$32 Million Waste to Biofuel Contract in China

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China new energy $32 Million Waste to Biofuel Contract in China01 May 2012

Jersey based biofuel technology manufacturer, China New Energy (LSE: CNEL) has signed a letter of intent to develop a facility in northeastern China that will use non-edible plant waste to produce clean fuel.

According to a stock market report the company has entered into an agreement of intent with a state-owned ethanol producer to convert an existing facility into a more efficient and advanced facility that will be capable of producing 50,000 tonnes of biofuel each year.

The report said that the agreement has been reached with Jilin Tianshun Biochemical Development Co, a subsidiary of JEIC, for the production of biofuel using cellulosic materials (non-edible organic waste from agriculture).

Under the agreement, CNE and Tianshun will modify and convert an existing JEIC production facility in Jilin into a commercial-scale, integrated facility to commercialise CNE's proprietary technology for cellulosic ethanol and butanol production, according to the report.

The Jilin biofuel facility is expected to be completed by the end of 2013 and will have an annual production capacity of 50,000 tonnes per annum of acetone, butanol and ethanol.

The total cost of the developing Jilin facility is reported to be approximately RMB200 million ($32 million).

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