China Energy Ltd. optimistic about DME prospects despite price fluctuation

BLUEFUELENERGY.COM: China Energy Limited, a Singapore-registered company with group offices in Linyi, Shandong, PRC, is China's leading DME producer with an output capacity of 900,000 metric tons per annum.

According to their most recent Financial Statement and Dividend Announcement, however, China Energy's ability to produce DME at full capacity may be restricted by lower energy prices for both DME and LPG resulting from the financial market turmoil worldwide and in the PRC, particularly since the price of DME is linked closely to that of LPG.

Despite these price challenges, China Energy believes that, even short-term, DME prospects in China are good and cite the VAT reduction on DME from 17% to 15% last year as a key indication that the PRC government is firmly behind DME as a means to reduce air pollution and as a prudent energy security initiative - important reasons that apply also to Blue Fuel, DME produced from renewable sources.

China Energy uses a patented stet technology called “Liquid Phase Compound Acid Dehydration Production Process”, which enables them to produce DME at lower temperatures and lower pressures, compared to more conventional DME production methods.