Gushan
Encyclopedia
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. Biodiesel is a renewable, clean-burning and biodegradable fuel produced from a variety of feedstocks, such as vegetable oil, animal fat and recycled cooking oil. Currently there are 5 production facilities located in Beijing
, Shanghai
, Mianyang
in Sichuan
province, Handan
in Hebei
province and Fuzhou
in Fujian
province, serving the northern, interior and southeastern regions of China respectively. Biodiesel is used to fuel a range of diesel engines, typically after blending with diesel, including diesel engines found in trucks, mass transit vehicles, marine vessels and generators. The by-products of its biodiesel production have commercial applications in the food, pharmaceutical and manufacturing industries. The Company sells its products in China to direct users, including marine vessel operators, petroleum wholesalers and individual retail gas stations. The Company primarily uses vegetable oil offal and used cooking oil to produce biodiesel. It acquires the raw materials supply for each of its production facilities primarily from local suppliers.
The Company's biodiesel production process generates biodiesel and the by-products of biodiesel production, such as glycerine, a distillation residue of biodiesel production known as plant asphalt, erucic acid and erucic amide, which has commercial applications. Its products include biodiesel, which is a renewable, clean-burning and biodegradable
alternative to diesel that can be used to power a range of diesel vehicles, including trucks, mass transit vehicles and marine vessels; glycerine and refined glycerine, which is a colorless, odorless, nontoxic liquid with uses, including use in foods and beverages, as a preservative, sweetener or softening agent, in pharmaceuticals, as a lubricant, alcohol substitute or expectorant, as a paint dissolving solvent, and in personal care products, in soap, shampoo and lotion; plant asphalt, as fuel for boilers, casting plaster and a stain remover; erucic acid, which is a fatty acid that can be extracted from rapeseed and used in the production of lubricants and polyesters, in skin and health care products, plastic photographic film manufacturing processes and as a transmission fluid additive; erucic amide, which is an anti-felt, anti-static agent for fabrics and a plastics lubricant; stearic acid, which is a fatty acid used in making plastics, soaps, cosmetics and candles.
The Company competes with China Biodiesel International Holdings, East River Energy Resources, Sinopec
, Cnooc and PetroChina
.
is composed of 5 directors 3 of whom are independent directors. As of 2009 they include Jianqiu Yu the principal executive officer, Deyu Chen, Kang Nam Chu, Dongming Zhang, and Denny Lee.
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....
producer in China that was incorporated on May 16, 2006. The Company produces biodiesel and by-products of biodiesel production, including glycerol
Glycerol
Glycerol is a simple polyol compound. It is a colorless, odorless, viscous liquid that is widely used in pharmaceutical formulations. Glycerol has three hydroxyl groups that are responsible for its solubility in water and its hygroscopic nature. The glycerol backbone is central to all lipids...
, plant asphalt, erucic acid
Erucic acid
Erucic acid is a monounsaturated omega-9 fatty acid, denoted 22:1 ω-9. It has the formula CH37CH=CH11COOH. It is prevalent in rapeseed, wallflower seed, and mustard seed, making up 40-50% of their oils...
and erucic amide. Biodiesel is a renewable, clean-burning and biodegradable fuel produced from a variety of feedstocks, such as vegetable oil, animal fat and recycled cooking oil. Currently there are 5 production facilities located in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
, Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, Mianyang
Mianyang
Mianyang is the second largest prefecture-level city of Sichuan province in Southwest China. Its administrative area includes the city proper of Mianyang, with 985,586 inhabitants in the built up area , the county-level city of Jiangyou, and six counties, covering an area of over and a population...
in Sichuan
Sichuan
' , known formerly in the West by its postal map spellings of Szechwan or Szechuan is a province in Southwest China with its capital in Chengdu...
province, Handan
Handan
Handan is a prefecture-level city located in the southwestern part of Hebei Province of China.- History :Handan was the capital of the State of Zhao during the Warring States period , after the capital moved from Zhongmu. The city was conquered by the State of Qin after the virtual annexation of...
in Hebei
Hebei
' is a province of the People's Republic of China in the North China region. Its one-character abbreviation is "" , named after Ji Province, a Han Dynasty province that included what is now southern Hebei...
province and Fuzhou
Fuzhou
Fuzhou is the capital and one of the largest cities in Fujian Province, People's Republic of China. Along with the many counties of Ningde, those of Fuzhou are considered to constitute the Mindong linguistic and cultural area....
in Fujian
Fujian
' , formerly romanised as Fukien or Huguing or Foukien, is a province on the southeast coast of mainland China. Fujian is bordered by Zhejiang to the north, Jiangxi to the west, and Guangdong to the south. Taiwan lies to the east, across the Taiwan Strait...
province, serving the northern, interior and southeastern regions of China respectively. Biodiesel is used to fuel a range of diesel engines, typically after blending with diesel, including diesel engines found in trucks, mass transit vehicles, marine vessels and generators. The by-products of its biodiesel production have commercial applications in the food, pharmaceutical and manufacturing industries. The Company sells its products in China to direct users, including marine vessel operators, petroleum wholesalers and individual retail gas stations. The Company primarily uses vegetable oil offal and used cooking oil to produce biodiesel. It acquires the raw materials supply for each of its production facilities primarily from local suppliers.
The Company's biodiesel production process generates biodiesel and the by-products of biodiesel production, such as glycerine, a distillation residue of biodiesel production known as plant asphalt, erucic acid and erucic amide, which has commercial applications. Its products include biodiesel, which is a renewable, clean-burning and biodegradable
Biodegradation
Biodegradation or biotic degradation or biotic decomposition is the chemical dissolution of materials by bacteria or other biological means...
alternative to diesel that can be used to power a range of diesel vehicles, including trucks, mass transit vehicles and marine vessels; glycerine and refined glycerine, which is a colorless, odorless, nontoxic liquid with uses, including use in foods and beverages, as a preservative, sweetener or softening agent, in pharmaceuticals, as a lubricant, alcohol substitute or expectorant, as a paint dissolving solvent, and in personal care products, in soap, shampoo and lotion; plant asphalt, as fuel for boilers, casting plaster and a stain remover; erucic acid, which is a fatty acid that can be extracted from rapeseed and used in the production of lubricants and polyesters, in skin and health care products, plastic photographic film manufacturing processes and as a transmission fluid additive; erucic amide, which is an anti-felt, anti-static agent for fabrics and a plastics lubricant; stearic acid, which is a fatty acid used in making plastics, soaps, cosmetics and candles.
The Company competes with China Biodiesel International Holdings, East River Energy Resources, Sinopec
Sinopec
China Petroleum & Chemical Corporation Limited , or Sinopec Limited , is a majority owned subsidiary of state owned company Sinopec Group. Sinopec Limited is listed in Hong Kong and also trades in Shanghai and New York ....
, Cnooc and PetroChina
PetroChina
PetroChina Company Limited is a Chinese oil company and is the listed arm of state-owned China National Petroleum Corporation , headquartered in Dongcheng District, Beijing. It is China's biggest oil producer, and was the world's most valuable company by market value as of September 28th 2010...
.
Corporate Governance
The board of directorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
is composed of 5 directors 3 of whom are independent directors. As of 2009 they include Jianqiu Yu the principal executive officer, Deyu Chen, Kang Nam Chu, Dongming Zhang, and Denny Lee.
Biodiesel
The Company's aggregate annual biodiesel production capacity increased from 40,000 tons, during the year ended December 31, 2004 to 70,000 tons, 170,000 tons and 190,000 tons as of December 31, 2005 and 2006 and November 1, 2007, respectively. It produced and sold 158,994 tons of biodiesel during the year ended December 31, 2006, and 136,587 tons of biodiesel as of September 30, 2007.Future Production Capacity
Gushan has stated that they are targeted to increase their annual biodiesel production capacity to 400,000 tons by the end of 2008. This prediction is in part due to two new production facilities whose construction will be completed in Hunan and Chongqing and expanding capacity at their Beijing plant.History
- In 2001, Sichuan Gushan (Sichuan Gushan Vegetable Fat Chemistry Co., Ltd.) was established in Mianyang, Sichuan and began production of biodiesel with a manufacturing capacity of 10,000 tons.
- In 2003, Handan Gushan (Handan Gushan Bio-sources Energy Co. Ltd.) was established in Hebei and began to build a production line with biodiesel capacity of 30,000 tons per year which commenced production in 2004.
- In 2004, the company obtained ISO9001: 2000 international quality control certification.
- In 2004, a 30,000 ton biodiesel production line was added at the Sichuan facility, increasing capacity to 40,000 tons per annum
- In 2005, Fujian Gushan (Fujian Gushan Bio-diesel Energy Co., Ltd.) was establishedin Mawei, Fuzhou, Fujian Province and the company then began building a facility with biodiesel production capacity of 100,000 tons per year which commenced production in 2006.
- In 2006, Shanghai Gushan (Shanghai Gushan Bio-sources Energy Technologies Co.,Ltd.) and Beijing Gushan (Beijing Gushan Bio-sources Energy Co. Ltd.) in Beijing were established.
- In 2007, a 20,000 ton biodiesel production line was added at the Sichuan facility, increasing to 60,000 tons per annum.
- On December 19, 2007 an initial public offering of 18,000,000 American Depositary Shares (ADSs) began trading on the New York Stock Exchange under the symbol “GU”.
- On January 24, 2008, a 50,000 ton biodiesel production was added at the new opened Beijing plant, increasing capacity to 240,000 tons per annum.
- On February 19, 2008 the company announced that it has, through its newly established subsidiaries, Chongqing Gushan Bio-Sources Energy Co., Ltd and Hunan Gushan Bio-Sources Energy Co., Ltd, entered into agreements for the acquisition of land use rights to areas in ChongqingChongqingChongqing is a major city in Southwest China and one of the five national central cities of China. Administratively, it is one of the PRC's four direct-controlled municipalities , and the only such municipality in inland China.The municipality was created on 14 March 1997, succeeding the...
and HunanHunan' is a province of South-Central China, located to the south of the middle reaches of the Yangtze River and south of Lake Dongting...
, respectively, for the construction of biodiesel facilities in order to expand its production capacity.