November 15, 2007 -- China Clean Energy Inc., a renewable resource biodiesel and chemicals manufacturer in China announced that it had successfully passed several stages of the government approval process for the company's new biodiesel plant at Jiangyin Industrial Park in Jiangsu. This puts the company on track to complete construction on time, with operations to start in the fourth quarter of 2008.

The new biodiesel fuel plant will be located 15 miles from China Clean Energy's existing facility with a total investment estimated at $15 million. The company expects to secure credit 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 begin operations 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.

"We are pleased with the progress we have made towards building our new biodiesel facility in Fuqing Jiangyin Industrial Park," Tai-ming Ou, chairman and CEO of China Clean Energy said in a statement. "We expect the approval process to be completed shortly, positioning us well to capitalize on record high international oil prices as well as the recent increase in diesel prices in China mandated by the government".

"The fast pace of economic growth in recent years has turned China into the second-largest energy user in the world. Though about 50 percent of the oil consumption is reliant on imports, as the price of oil increases, the cost of production is to rise, consequently, it has posted a severe challenge for the continuous growth of the Chinese economy." Gary Zhao, chief financial officer, China Clean Energy told Emerging China.

China's biodiesel industry is still very much in its infancy, said Zhao. Total production nationwide is just over 100,000 to 100,000 tons each year. He compares this figure with Chinese consumption of diesel in 2006, 110 million tons.

"The renewable energy industries are already booming in China. If the supportive policies could be further improved, China is well-placed to become the world's leader in renewable energies." Yang Ailun, climate and energy manager, Greenpeace, told Emerging China.

China Clean Energy, through its subsidiary, Fujian Zhongde Technology, engages in the development, manufacture, and distribution of biodiesel and specialty chemical products made from renewable resources. China Clean Energy markets its biodiesel products primarily to regional service stations in the People's Republic of China, as well as specialty chemical products to companies in Europe, the United States, and Asia. The company was founded in 1995 and is based in West Windsor, New Jersey.