Sino Clean Energy, Inc. to Add 750,000-tons of CWSF Capacity at Existing Guangdong Facility

XI'AN, China, March 24, 2011 /PRNewswire-Asia-FirstCall/ -- Sino Clean Energy Inc. (Nasdaq: SCEI) ("Sino Clean Energy," or the "Company"), a leading producer and distributor of coal-water slurry fuel ("CWSF") in the People's Republic of China ("China"), today announced that it has commenced construction on an additional 750,000 metric tons (MT) of annual production capacity to its existing 300,000 MT capacity plant in Dongguan, Guangdong Province. The Company expects to complete construction in August 2011.  

In order to meet the anticipated increase in demand from recently announced mandates and subsidies from the Dongguan government, Sino Clean Energy is building a new 750,000 MT CWSF production line at its existing production facility in Dongguan, bringing total capacity at the Dongguan facility to 1,050,000 metric tons, and a Company aggregate total of 1,900,000 metric tons. Total construction and equipment costs are expected to be approximately $13.6 million. Once construction is complete in August, the Company anticipates additional testing before ramping production in the fourth quarter of 2011. Management expects a payback period of approximately 2 years from this investment.

"We are pleased with the progress we have seen so far from our Dongguan facility," began Mr. Baowen Ren, Chairman of Sino Clean Energy. "After the 300,000 metric tons annual capacity coal water slurry fuel production line was successfully put into operation in Dongguan, Guangdong province this January, the yield and sales volumes have continued to increase rapidly. We have added new customers and overall demand has exceeded our expectations."

On March 2, 2011, senior management of the company was invited by the Dongguan Environmental Protection Bureau to attend the Clean Energy and CWSF Promotion Seminar. At this meeting, the Dongguan municipal government made several significant commitments to promote the use of CWSF.

1. It mandated that all coal-fired boilers below 4 steam ton/hour and 10 steam ton/hour with using life over 8 years must be renovated or eliminated by the end of Dec. 31, 2012. Over 1,000 industrial boilers in Dongguan do not comply with these standards.
2. To encourage the use of CWSF, the Dongguan municipal government will provide a subsidy of 40,000 RMB ($6,105) per steam ton, with a cap of 400,000 RMB ($61,059) per year.

Mr. Baowen Ren continued, "As the safest and the most economic clean energy source, CWSF has tremendous potential in China. In its 12th five-year plan, the PRC government will continue to support the development of clean coal technologies reduce carbon dioxide emission and increase energy yields. With the strong monetary and policy support from the Dongguan government, Sino Clean Energy will capitalize on this emerging opportunity. To date, the Company has five CWSF customers in Guangdong province under CWSF supply agreements totaling approximately 275,000 metric tons. The Company will continue to target large CWSF customers in Guangdong, as the province is one of the most economically developed in China. The province also holds the greatest amount of Small and Medium Enterprises (SME), and the largest consumer capacity for CWSF, in China."

About Sino Clean Energy

Sino Clean Energy is a U.S. publicly traded company and a China-based producer and distributor of coal-water slurry fuel ("CWSF"). With locations in Shaanxi Province and Liaoning Province, Sino Clean Energy is one of the leading CWSF producers in China. For more information about Sino Clean Energy, please visit http://www.sinocei.net.

Safe Harbor Statement

This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to uncertainties in product demand, the impact of competitive products and pricing, our ability to obtain regulatory approvals, changing economic conditions around the world and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Sino Clean Energy Inc.

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