China Clean Energy expands biodiesel fuel capacity
China— China Clean Energy Inc. (China Clean Energy), a producer of biodiesel fuel and green specialty chemical products in The People's Republic of China (PRC), announced that it signed a contract to purchase land usage rights for 50 years for the construction of a new biodiesel factory located in the new Fuqing Jiangyin Industrial Park in the Fujian Province of the PRC.
China Clean Energy expects to break ground on the new biodiesel facility within the next six to nine months, pending completion of the new Industrial Park's infrastructure construction. Work on the China Clean Energy's facility will be divided into two phases of construction. The first phase will require approximately a $9 million investment (including $2.5 million for land usage rights) and will increase the Company's biodiesel production capacity by approximately 50,000 tons per year.
The second phase will require an additional $6 million investment and will increase biodiesel production capacity by an additional 50,000 tons per year. The Company expects the first and second phases of construction to be completed by the first half of 2008 and end of 2008, respectively. China Clean Energy has signed long-term agreements with major processors from Indonesia and Malaysia to supply palm oil leavings (waste) as raw materials for the new facility.