Exhibit 99.1

Graphic

NEWS RELEASEBIOFUEL REPORTS FOURTH QUARTER AND YEAR END RESULTS

DENVER, COLORADOMARCH 27, 2009BIOFUEL ENERGY CORP. (NASDAQ:BIOF),an ethanol
production company, today announced its fourth quarter and year end results. For the three months ended December 31, 2008, revenues totaled $89.0 million, which was comprised of
$73.6 million from sales of ethanol and $15.4 million from sales of distillers grain. Net loss to common shareholders was $6.9 million, or $.43 a share, for the three months ended
December 31, 2008. The aggregate loss for the three months ended December 31, 2008 was $12.3 million, which included $5.4 million of losses attributable to minority
interests. For the year ended December 31, 2008, revenues totaled $179.9 million, comprised of $151.2 million from sales of ethanol and $28.7 million from sales of
distillers grain. Net loss to common shareholders was $40.9 million, or $2.65 a share, for the year. The aggregate loss for the year was $84.1 million, which included
$43.2 million of losses attributable to minority interests.

Operating
loss for the fourth quarter was $8.2 million, which resulted from $95.1 million of cost of goods sold, including $65.7 million for corn. The Company also
had $4.2 million of interest expense in the fourth quarter, which resulted in the aggregate loss of $12.3 million. For the full year, operating loss was $37.7 million, which
resulted from $199.2 million of cost of goods sold, including $140.5 million for corn. Also included in other operating expenses were $1.1 million of costs representing the write
off of all remaining site development costs associated with prospective plants. During the year the Company had $5.8 million in interest expense, $39.9 million of losses on corn hedging,
and $1.8 million in other non-operating expenses, offset by $1.1 million in interest income. In summary, a net loss of $44.2 million before minority interest would
have been recorded in the absence of hedging losses.

The
fourth quarter of 2008 was the second quarter of operations for the Company. As previously reported, both of the Company's plants achieved project completion in December, which was
the final test under the Company's construction contracts. The plants ran at 100% of their nameplate capacity in December and continue to do so.

Scott
H. Pearce, the Company's President and Chief Executive Officer, stated: "These are obviously challenging times in the ethanol industry, yet we were able to overcome significant
obstacles during the second half of 2008. This was possible because of the strength of our management team, to whom I am grateful for their dedication and professionalism. We also continue to benefit
from our close working relationship with Cargill. Although our plants continue to operate at or above their nameplate capacity, gross margins, based on the crush spread, continue to exert significant
pressure on operating margins in 2009. In addition, we anticipate having to make a principal payment on our bank facility by the end of the second quarter. We have begun a company-wide
cost cutting program, and continue to execute on our operational efficiency initiatives at our plants. However, if margins do not improve significantly we may have to restructure our debt or seek
other accommodations from our lenders in the coming months, in order to continue operating as planned."

In
the fourth quarter, the Company borrowed $1.7 million under its construction loan and $7.0 million under its working capital facility. At December 31, 2008,
amounts outstanding included $181.2 million drawn under the construction loan and $17.0 million borrowed on the working capital facility. Of the $28.8 million still available
under the construction facility at December 31, 2008, $9.4 million was used to pay retainage in February 2009 and $10.8 million is reserved to fund a debt service reserve account.
At December 31, 2008, the Company held $12.3 million of cash and equivalents, stockholders' equity totaled $80.7 million and minority interest totaled $14.1 million.

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The
Company also reported that, because of the significant losses realized in 2008 and the poor operating margins resulting from the relative price of corn and ethanol, its auditors had
included an explanatory paragraph with its audit opinion on the Company's December 31, 2008 financial statements, expressing substantial doubt about the Company's ability to continue as a going
concern.

The
Company plans to host a conference call on Monday, March 30, 2009 beginning at 11:00 a.m. (EDT) to discuss the results. To participate, please dial
(800) 944-8766. The participant code for the call is 62291. Approximately 90 minutes following the call, a phone playback will be available for 30 days by dialing
(866) 281-6782. The access code for the replay is 161139.

This
release contains certain forward-looking statements within the meaning of the Federal securities laws. Such statements are based on management's current expectations, estimates and
projections, which are subject to a wide range of uncertainties and business risks. Forward-looking statements should not be read as a guarantee of future performance or results, and will not
necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Factors that could cause actual results to differ from those anticipated are
discussed in our Exchange Act filings and our Annual Report on Form 10-K.

BioFuel
Energy currently has two 115 million gallons per year ethanol plants in the Midwestern corn belt. The Company's goal is to become a leading ethanol producer in the United
States by acquiring, developing, owning and operating ethanol production facilities.

###

Contact:

Kelly G. Maguire

For more information:Vice PresidentFinance &

www.bfenergy.comChief Financial Officer
(303) 640.6500 kmaguire@bfenergy.com


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BioFuel Energy Corp.  (in thousands, except per share amounts)

Three Months Ended December 31,

Years Ended December 31,Summary Income Statement

2007

2008

2007

2008Net sales

$


$
89,026

$


$
179,867Cost of goods sold





95,143





199,163Gross loss





(6,117
)




(19,296
)General and administrative expenses:Compensation expense


1,368


1,503


5,379


8,063Other


1,278


574


3,836


8,981Other operating expense





5





1,350Operating loss


(2,646
)

(8,199
)

(9,215
)

(37,690
)Interest income


744


101


1,812


1,087Interest expense





(4,199
)




(5,831
)Other non-operating expense





4





(1,781
)Loss on derivative financial instruments











(39,912
)Loss before minority interest


(1,902
)

(12,293
)

(7,403
)

(84,127
)Minority interest


890


5,406


4,982


43,262Net loss


(1,012
)

(6,887
)

(2,421
)

(40,865
)Beneficial conversion charge








(1,327
)

Net loss to common shareholders

$
(1,012
)
$
(6,887
)
$
(3,748
)
$
(40,865
)Loss per sharebasic and diluted

$
(0.07
)
$
(0.43
)
$
(0.35
)
$
(2.65
)Weighted average shares outstandingBasic and diluted


15,313


15,920


10,643


15,419




Additional operational dataEthanol sold (gallons, in thousands)





46,983





82,582Dry distillers grain sold (tons, in thousands)





102.3





170.9Wet distillers grain sold (tons, in thousands)





96.3





185.8Average price of ethanol sold (per gallon)




$
1.58




$
1.85Average price of dry distillers grain sold (per ton)




$
123.14




$
133.68Average price of wet distillers grain sold (per ton)




$
34.79




$
37.21Average corn cost (per bushel)




$
3.66




$
4.54




Summary Balance Sheet

December 31, 2007

December 31, 2008Cash and equivalents

$
55,987

$
12,299Accounts receivable





16,669Inventories





14,929Prepaid expenses


194


2,153Restricted cashcurrent





612Other current assets





203Property, plant and equipment, net


276,785


305,350Certificates of deposit


2,155


4,015Debt issuance costs, net


8,852


7,917Restricted cashnon-current





1,003Other non-current assets


126


574Total assets

$
344,099

$
365,724Total current liabilities

$
24,814

$
38,157Senior debt, net of current portion


102,440


206,990Subordinated debt, net of current portion


20,000


19,361Tax increment financing, net of current portion


5,823


5,887Derivative financial instrument, net of current portion


525


83Other non-current liabilities


27


487Total liabilities


153,629


270,965Minority interest


68,799


14,069Stockholders' equity


121,671


80,690Total liabilities and stockholders' equity

$
344,099

$
365,724Total shares outstanding at March 26, 2009 (a)


32,588,778


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