Innovation Fuels Begins Selling BioDiesel to Customers From Port of Milwaukee Terminal

BQ-9000® Biodiesel Supplier Opens Hub in Midwest US

Milwaukee, WI – May 13, 2009 – Innovation Fuels, the New York based renewable energy company that manufactures, markets, and distributes second-generation biodiesel to customers around the world has announced it has begun selling biodiesel to customers from its Midwestern renewable fuels hub / Port of Milwaukee terminal located on Lake Michigan.

The 312,000 barrel (45,000 metric tons) capacity terminal located on ten (10) acres is the first in the country that is totally dedicated for the sale and distribution of renewable fuels.

Originally built as Shell Oil’s Milwaukee headquarters in the 1950’s and acquired from NuStar Energy L.P. (NYSE:NS), the Innovation Fuels terminal includes a 20,000 square foot warehouse, executive offices and a garage.

John Fox, CEO for Innovation Fuels commented, “The commencement of selling biodiesel via our Milwaukee terminal will significantly lower the cost of our biodiesel to customers in the Great Lakes due to lower transportation charges.”

“We also bring along a mindset of quality at a reasonable price, which is backed by our BQ9000 credentials as a marketer and producer in the Northeast United States,” added Fox. “It is highly advantageous for us to be marketing Milwaukee based biodiesel to customers in Milwaukee and greater Wisconsin as well as to Chicago and the entire Midwestern region.”

“This signifies only the beginning of using this facility as an actual renewable fuels hub in the Midwest,” remarked Richard “Hardy” Sawall, Innovation Fuels SVP for Midwest Operations. “We expect to announce plans for additional capabilities including biodiesel blending very shortly.”

Innovation Fuels’ Milwaukee terminal features existing truck and rail loading infrastructure, with excellent highway access and is served by two Class I railways, the Union Pacific Railroad and the Canadian Pacific Railroad. In addition, the Port of Milwaukee has international shipping access via the St. Lawrence Seaway and can receive river barge cargo via the Mississippi. The facility also has an idled connection to the Westshore petroleum pipeline, which could be used to bring in diesel and gasoline to the terminal for blending with renewable fuels, such as biodiesel and ethanol.

Garland Middendorf, President of Wolf Lake Terminals, Innovation Fuels’ operations partner for the Milwaukee terminal commented, “This is indeed a momentous occasion as we begin to promote and distribute renewable fuels in Milwaukee. Our partnership with Innovation Fuels signifies our commitment to the growth of sustainable energy and to become an industry leader both in the Midwest and across the U.S.”

About Tanco Milwaukee LLC and its affiliates:
Tanco Milwaukee LLC was established by Garland, Chad and Kip Middendorf for the purposes of owning and operating the Milwaukee facility.

Tanco’s affiliated operations consist of four other liquid storage facilities in the Midwest including:

Wolf Lake Terminals in Hammond, Indiana is a 510,000 barrel rail and truck served facility. Established in 1973, Wolf Lake offers Biodiesel production and distribution services as well as a full complement of for hire terminal services.

Tanco Terminals is located at the International Port of Indiana. Constructed in 1978, Tanco is a 292,000 barrel bulk liquid storage facility. It offers access to the Great Lakes and the rest of the world through the St. Lawrence Seaway.
Tanco Clark Maritime, LLC is a 248,000 barrel terminal located in the Clark Maritime Center, Jeffersonville, Indiana. It is accessible by truck, rail and barge on the Ohio River.

Tanco Kansas City, LLC is an 180,000 barrel terminal located just outside of Kansas City Missouri on the Missouri river with barge, truck and rail access.
All of the facilities and the company have an impeccable reputation for providing safe, reliable and cost effective storage services.

About Innovation Fuels

With shovel-ready projects in New York, New Jersey and Wisconsin, Innovation Fuels is a leading biodiesel company with a global reach and mission to replace diesel fuel with sustainably produced biodiesel. Innovation Fuels takes a proactive and solution-oriented approach to its business with a focus on fiduciary responsibility, social and environmental stewardship, and community safety. Innovation Fuels currently operates integrated biorefineries within the United States at strategic port locations including New York Harbor and Port of Milwaukee that provide for the supply to regional customers and a network of international partners. Innovation Fuels is also dedicated toward creating green jobs including more than thirty (30) local green jobs at its New York Harbor biorefinery in Newark, NJ. Biodiesel is produced by chemically reacting alcohol with vegetable oils, fats, or greases. Using innovative, proprietary production technology, Innovation Fuels biodiesel is the highest quality at the lowest cost to its customers. The company is also working toward the development of next generation feedstocks including pennycress and algae – all crops that don’t divert resources away from feeding people.

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