SASKATCHEWAN, Canada, Jan. 28, 2011 /PRNewswire/ -- Clean Power Concepts Inc. (OTC Bulletin Board: CPOW) and its subsidiary General Bio Energy Inc., announced today that it has signed a Memorandum of Understanding ("MOU") with the Chongqing Grain Group Co., Ltd. ("CGG") of China.
The MOU creates a new Joint Venture ("JV") that has as the stated objective to explore the feasibility of jointly building and managing a 600,000 metric ton (MT) food canola crush plant located in Western Canada.
CGG agrees to commit to purchase all oil output/off-take of the JV. CPOW will purchase all meal output/off-take of the Joint Venture. CPOW will secure required input seed from western Canadian producers by contracting with producers to provide the input required for the Joint Venture. The JV has agreed to appoint CPOW as the Manager, with responsibility for the design and construction of the crush plant. The plant will be constructed in compliance with Canadian legal, environmental and safety rules, regulations and statutory requirements. The signatories to the MOU were Mr. Shenher, CEO of Clean Power and Mr. Hu, Secretary of the Party Committee and President of Chongqing Grain Group Co., Ltd. The final structure of the JV has not yet been determined, but CGG will be the majority owner.
Mr. Shenher commented, "Our partners in China have immediate demand for the planned capacity of the new Canola plant. The site while not yet selected will be situated close to railway transportation transit points available in Western Canada to ensure logistical efficiency. We are excited about the demand existing in China for canola oil and world wide for off-take canola meal. We look forward to a long successful future with our partners in China as we work to fulfill their demand."The Chongqing Grain Group Co., Ltd. is located in Chong Qing, municipality in China. The Group owns 51 subsidiaries and has 21,507 employees. Total assets of the Group have reached 6.1 Billion Yuan Renminbi ('RMB'), or approximately US$920 million. Clean Power Concepts and its subsidiary General Bio Energy are producers of Canola Oil, Canola Feed Meal, eco-lubricants, and nutraceuticals. The Company manufactures and markets products under CLEAN POWER CONCEPTS ®, MOPO ®, for more information www.cleanpowerconcepts.com CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION Safe Harbor Statement