China Clean Energy to Build Second Biodiesel Plant
15 December 2006
China Clean Energy Inc. (CCE), a producer of biodiesel fuel and green specialty chemical products in China, plans to build a new biodiesel plant that will expand its production capacity by an additional 100,000 tonnes (30 million gallons US) per year.
In 2005, biodiesel production in China totaled between 100,000 and 200,000 tonnes, according to estimates by the US Department of Agriculture. (Ethanol production in 2005 was approximately 920,000 tonnes, with a production capacity of 1,020,000 tonnes.)
China’s policy objectives are to produce 12 million tonnes of biofuels—including ethanol and biodiesel—annually by 2020, resulting in biofuels meeting 15% of the nation’s consumption of transportation fuel.
CCE expects to break ground on the new biodiesel facility within the next six to nine months. The expansion is in two phases, each of 50,000 tonnes (15 million gallons US).
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 tonnes per year.
The company expects the first and second phases of construction to be 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.
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.
CCE’s first plant currently has annualized capacity of 4,800 tonnes (or approximately 1.4 million gallons US) for biodiesel fuel and 15,000 tonnes for specialty chemicals. The company is expanding the capacity of the plant’s annualized biodiesel fuel production to 10,000 tonnes (or approximately 3.0 million gallons US) expected to be in place by the first quarter of 2007.
China Clean Energy, through its wholly-owned subsidiary, Fujian Zhongde Technology Co., Ltd, develops, manufactures and distributes biodiesel and specialty chemical products made from renewable resources. The company has 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.
China, Peoples Republic of. Bio-Fuels: An Alternative Future for Agriculture 2006 (USDA GAIN report CH6049)
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