April 30 (Bloomberg) -- China New Energy Ltd., a maker of biofuel technology, signed a letter of intent to develop a facility in northeastern China that will use non-edible plant waste to produce clean fuel.
China New Energy won the 20 million-pound ($32.5 million) contract from a unit of state-owned Jilin Ethanol Industrial Company Ltd. to convert an existing plant to a more efficient version, the Guangzhou-based company said today in an e-mailed statement. It will produce about 50,000 tons of biofuel a year.
China is seeking to cut carbon-dioxide emissions by as much as 17 percent per unit of gross domestic product in its five-year plan through 2015. China aims to derive 15 percent of its energy from non-fossil fuels by 2020.
The facility should start working by the end of next year, and China New Energy expects it to generate as much as 20 million pounds of revenue by late 2013.
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.
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