SOURCE: New Oriental Energy & Chemical Corp.

September 09, 2008 08:00 ET

New Oriental Energy and Chemical Receives Two Financial Awards From Provincial Government for Its Synthetic Ammonia Energy Optimization Project and for Successfully Reducing Energy Consumption and Air Pollutants in Production Processes

Also Receives Bureau of Science and Technology Certification of Its R&D Efforts Furthering the Commercialization of DME; Anticipates Continued Strong Government Support in Developing Its Alternative Fuel Business

NEW YORK, NY--(Marketwire - September 9, 2008) - New Oriental Energy & Chemical Corp. (NASDAQ: NOEC), a specialty chemical and emerging coal-based alternative fuel manufacturer in The People's Republic of China (PRC), said today that provincial government authorities have certified the scientific advances made by the Company at its "DME Technical Research Center" which employs 80+ engineers engaged in leading edge projects, principally for the development of coal-based alternative fuels. Additionally, another key government agency has recognized the Company with an award of RMB 6.8 million (US $994,022) for successfully transforming the specialty chemical production systems for its core fertilizer and alternative fuel businesses to ones that optimize all elements in the process to reduce emissions as well as energy usage.

The same government agency also separately announced that New Oriental will receive a financial award of RMB 5.75 million (US $841,124) in 2008 based on the savings New Oriental has achieved in coal consumption as a consequence of the successful implementation of its synthetic ammonia project.

Mr. Chen Si Qiang, president and CEO of New Oriental Energy and Chemical Corp., stated, "We are very proud of the advances we have made in developing processes that permit us choices in the coal-based chemicals we produce and allow us to adjust to market conditions and optimize profits. We have further succeeded in making the production process cleaner and more energy efficient in line with the strong government push to reduce pollution and to conserve energy so as to achieve both economic and social benefits. Government recognition and support for our DME technology and our environmentally friendly production process should serve us very well as China increasingly becomes the world's largest user of DME as a less expensive 'green' substitute for LPG and diesel fuel."

According to the Company, the certification of its R&D facilities and technology by the Bureau of Science and Technology recognizes its achievements in creating a successful process for converting coal to either methanol or dimethyl ether (DME) and its ability to scale this process up to make it a commercial success. As such, as the Company continues to grow, it can expect further government support for its technology including, among other things, sharing of technical information on DME and DME derivatives, tax reduction and exemption benefits and bank loan assistance.

The RMB 6.8 million (US $994,022) award to the Company was made by the provincial Development and Reform Commission, for the Company's successful energy and pollution reducing optimization projects over the past four years in which the Company has invested more than RMB 80 million (US $11,689,274). These include its three-waste multi-fuel burner equipped with a 3000 Kwh steam turbine generator; its 600 ton coal-stick project; its swing pressure adsorption decarbonizing plant; a lithium bromide absorption type water chiller and the ammonia synthesis poly-generation project. The net result is a much cleaner, energy-saving production process which surpasses government goals and guidelines.

The Company expects that it will receive approximately 60% of the RMB 5.75 million (US $841,124) award from the Development and Reform Commission by the end of September, and the remainder in the December timeframe upon completion of the steam turbine aspect of the project. The amount of the award is based on payment by the government of RMB 250 for each ton of standard coal saved by the Company with the synthetic ammonia process. It is estimated that the Company saved 22,996.56 tons in 2007, or about 10% of what would have been its total consumption.

About New Oriental Energy & Chemical Corp.

New Oriental Energy & Chemical Corp. listed on the NASDAQ Global Market (NASDAQ: NOEC), is an emerging coal-based alternative fuels and specialty chemical manufacturer based in Henan Province, China. The Company's core products are urea and other coal-based chemicals primarily utilized as fertilizers. Future growth is anticipated mainly from its focus on expanding production of coal-based alternative fuels, in particular, methanol and dimethyl ether (DME), which is a cheaper, more environmentally friendly alternative to LPG for home heating and cooking, and diesel fuel for cars and buses. All of the Company's sales are made through a network of distribution partners in China. Additional information on the Company is available on its website at www.neworientalenergy.com.

Safe Harbor Statement

This press release may contain forward-looking statements concerning New Oriental Energy & Chemical Corp. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. New Oriental Energy & Chemical Corp. undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

Contact Information

  • Contact:
    Mr. Ben Wang
    Chief Financial Officer
    New Oriental Energy & Chemical Corp.
    Xicheng Industrial Zone of Luoshan, Xinyang
    Henan Province, The People's Republic of China
    Tel: (011-86) 10-6709-2670

    Investors:
    Mark Miller
    East West Network Group
    mmeastwest@hotmail.com
    Ph: (770) 436-7429

    Press:
    Ken Donenfeld
    DGI Investor Relations
    donfgroup@aol.com
    kdonenfeld@dgiir.com
    Ph: (212) 425-5700
    Fax: (212) 425-6951