China Clean Energy resumes biodiesel production

By Anna Austin | November 13, 2008
Web exclusive posted Nov. 18, 2008 at 2:19 p.m. CST

Biodiesel manufacturer and distributor China Clean Energy Inc. resumed production at its facility in the Fujian Province of China on Nov. 10. The company suspended operations in April as a result of increasing costs for raw materials and stagnant diesel pricing. (See "China Clean Energy suspends biodiesel production.")

According to a company statement, it decided to recommence operations after a drop in yellow grease, cotton seed waste and rapeseed prices, which allowed China Clean Energy to "enjoy sufficient margins" to regain profitability.

China Clean Energy expects to produce up to 800 tons of biodiesel this quarter (approximately 219,000 gallons), compared to the plant's annual capacity of 10,000 tons (approximately 2.7 MMgy).

"We are very excited that we have moved back into producing biodiesel," said Tai-Ming Ou, chief executive officer and chairman of China Clean Energy. "We are also hopeful that the continued growth in the demand for fuel in China will allow us to operate our biodiesel plant at close to full capacity and help us improve our revenue and profit growth in the quarters ahead."

On Oct. 28, Biodiesel Magazine reported that China Clean Energy had halted construction of its 30 MMgy biodiesel plant in Jiangyin, China. (Read "China Clean Energy delays plant.")
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