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China Botanic Pharmaceutical Announces Plans to Switch to Renewable Bio-Fuel - Straw Pellets
Date:4/21/2011

HARBIN, China, April 21, 2011 /PRNewswire-Asia/ -- China Botanic Pharmaceutical Inc. (NYSE AMEX: CBP) ("China Botanic" or the "Company"), a developer, manufacturer and distributor of botanical products, bio-pharmaceuticals and traditional Chinese medicines ("TCM") in China, today announced that the Company has successfully completed a feasibility study to analyze the benefits of using straw pellets, a renewable bio-fuel, for its production operations. As a result of the study, the Company plans to put the new fuel into use by October, 2011.

Straw pellets are a by-product of all natural ingredients, such as wheat and oil seed straw. The energy contained in the original raw material is highly concentrated, making straw pellets a clean fuel with very good energy qualities, calorific content with minimal amounts of ash. In comparison to coal, straw pellets are a lower cost and cleaner source of fuel. Moreover, straw pellets are carbon-neutral, since the fuel is made of plant waste which is part of the natural carbon cycle. Burning the fuel to generate energy simply returns the carbon dioxide to the atmosphere, which will then be reused by the next biomass growth.

1.5 tons of straw pellets produce the same amount of energy as one ton of coal. However, measured in terms of energy produced, the price of straw pellets is actually 15% to 20% lower than that of coal.  

"We believe our efforts to research a bio-fuel alternative to coal, such as straw pellets and decision to switch to a cleaner fuel demonstrates our commitment to achieve sustainable environmental growth and is in line with our goal to provide the high-quality plant-based treatments," commented Mr. Shaoming Li, Chairman and Chief Executive Officer of China Botanic. "Given that fuel costs account for approximately 10% of our total cost of goods, we expect the switch to bio-fuel to result in additional co
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SOURCE China Botanic Pharmaceutical Inc.
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