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China Clean Energy Updates Business Outlook
Date:6/27/2008

FUQING, China, June 27 /Xinhua-PRNewswire-FirstCall/ -- China Clean Energy Inc. (OTC Bulletin Board: CCGY) ("China Clean Energy", the "Company"), a leading producer of environmentally-friendly specialty chemical products made from renewable resources in The People's Republic of China, today announced that it continues to make progress in finding alternative markets for its specialty chemical products and that it continues to evaluate options that would allow it to resume biodiesel production.

Since halting biodiesel production in March 2008, the Company has been seeking alternative markets in China for its specialty chemical products, including selling standard monomer acid, a biodiesel substrate, to environmentally friendly paint producers. Monomer acid has a very similar chemical composition to biodiesel and benefits from the fact that its pricing is not regulated by the government, thus allowing the Company to pass on any increases in raw material costs to its customers.

With respect to the Company's suspended biodiesel operations, the Chinese government's recent decision to increase the selling price of diesel by RMB 1,000 per metric ton to RMB 7,300 per metric ton (including 17% Value Added Tax) has not been sufficient to allow the Company to restart biodiesel production due to the current prices of waste cooking oil and waste vegetable oil, which have risen from RMB 3,600 per ton to around RMB 5,000 per ton since March 2008. The Company, however, is currently seeking to secure these raw materials from suppliers in Malaysia and Indonesia, where prices have yet to increase as dramatically as they have in China (currently RMB 4,300 per ton). These discussions, however, remain preliminary, and no assurances can be given that the Company will be able to secure any raw materials from these suppliers at prices that would allow the resumption of biodiesel production.

"We are hopeful with the possibility of restarting our biodiesel productio
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SOURCE China Clean Energy Inc.
Copyright©2008 PR Newswire.
All rights reserved

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