Gushan opens Shanghai biodiesel plant

NEW YORK - Gushan Environmental Energy Ltd (NYSE:GU), China's largest producer of biodiesel as measured by annual production capacity, today announced that its Shanghai plant had commenced production on June 28, 2008, adding 50,000 tons to the company's annual biodiesel production capacity. With the addition of the Shanghai plant, Gushan's annual biodiesel production capacity has now reached 290,000 tons.

To remain at the forefront of China's biodiesel industry, Gushan plans to continue expanding its production capacity. In addition to opening the new Shanghai plant, Gushan plans to open biodiesel plants in Chongqing and Hunan, each with initial targeted capacities of 30,000 tons per year, and expand the capacity in Beijing by 50,000 tons in the fourth quarter of 2008. With its existing five production facilities, located in the Sichuan, Hebei and Fujian provinces and Beijing and Shanghai, Gushan's aggregate annual biodiesel production capacity is 290,000 tons. Gushan targets to increase its annual biodiesel production capacity to 400,000 tons by the end of 2008.

About Gushan Environmental Energy Ltd

Gushan Environmental Energy is China's largest producer of biodiesel, as measured by annual production capacity. The company produces biodiesel from vegetable oil offal and used cooking oil, plus the following by-products: glycerine, plant asphalt, erucic acid and erucic amide. Gushan sells biodiesel directly to users, such as marine vessel operators, as well as to petroleum wholesalers and individual retail gas stations. The company currently operates five production facilities in the Sichuan, Hebei, Fujian provinces and Beijing and Shanghai with a combined annual production capacity of 290,000 tons. The company targets to increase its annual production capacity to 400,000 tons by the end of 2008 with the expansion or addition of new production facilities in Beijing, Shanghai, Hunan and Chongqing.