," said Kenneth T. Hern, Chairman and CEO of Nova.  "Plant commissioning is proceeding as planned.  Train One has operated at nameplate capacity and has exceeded all our performance objectives for yield, throughput and quality.  The refinery has successfully demonstrated conversion of feedstocks with free fatty acid levels above 6%.  To date, we have  produced more than 1.25 million gallons, and we expect to begin working on Train Two by the end of the month and Train Three will follow shortly thereafter."

The Seneca refinery layout incorporates three process trains, each rated at 20 million gallons per year.  "Our startup and commissioning plan has been developed using our experience gained during the startup of the two similar 20 million gallons per year refineries we built for third parties in Wisconsin and Mississippi," said Mr. Hern. "Our plan is to commission the Seneca refinery one train at a time, spaced at 45 to 60 day intervals to smoothly integrate equipment shakedown, staff training, logistical support, markets and overall refinery operations to ramp up production at a methodical and structured pace.  We could not be more pleased with the progress on the first train and are looking forward with great anticipation to the startup of the remaining trains."

When all three process trains are running at capacity, the Seneca refinery is rated to generate 60 million gallons per year of biodiesel from locally generated, low-cost feedstocks, including rendered animal fats and oils and recycled vegetable and animal-based greases.  Mr. Hern also said, "Nova makes every effort to run its refineries on low cost feedstocks that are not acceptable for human consumption.  Our objective is to produce biodiesel without using food for fuel if at all economically possible."

Nova also announced that the repair work on the Scott Petroleum Corporation refinery is proceeding as planned as a result of the previously announced pump failure and resulting damage.  One of the hot oil pumps suffered a seal failure during operation, and the resulting hot oil spray briefly ignited until the pump could be shut down and response measures implemented.  The collateral damage was minimal and confined to the hot oil skid unit.  During the downtime, Scott and Nova intend to replace all three pumps.  The immediate focus over the past couple of weeks has been to procure the replacement pumps, which are expected to be received in late May.  Minor repairs and replacement of damaged piping, electrical systems and insulation are also proceeding.  The Scott refinery is scheduled to restart in mid June, subject to timely shipment and receipt of the replacement pumps, motors, baseplates and other equipment.

About Nova Biosource Fuels, Inc.

Nova Biosource Fuels, Inc. is an energy company that refines and markets ASTM standard biodiesel and related co-products through the deployment of its proprietary, patented process technology, which enables the use of a broader range of lower cost feedstocks. Nova is focused on building and operating a number of Nova-owned biodiesel refineries, with a goal of attaining production capacity of between 180 to 220 million gallons of biodiesel fuel on an annual basis. In particular, it is investing to improve the profitability of its 10 million gallon per year biodiesel refinery in Clinton, Iowa, while also completing the construction of its 60 million gallon per year biodiesel refinery in Seneca, Illinois. Nova's business strategy for the next three years includes building up to seven biodiesel refineries with production capacities ranging from 20 to 100 million gallons each per year. More information on Nova Biosource Fuels can be found at http://www.novabiosource.com/.

Forward-Looking Statements

This news release contains forward-looking statements, including statements regarding Nova's plans, goals, strategies, intent, beliefs or current expectations. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Readers are urged to carefully review and consider the various risk factors disclosed by Nova in its reports filed with the Securities and Exchange Commission, including Nova's Quarterly Report on Form 10-Q for the period ended January 31, 2008, which describes the risks and other factors that may affect Nova's business, financial condition, results of operations and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, Nova's actual results may vary materially from those expected or projected in this release or in Nova's other filings. 

Nova Biosource Fuels, Inc.