On 7 July, 2006 the Venture applied to the Hami District Development Planning Commission for approval of its initial 20,000 ton annual production ethanol plant with a by-product of 18,500 tons of animal feed (DDGS). Approval of the Venture's application was received on 6 August, 2006. The incorporated name of the plant is Xinjiang Yajia Distillery, Co. Ltd. Pursuant to certificate dated 31 May 2006.

The site has an abundant supply of raw materials and also has available an extensive area of high quality farmland for future expansion of the agricultural raw materials resource base. The availability of skilled manpower for running and servicing the plant is also an asset of the Hami site.

Xinjiang province viewed from Google Earth

Hami region viewed from Google Earth

The Company broke ground for its Hami, Xinjiang Province plant on November 29, 2006. The ground breaking ceremonies were attended by the political leadership of both Hami and Xinjiang Province. The ground breaking ceremonies were widely covered by local and national Chinese electronic and print media reflecting the importance of the project to the region's economy.

Pictures from the ground breaking ceremony (CEO Leung)

With government officials:

The Hami Government has honored Tiger Renewable Energy, naming Tiger as the most important project for the Hami region for 2007. The company's evaluation of ethanol equipment manufacturers has been completed and a decision was made to purchase the equipment from the Shandong Feicheng Pyramid Group. At the same time as the evaluation process was going on, municipal workers and the Company's contractors completed construction on the first phase of promised infrastructure work including the power switches and transformer station, the geological site survey as well as water diversion works and other related projects.

Supply agreement for biomass

Xinjiang Yajia Distillate Company Limited, a Chinese entity of which the Company owns 90%, has entered into an agreement on the 7th of February 2007 with Xinjiang Yili Agricultural Division Supply and Sales Company (the "Xinjiang Yili Company"), a government-owned Chinese business, for supplies of corn to be used in the Company's planned ethanol manufacturing plant in Hami District. This agreement reduces the potential for uncertainty in the Company's bio-mass supply chain. In addition, the Company will benefit from having "grandfathered" operating license within China's evolving ethanol market.

The terms of the agreement provide that during the first period of five years that Xinjiang Yili Company will supply all the corn kernels necessary for its initial production level of 20 to 30 thousand tons of ethanol "at a formula price that results in a discount to the commodity market price".

Timeline and scope of the project

The development timeline of the initial Hami plant is expected to be approximately twelve to eighteen months from ground-breaking to production, with an additional eight months to achieve the full design annual production rate of 20,000 metric tons. At full capacity the plant is expected to employ a total of between 50 and 60 production and administrative workers.

To give a scope of the work involved, the building area of the first phase totals over 10,000 square meters, there are 21,000 square meters of road, 15,000 square meters of green area on over 100,000 square meters of land.

The company's intention after completing construction of its first manufacturing facility is to raise the production capacity of such facility to 100,000 tons per year. Thereafter the Company intends to proceed with the development of other manufacturing plants in other districts of China incorporating biomass choices reflecting the most efficient technologies that are also the least intrusive on China's food supply markets.

Tiger Renewable Energy will post new pictures on the homepage once there are new ones available from the construction progress in order to keep interested parties updated about our developments. New projects will also be listed on this page once Tiger Renewable Energy has entered into agreements for new biofuel production plans.