China Clean Energy finishes new biodiesel plant

Fuqing City, China-based China Clean Energy said today it has completed construction of its Jiangyin plant, located about 20 miles from its existing plant.

The company (OTCBB:CCGY) develops and manufactures biodiesel and environmentally-friendly specialty chemical products made from renewable resources through its subsidiaries, Fujian Zhongde Technology and Fujian Zhongde Energy.

China Clean Energy said the new plant’s test production runs are slated for next month. The plant has been designed to produce up to 100,000 tons of biodiesel annually or a combination of as much as 40,000 tons of biodiesel and 30,000 tons of specialty chemicals.

To support its expanded production, the company said it has also started procuring raw materials.

"Once fully operational, we expect to ramp up the new plant to full capacity within six to 12 months which, we hope, will contribute to profitable growth in 2010 as [the] market fully recovers," said the company’s CEO Tai-ming Ou in a news release.

The plant was expected to be financed with a $4.4 million line of credit from local banks (see China Clean Energy shares up 58.4 percent). China Clean Energy had also closed a private placement of 10 million shares of common stock in January 2008 to generate $15 million to build the Jiangyin plant.

In addition, the company resumed operations last year at its existing 10,000 ton annual capacity biodiesel plant. It had halted production in March of that year due to rising feedstock prices (see Cheaper feedstock revives Chinese biodiesel plant).

Cleantech developments making news in the past 24 hours

• Metabolix, ADM to open new bioplastics factory
• Rockwool nears construction on Indian insulation factory
• Two Israeli wastewater firms to locate in Michigan
• Al Gore: Super grid is critical to combating the climate crisis
• A quest for CO2 and O2 optimal management with biofuel from algae

View the last week of cleantech developments here | Subscribe to full feed