China Clean Energy, Inc. (otc

OTC

OTC may refer to:* Oakwood Technology College* Owatonna Tool Company* Oklahoma Tax Commission* Odenton Town Center* Officer in Tactical Command* Officer Training Corps* Offshore Technology Conference* Ohio Turnpike Commission...

:ccgy), through its wholly owned subsidiary Fujian Zhongde Technology Co., Ltd. (“Fujian Zhongde”), is a biodiesel

Biodiesel

Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....

 and specialty chemical producer operating in The People's Republic of China and selling products both domestically there and worldwide.

Biodiesel

The company uses waste vegetable oils, such as cotton seed leavings, and yellow grease, as feedstocks, processing them through proprietary technologies to produce biodiesel for local consumption and a variety of "green" chemicals for sale worldwide.

In early 2008, the company secured private funding through a special stock offering to create a 100,000 metric ton annual capacity biodiesel plant. The company's current plants are approximately one-tenth of that size.

Specialty Chemicals

The company produces by products of biodiesel and various specialty chemicals. Because these chemicals are produced from renewable feedstock, they can be considered "green" and sold for a premium in some markets.

Chemicals listed include: Monomer Acid, Stearic, Dimer Acid

Dimer acid

Dimer acids, or dimerized fatty acids, are dicarboxylic acids prepared by dimerizing unsaturated fatty acids obtained from tall oil, usually on clay catalysts. The CAS number of the material is [61788-89-4]. Dimer acids are used primarily for synthesis of polyamide resins and polyamide hot melt...

, Printing Inks, Dimer-Based Polyamide Hot Melt Adhesive

Adhesive

An adhesive, or glue, is a mixture in a liquid or semi-liquid state that adheres or bonds items together. Adhesives may come from either natural or synthetic sources. The types of materials that can be bonded are vast but they are especially useful for bonding thin materials...

, Low Molecular Weight Liquor Polyamide

Polyamide

A polyamide is a polymer containing monomers of amides joined by peptide bonds. They can occur both naturally and artificially, examples being proteins, such as wool and silk, and can be made artificially through step-growth polymerization or solid-phase synthesis, examples being nylons, aramids,...

 Resins, Polyamide Hot-Melt Adhesive, Alcohol

Alcohol

In chemistry, an alcohol is an organic compound in which the hydroxy functional group is bound to a carbon atom. In particular, this carbon center should be saturated, having single bonds to three other atoms....

-soluble Polyamide Resins, Benzene

Benzene

Benzene is an organic chemical compound. It is composed of 6 carbon atoms in a ring, with 1 hydrogen atom attached to each carbon atom, with the molecular formula C6H6....

-Soluble Polyamide Resins, and Bio Heating Fuel.

Competitors

The company's website claims that it is one of two publicly traded biodiesel producers currently operating in China. The other is presumably Gushan

Gushan

Gushan Environmental Energy Limited , is a biodiesel producer in China that was incorporated on May 16, 2006. The Company produces biodiesel and by-products of biodiesel production, including glycerol, plant asphalt, erucic acid and erucic amide...

, which is listed on the New York Stock Exchange

New York Stock Exchange

The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

. A larger number of competitors could be listed for their worldwide chemical sales, although only a handful would meet China Clean Energy's "green" credentials.

Auditor

On April 15, 2008, China Clean Energy reported it was changing auditors from Michael T. Studer CPA P.C. to Moore Stephens Wurth Frazer and Torbet, LLP. Controversy surrounding the reliability of the previous auditor may have been central to this decision.

On February 18, 2008, Barrons reported:

" One auditor of Chinese companies like China Clean Energy (CCGY) and China Kangtai Cactus Biotech (CKGT) is Michael T. Studer of Freeport, N.Y. In 2006, during an inspection, the PCAOB found "deficiencies of such significance that it appeared...the Firm (Studer) did not obtain sufficient competent evidential matter to support its opinion on the issuer's financial statements." Moreover, in 2004, the National Association of Securities Dealers expelled Studer's firm and barred him from association with any securities firm."

External links

• Official Company Website
• http://finance.google.com/finance?q=ccgy
• http://finance.yahoo.com/q?s=CCGY.OB
• http://online.barrons.com/article/SB120312686968473233.html?mod=yahoobarrons&ru=yahoo
• http://www.iht.com/articles/2006/09/05/bloomberg/bxipo.php
• http://www.sec.gov/litigation/opinions/34-39523.txt
• http://www.sec.gov/litigation/opinions/34-50411.htm
• http://www.pcaobus.org/Inspections/Public_Reports/2006/Michael_T_Studer.pdf