16th Oct 2015 08:33
LONDON (Alliance News) - China New Energy Ltd shares soared on Friday after it said it will sign a new deal with its existing partner to develop a cassava to bioethanol plant in Zimbabwe.
Although the company intends to enter the deal, it said the media has incorrectly suggested it has already signed an agreement and clarified a deal will signed imminently.
China New Energy shares were up 85% to 1.34 pence per share on Friday morning.
The company said its partner, Sunbird Bioenergy Ltd, has signed a deal with the government of Zimbabwe to develop a 120.0 million litre cassava to bioethanol plant in the Machonaland Central Province of the country. On Friday, China New Energy said it is not currently involved in the deal.
Cassava, also known as tapioca or arrowroot, is a woody shrub found in tropical climates that can be converted into bioethanol, which is principally used as a substitute for petrol.
"It has been erroneously reported in the media that China New Energy has also entered into the agreement. Whilst China New Energy is not currently a party to the agreement, it is expected that China New Energy will enter into an memorandum of understanding with Sunbird shortly," it said in a statement.
China New Energy said it intends to design the plant for the project and supply key fermentation, distillation and dehydration technology as well as providing commissioning and ongoing support and maintenance services.
The bioethanol plant will be designed using the Company's proprietary cassava to ethanol technology that has been successfully commissioned, and is now fully operations, in Thailand.
"It is the intention of Sunbird and China New Energy to complete the project design by February 2016 with an independent company completing an environmental impact assessment. Financial closure for the project is anticipated in Q1 2016, with the project being commissioned in late 2017," it said.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
CNEL.L