Science and Technology Prize Award

 01 May 2014

China New Energy Limited

("CNE" or "the Company")

Awarded First Prize for Science and Technology Improvement

The Board of CNE (AIM:CNEL), the AIM quoted engineering and technology solutions provider to the bioenergy sector, is pleased to announce that its wholly owned subsidiary, ZKTY, has won the China Alcoholic Drinks Association's ("CADA") 2013 annual award for Science and Technology Improvement. The recognition has been received in respect of the Group's patented Five-Tower Two-stage Differential Pressure Distillation Equipment & Process for Superfine-grade Edible Alcohol technology (Patent Number ZL 2007 1 0030550.8).

The technology was designed for ZKTY's client Jilin Province New Tian Long Wine Co., Ltd and installed at their commercial distillery that has a production capacity of 120,000 t/y of edible alcohol. The edible alcohol is blended with other products and bottled and sold in the alcoholic drinks market across China.

CADA monitored the technology's enhanced energy efficiency over an 8-month period to determine its energy saving and associated environmental benefits, and CADA determined that:

1. A substantial decrease in the consumption of water, electricity and gas resulted in an annual saving of RMB7.6 million (c. £760,000) in operating costs per year.

2. An increased efficiency in the treatment of wastewater, reducing chemical oxygen demand ("COD") by 72%.

3. A production capacity increase of 20,000t/y to 140,000t/y resulting in an increase in like for like revenue of RMB120 million (c. £12 million).

Mr. Yu commented "We are delighted to win this award as it highlights our in-house core competencies, capabilities in energy efficiency technology and our success in striving for continual improvement. We believe the potential increase in capacity will be of great interest to less efficient plants which are struggling in the current market and, in proving our technology further, help us win contacts in both the potable alcohol and fuel-alcohol (ethanol) markets".

For further information, please visit www.chinanewenergy.co.uk or contact: