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China Clean Energy delays plant construction

Biodiesel manufacturer China Clean Energy has experienced civil engineering setbacks and poor Monsoon season weather delaying construction of its Jiangyin biodiesel plant.

The 30 million gallon a year plant is now expected to begin production in Q2 2009.

The company has another biodiesel plant in China's Fujian Province, which began biodiesel production in 2005 but has since stopped producing because of the market conditions. 'They shut down their biodiesel plant earlier in the year because the raw material costs shot up, and diesel prices are fixed in China and their margins did not make it worth producing,' Ed Job, China Clean Energy consultant, comments. 'They are monitoring raw material prices and will resume biodiesel production when they can get margins that make sense again'

The original China Clean Energy plant in Fujian Province has an installed biodiesel production capacity of 10,000 tonnes a year and an 18,000 tonne capacity to produce specialty chemicals.

The biodiesel industry in China receives little federal support. 'The US has subsidies and uses different raw material, but in China you have no subsidies - the government does not support the industry - and they use waste vegetable oils, not edible virgin oils,' Job adds.

Since 1995, China Clean Energy has been making specialty chemicals like monomer and dimer acids from waste oils and greases with similar production processes for biodiesel.




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