DALLAS -- Earth Biofuels Inc. has invested $5 million for an equity interest in a newly-formed company named Biodiesel Investment Group.



This Memphis-based investment group is teaming up with one of the nation's leading agribusiness firms, Bunge North America Inc., to build Illinois' largest biodiesel production plant in Danville, Ill. Bunge North America is the North American operating arm of Bunge Limited.

Strategically located adjacent to Bunge's soy crushing and corn milling plants, the new facility will provide a key link between local agriculture, Bunge's oilseed origination and processing capabilities, and a strong biodiesel market that the company believes is currently underserved. The plant is expected to have a production capacity of 45 million gallons per year and to be in production in the first quarter 2008.



The Biodiesel Investment Group consists of individual investors and Earth Biofuels Inc.



"We are pleased and excited to be an investor in the Biodiesel Investment Group and by the group's partnership with Bunge North America. We believe that this new facility will provide us an opportunity to broaden our geographic presence and supply Biodiesel under our brand name, BioWillie, to new markets and customers," said Dennis McLaughlin, chairman and CEO of Earth Biofuels Inc.



"We have been evaluating biodiesel opportunities and sites for about a year," said Mark Burke, the group's president. "The Danville site was attractive because of its ready availability of feedstock, the proximity of transportation capabilities and the commitment to alternative fuels that the state of Illinois has demonstrated. We were pleased with the positive support we have received from The Illinois Department of Commerce and Economic Development, the Illinois Finance Authority, the City of Danville and Vermillion Advantage."



Earth Biofuels produces and distributes renewable fuels through the company's network of wholesale and retail outlets. The Company's biodiesel fuel is sold under Willie Nelson's brand name, "BioWillie." The company is focused on capitalizing on the growing demand for alternative and renewable fuels in the domestic market.



SOURCE: Earth Biofuels Inc. via PR Newswire.