Chinese biodiesel company breaks into U.S. market trading
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"The U.S. is the biggest capital market in the world with the biggest capital pool," said Tai-ming Ou, CEO and chairman of China Clean Energy. "Being public in the U.S. is an important milestone in the history of China Clean Energy."
By making the move, China Clean Energy becomes the only China-based biodiesel company to be traded publicly on the U.S. market. Its wholly owned subsidiary Fujian Zongde Technology Co. Ltd. launched biodiesel production in December 2005 in the Fujian Province of China and is aiming to produce 100,000 tons of biodiesel per year (30 MMgy) in 2008.
China has experienced rapid growth in the past five years, becoming an oil importer in 2005. The nation of 1.3 billion people currently uses one-third of the world's oil supply. Ou said the consumption of diesel is only about 45 percent of the consumption of gasoline, but there is a growing demand for the company's product and big potential in future demand.
"According to a report from the China Development and Reform Commission, by 2010 China's annual biodiesel output will only be 2.5 million tons (750 MMgy)," Ou said. "This is far too little to supplement the gap between oil supply and consumption. The biodiesel production will lag (behind) market demand."
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