FUQING CITY, China, July 31 /Xinhua-PRNewswire-FirstCall/ -- China Clean Energy Inc. (OTC Bulletin Board: CCGY) (“China Clean Energy”, “the Company”), a leading producer of biodiesel fuel and environmentally friendly specialty chemical products made from renewable resources in The People’s Republic of China (“PRC”), today announced that its new biodiesel plant has successfully passed the environmental impact appraisal and that its construction plans have been approved by local authorities, putting the Company on track to complete the first and second phases of construction on schedule.
The new biodiesel fuel plant will be located 15 miles from China Clean Energy’s existing facility and will have a land area of 112,744 square meters, with total investment cost estimated at $15.0 million, including land usage rights, equipment acquisition and installation costs as well as working capital. The construction blueprint has been completed and land fill is scheduled for completion by August of 2007. The Company expects to secure credit line approval from local banks by October, when the entire approval process is expected to have been completed. The first phase of construction will add 50,000 metric tons per year of biodiesel fuel production capacity and is expected to come on line before the second half of 2008, while the second phase will increase capacity to 100,000 metric tons per year with expected completion in the first half of 2009. 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 excited with the progress we have made towards building our new biodiesel facility in Fuqing Jiangyin Industrial Park. We believe we are well positioned to participate in the expected rapid growth demand for biodiesel fuel in China, with the right strategies and a management team with extensive industry experience that can continue the successful execution of China Clean Energy’s business plan."
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; the Company’s ability to successfully expand its production capacity, 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.
For more information, please contact:
China Clean Energy Inc.
Mr. Gary Zhao, CFO
Tel: +86-138-0133-9172 (China)
Email: gary.zhao@chinacleanenergyinc.com
CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Mr. Ed Job, CFA
Tel: +1-646-213-1914
