Web exclusive posted April 30, 2008 at 2:53 p.m. CST 
 

 China Clean Energy Inc. has suspended its biodiesel production due to a recent spike in the cost for raw materials and stagnant diesel pricing.
 
 The Fujian province-based Chinese biodiesel producer said the cost of its principal raw materials, which include yellow grease, cotton seed waste and rapeseed waste, rose to over $500 per ton in February, up from an average of $368 per ton in the fourth quarter of 2007.
 
 However, the hike in production costs is not compromised by an increase in retail diesel prices, which remain sluggish at approximately $700 per ton in China.
 
 The company will monitor the raw material costs and wholesale diesel prices closely before making any future moves to restart its biodiesel plant. Meanwhile, the New York-listed company will step up the production of higher value added specialty chemicals to offset the loss in revenue from its biodiesel business.
 
 China Clean Energy is building a new biodiesel factory in the new Fuqing Jiangyin Industrial Park, located about 15 miles from its existing facilities. It is being modified to include the ability to produce specialty chemicals that maintain their flexibility. The plant will be equipped with the flexibility to annually produce 100,000 tons of biodiesel, or 100,000 tons of specialty chemicals, or a combination of biodiesel and specialty chemicals for a total output of 100,000 per year.

China Clean Energy suspends biodiesel production

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Upcoming Events

North American SAF Conference & Expo

2026 International Biomass Conference & Expo

China Clean Energy suspends biodiesel production