China New Energy lands new waste-to-biofuel EPC contract

May 02, 2012

China New Energy Ltd (CNE) has signed a letter of intent to develop a facility in northeastern China that will use non-edible plant waste to produce clean fuel.

The GBP20 million (USD32.5 million) contract from a unit of state-owned Jilin Ethanol Industrial Company Ltd to upgrade an existing plant to us CNE’s more efficient process. It will produce about 50,000 tonnes of biofuel a year.

The company plans to advance its “cellulosic ethanol and butanol strategy and maintain a market share of more than 50 percent in providing technology and engineering solutions to China’s bioethanol and biobutanol industry,” executive chairman Weijun Yu said in a statement.

CNE is listed on London’s AIM market and yesterday announced a 29.4 percent increase in revenue to RMB179 million (USD28.4 million) for the year to the end of December while pre-tax profits increased 9 percent to RMB25.8 million (USD4 million).

The group says business outside China international business accounted the most of the growth and approximately 40 perrcent of revenue thanks to a string of Engineering, Procurement and Construction (EPC) contracts.