China New Energy takes 24% in Hungary bioethanol project

China New Energy Ltd (LON:CNEL), or CNE, said today it has bought a 24% stake in a bioethanol project in Hungary, for which it is supplying proprietary technology.

CNE paid EUR 250,000 (USD 272,800) for the stake and has the right to further increase its shareholding to up to 50%.

Under a contract with Visontai Bioetanol Fejleszto Korlatolt Felelossegu Tarsasag, the Chinese company will design and construct the said biorefinery, alongside local partners. The contract value for CNE is about EUR 34 million, including EUR 11 million going to subcontractors.

Upon completion and start up in 2017, the plant will be producing 150,000 litres (39,600 gallons) of ethanol daily from corn, CNE said. Feedstock supply contracts have already been signed with Hungarian farmers and there is also a long term off-take deal for the ethanol with an unnamed international commodity trader.

(EUR 1 = USD 1.091)

Choose your newsletter by Renewables Now. Join for free!