Gushan Environmental Energy Limited (), is a

biodiesel Biodiesel is a form of diesel fuel derived from plants or animals and consisting of long-chain fatty acid esters. It is typically made by chemically reacting lipids such as animal fat (tallow), soybean oil, or some other vegetable oil with ...

producer in China that was incorporated on May 16, 2006. The Company produces biodiesel and by-products of biodiesel production, including

glycerol Glycerol (), also called glycerine in British English and glycerin in American English, is a simple triol compound. It is a colorless, odorless, viscous liquid that is sweet-tasting and non-toxic. The glycerol backbone is found in lipids known ...

, plant asphalt,

erucic acid Erucic acid is a monounsaturated omega-9 fatty acid, denoted 22:1ω9. It has the chemical formula CH3(CH2)7CH=CH(CH2)11COOH. It is prevalent in wallflower seed and other plants in the family Brassicaceae, with a reported content of 20 to 54% in h ...

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 ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...

Shanghai Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...

Mianyang Mianyang (; formerly known as Mienchow) is the second largest prefecture-level city of Sichuan province in Southwest China. Located in north-central Sichuan covering an area of consisting of Jiangyou, a county-level city, five counties, and thre ...

Sichuan Sichuan (; zh, c=, labels=no, ; zh, p=Sìchuān; alternatively romanized as Szechuan or Szechwan; formerly also referred to as "West China" or "Western China" by Protestant missions) is a province in Southwest China occupying most of the ...

province,

Handan Handan is a prefecture-level city located in the southwest of Hebei province, China. The southernmost prefecture-level city of the province, it borders Xingtai on the north, and the provinces of Shanxi on the west, Henan on the south and Shando ...

Hebei Hebei or , (; alternately Hopeh) is a northern province of China. Hebei is China's sixth most populous province, with over 75 million people. Shijiazhuang is the capital city. The province is 96% Han Chinese, 3% Manchu, 0.8% Hui, an ...

province and

Fuzhou Fuzhou (; , Fuzhounese: Hokchew, ''Hók-ciŭ''), alternately romanized as Foochow, is the capital and one of the largest cities in Fujian province, China. Along with the many counties of Ningde, those of Fuzhou are considered to constitute t ...

Fujian Fujian (; alternately romanized as Fukien or Hokkien) is a province on the southeastern coast of China. Fujian is bordered by Zhejiang to the north, Jiangxi to the west, Guangdong to the south, and the Taiwan Strait to the east. Its capi ...

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 is the breakdown of organic matter by microorganisms, such as bacteria and fungi. It is generally assumed to be a natural process, which differentiates it from composting. Composting is a human-driven process in which biodegradati ...

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 China Petroleum & Chemical Corporation (中国石油化工股份有限公司) or Sinopec (), is a Chinese oil and gas enterprise based in Beijing. It is listed in Hong Kong and also trades in Shanghai. Sinopec Limited's parent, Sinopec Gr ...

Cnooc China National Offshore Oil Corporation, or CNOOC Group (Chinese: 中国海洋石油总公司 Pinyin: ''Zhōngguó Háiyáng Shíyóu Zǒnggōngsī''), is one of the largest national oil companies in China, and the third-largest national oil c ...

and

PetroChina PetroChina Company Limited () is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation (CNPC), headquartered in Dongcheng District, Beijing. The company is currently Asia's largest oil and gas pr ...

Corporate governance

The

board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...

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.

Production capacity

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 established in 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

Chongqing Chongqing ( or ; ; Sichuanese dialects, Sichuanese pronunciation: , Standard Mandarin pronunciation: ), Postal Romanization, alternately romanized as Chungking (), is a Direct-administered municipalities of China, municipality in Southwes ...

and

Hunan Hunan (, ; ) is a landlocked province of the People's Republic of China, part of the South Central China region. Located in the middle reaches of the Yangtze watershed, it borders the province-level divisions of Hubei to the north, Jiangxi to ...

, respectively, for the construction of biodiesel facilities in order to expand its production capacity. *On October 17, 2012, the Company announced the completion of privatization of the stock("GU") and suspension of its ADSs trading on the New York Stock Exchange ("NYSE").

External links