FUQING CITY, China, Dec. 15 /Xinhua-PRNewswire-FirstCall/ -- China Clean
Energy Inc. (OTC Bulletin Board: CCGY) (“China Clean Energy”, “the
Company”), a leading producer of biodiesel fuel and green specialty chemical
products in The People’s Republic of China (“PRC”), today 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 (“Industrial Park”) in the Fujian Province of the PRC.
The new factory site is approximately 50 miles from Fuzhou, the Capital
City of Fujian Province, and 15 miles from China Clean Energy’s existing
facility at the Longtian Industrial Park of Fuqing. The new Industrial Park
is equipped with a deep-sea harbor capable of 300,000 ton cargo ships, a
container port, and railroad to be connected to the PRC’s national railroad
network by 2008.
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 approximately 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.
“We are very pleased to announce our plans to construct a new biodiesel
facility in the new Fuqing Jiangyin Industrial Park. This area is
strategically located close to our existing location and established markets,
and will have a multi-modal transportation infrastructure,” commented Mr.
Tai-ming Ou, China Clean Energy’s Chairman and Chief Executive Officer.
“Our new facility will allow us to meet the rapidly increasing demand for
environmentally-friendly energy sources in China.”
The fast pace of economic growth in recent years has turned China into
the second largest oil consumer in the world, based on statistics compiled by
the International Energy Agency. In order to support the growth of the
economy, reduce reliance on imported oil and increase the use of environment
friendly energy, the Chinese government, in its 11th Five Year Plan,
increased its commitment to promote renewable energy sources, such as
biodiesel. Biodiesel can be used in virtually any existing diesel engine
without modification and, in the opinion of Company management, it provides a
number of advantages over fossil diesel, including the reduction in carbon
emissions with a similar energy value, and the increase in handling safety
due to higher flash point (the point fuel ignites) and biodegradability
(spills cause little or no harm to the environment). In addition, China
generates a significant amount of low cost waste vegetable oil and recycled
cooking oil that can be used in the production of biodiesel. The Company
believes it can leverage the high availability of low cost feedstock in China
for the production of biodiesel to establish a cost advantage that may, in
the future, create export opportunities.
About China Clean Energy
China Clean Energy, through its wholly-owned subsidiary, Fujian Zhongde
Technology Co., Ltd, is engaged in the development, manufacturing, and
distribution of biodiesel fuel and specialty chemical products made from
renewable resources. Since its inception, the Company has been engaged in
the manufacture of high-quality specialty chemical products from renewable
resources. Through its research and development efforts, the Company
developed a proprietary process for refining biodiesel fuel from waste grease
and certain vegetable oils. Using this proprietary process, the China Clean
Energy began producing biodiesel in 2005 and commenced selling biodiesel
commercially starting in December 2005.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact in this
announcement are forward-looking statements, including but not limited to,
the Company’s ability to raise additional capital to finance the Company’s
activities; the effectiveness, profitability, and the marketability of its
products; legal and regulatory risks associated with the share exchange; the
future trading of the common stock of the Company; the ability of the Company
to operate as a public company; the period of time for which its current
liquidity will enable the Company to fund its operations; the Company’s
ability to protect its proprietary information; general economic and business
conditions; the volatility of the Company’s operating results and financial
condition; the Company’s ability to attract or retain qualified senior
management personnel and research and development staff; and other risks
detailed in the Company’s filings with the Securities and Exchange
Commission. These forward-looking statements involve known and unknown risks
and uncertainties and are based on current expectations, assumptions,
estimates and projections about the companies and the industry. The Company
undertakes no obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or to changes in its
expectations, except as may be required by law. Although the Company
believes that the expectations expressed in these forward looking statements
are reasonable, they cannot assure you that their expectations will turn out
to be correct, and investors are cautioned that actual results may differ
materially from the anticipated results.
