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China Clean Energy Provides Business Update
Date:7/7/2009

FUQING CITY, China, July 7 /PRNewswire-Asia-FirstCall/ -- China Clean Energy Inc. (OTC Bulletin Board: CCGY) ("China Clean Energy", the "Company"), a producer of biodiesel fuel and environmentally-friendly specialty chemical products made from renewable resources in The People's Republic of China ("PRC"), today announced that business conditions have improved in the second quarter 2009, compared to the first quarter, driven by improved demand and higher average selling prices for its biodiesel and specialty chemical products. The Company also re-affirmed that the construction of its Jiangyin plant is expected to be completed in September 2009. Recent pictures illustrating progress in the construction of the new plant are available at: http://www.chinacleanenergyinc.com/Picture.htm .

Upon completion of the new plant, it is expected that China Clean Energy will consolidate its position as the second largest biodiesel company in China with biodiesel production capacity of 100,000 tons from the new plant and 10,000 from the existing plant for a total of 110,000 tons per year. The new plant will also have the capability to produce up to 30,000 tons of specialty chemicals which management believes is critically important to maintain the Company's operating flexibility to optimize margins and reduce the business risk associated with mismatches of feedstock and diesel prices in China over the economic cycle.

"We are pleased to re-affirm that the Jiangyin plant is expected to be operational in the beginning of the fourth quarter 2009," said Mr. Tai-ming Ou, China Clean Energy's Chairman and CEO. "In addition, we are very pleased to announce that we have experienced improved sales volume and prices for biodiesel and specialty chemicals in the second quarter as a result of increased orders from existing customers as well as from new business
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SOURCE China Clean Energy Inc.
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