China Clean Energy, a leading producer of biodiesel fuel and green specialty chemical products in China, has announced that it recently signed a contract to purchase land usage rights for 50 years for the construction of a new biodiesel factory located in the new Fuqing Jiangyin Industrial Park in Fujian Province.

The new factory site is approximately 50 miles from Fuzhou, the capital of Fujian, and 15 miles from China Clean Energy's existing facility at the Longtian Industrial Park of Fuqing. The new Industrial Park is equipped with a deep-sea harbor capable of 300,000 ton cargo ships, a container port, and railroad to be connected to China's national railroad network by 2008.

China Clean Energy expects to break ground on the new biodiesel facility within the next six to nine months, pending completion of the new Industrial Park's infrastructure construction. Work on the China Clean Energy's facility will be divided into two phases of construction. The first phase will require approximately a US$9 million investment (including US$2.5 million for land usage rights) and will increase the company's biodiesel production capacity by approximately 50,000 tons per year. The second phase will require an additional US$6 million investment and will increase biodiesel production capacity approximately by an additional 50,000 tons per year. The company expects the first and second phases of construction to be completed by the first half of 2008 and end of 2008, respectively. China Clean Energy has signed long-term agreements with major processors from Indonesia and Malaysia to supply palm oil leavings (waste) as raw materials for the new facility.

"We are very pleased to announce our plans to construct a new biodiesel facility in the new Fuqing Jiangyin Industrial Park. This area is strategically located close to our existing location and established markets, and will have a multi-modal transportation infrastructure," commented Tai-ming Ou, China Clean Energy's Chairman and Chief Executive Officer. "Our new facility will allow us to meet the rapidly increasing demand for environmentally-friendly energy sources in China."

Since its inception, China Clean Energy says it has been engaged in the manufacture of high-quality specialty chemical products from renewable resources. Through its research and development efforts, the company
developed a proprietary process for refining biodiesel fuel from waste grease and certain vegetable oils. Using this proprietary process, the China Clean Energy began producing biodiesel in 2005 and commenced selling biodiesel commercially starting in December 2005.