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Research and Development

1.Continued enhancement of production yields and reduction of energy consumption;

2.Developing and commercializing new sources of biofuel and biochemicals through internal research efforts and via joint collaborations with third parties;

3.The Company has developed proprietary technology of producing biobutanol using cellulosic materials (agricultural waste). This process allows us to efficiently capture all co- and by products (Acetone, Butanol and Ethanol [or commonly known as “ABE”], and biogases) produced during the process thereby maximizing the value extracts from inputs. At the moment, based on laboratory settings, our unit cost of biobutanol is around RMB8,500 – RMB9,000 per ton versus the current market price of butunol of around RMB10,000 per ton. We are working towards reducing the unit production cost further to RMB7,500-8,000 per ton over the next 12 months;

4.Research collaborations with

- Butylfuel LLC
- Green Biologic Limited
- Ji’nan University


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© 2013 China New Energy Limited

Main Operating Office: 8/F, Technology Integration Building, No. 4, Nengyuan Road, Tianhe District, Guangzhou, Guangdong Province, China

Tel: +86-20-8705 7185 Fax: +86-20-8705 7162 Email: secretary@zkty.com.cn Postcode: 510640