New York (Platts)--24Mar2008

Alternative fuels developer PetroSun said Monday its first
algae-to-biofuels facility will begin operations on April 1 in Rio Honda,
Texas.

An on-site algae farm consists of 1,100 acres of saltwater ponds that
PetroSun expects will produce 4.4 million gallons of algal oil and 110 million
pounds of biomass annually, the company said in a statement.

About 20 acres of ponds have been set aside for a research and
development program related to algae-derived jet fuel, the Arizona-based
company said.

"The Rio Hondo algae farm will be expanded in the future to provide the
feedstock required by present or proposed company-owned or joint ventured
biodiesel and ethanol refineries," PetroSun said. "The company plans to
construct or acquire additional plants in the Gulf Coast region that are
reachable via barge up the Mississippi River and its tributaries..."

PetroSun last month announced it has signed an agreement to acquire a 50%
stake in Fleet Biodiesel, an Alabama company. Terms were not disclosed.