The information in this Item 2.02 and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such filing.

ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT

As previously reported on a Current Report on Form 8-K filed with the Securities and Exchange Commission on January 2, 2008, on December 26, 2007, Nova Biofuels Seneca, LLC (“Nova Biofuels Seneca”), a subsidiary of the Company, entered into the $41 million senior secured construction, term and working capital credit facility (the “Credit Facility”) among Nova Biofuels Seneca, the Lenders party thereto, WestLB AG, New York Branch, as administrative agent for the Lenders, WestLB AG, New York Branch, as Issuing Bank with respect to the Letters of Credit, WestLB AG, New York Branch, as collateral agent for the Senior Secured Parties, WestLB AG, New York Branch, as lead arranger and sole bookrunner, and Sterling Bank, a Texas banking corporation, as accounts bank, in connection with the development, construction, installation, engineering, procurement, design, testing, start-up, operation and maintenance of Nova Biofuels Seneca’s 60 million gallon per year biodiesel refinery located in Seneca, Illinois.

On August 1, 2008, Nova Biofuels Seneca borrowed approximately $340,000 under the Credit Facility for the payment of project costs and other related fees and expenses.  This draw took the form of a base rate loan at an interest rate of 8% per annum.  The other terms of payment, events of default and other terms and conditions were previously described in the Form 8-K filed on January 2, 2008.  After taking into account this borrowing under the Credit Facility and all prior borrowings, cumulative construction and working capital borrowings total approximately $40.4 million.  Nova Biofuels Seneca has remaining available capacity of approximately $600,000 of construction and term loans and may also repay and re-borrow amounts under the working capital facility.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

99.1                           News Release dated August 4, 2008