Trial biodiesel production from a new plant, set up by China Biodiesel, at Xiamen in Fujian Province was started on Tuesday (3rd June). The start-up of the plant will double the company’s annual design capacity to 100,000 tonnes, nearly four times last year’s output.

China Biodiesel said that following progress so far this year the start of the new plant keeps it on target to meet market expectations for 2008.

Despite increases in vegetable and animal oil prices the company says it has maintained its successful move to higher margin output through the increased production of B1 and B2 biodiesels. It has also successfully secured new sources of raw material supplies from Indonesia, Malaysia and the Philippines, and is planning to open new offices in South East Asia to underpin its established supplies from domestic sources.

Chairman Huodong Ye said: "China Biodiesel continues to face the challenges confronting the world's biodiesel industry, but we are delighted to report strong progress with our further successful development in this increasingly important market.