www.chinacleanenergyinc.com

Safe Harbor Statement

This presentation contains forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in our documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities.

Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved and these statements will prove to be accurate. Important factors could cause actual results to differ materially from those included in the forward-looking statements.

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Corporate Overview

Products:

Specialty Chemicals: high quality commercial products from renewable resources

Biodiesel: began production in 2005; sell to regional service stations

Facilities:

Jiangyin Plant: within 2 km of seaport - a key competitive advantage• Can produce 40K tons of specialty chemicals

and 50K tons of biodiesel

Fuqing Plant: 311,000 square feet ISO- certified production facilities• Most equipment transferred to Jianqyin Plant in

3Q10 – except printing ink production line

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Equity Snapshot

Ticker Symbol:

CCGY

Stock Price (7/13/2011):

$0.79

Market Capitalization: $25.2

mil

TTM Revenue (Q1 2011) : $67.3

mil

TTM Net Income (Q1 2011): (1) $8.9

mil

TTM EPS (Q1 2011): (1)

$0.28

P/E: 2.8x

Cash / Share: 71%

Note: (1) Primary, based on current share count of 31.5 mil

Source: Capital IQ, Company SEC Filings

Book Value / Share $1.36

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Corporate History

1995

Nov 2006

Revenue reached $16 million for FY2009 Dec 2009

Key Milestones

Completed a $15 million private placement to finance the Jiangyin Plant

Jan 2008

Commenced production of biodiesel fuel using proprietary technology.

Dec 2005

Completed reverse merger and was listed on the OTC Bulletin Board

Offshore

Onshore

100％

China Clean Energy Inc

100％

China Clean Energy Resources Limited (BVI)

Fujian ZhongdeTechnology Co., Ltd.

100％

Fujian ZhongdeEnergy Co., Ltd

Corporate Structure

Sep 2010Transferred equipment to the new Jiangyin Plant

Jan 2010Launched commercial production at Jiangyin plant

Dec 2010Revenue reached $59 million for FY2010

Revenue growth achieved 77% Y-O-Y in Q1 2011 Mar 2011

Founded in Fujian Province, China, to produce environmentally-friendly specialty chemicals

• New plant provides 3x more specialty chemicals and 4x more biodiesel capacity

• High margin dimer acid (29% of sales) and high-performance adhesives growing rapidly

• Exports sales further diversifies and strengthens customer base

• Specialty Chemicals - provides a flexible and diversified alternative to petroleum-based products

• Biodiesel - provides a platform for growth driven by energy security needs and environmental concerns

Diversified Revenue and Customer Base

New Plant Capacity Enables Optimal Product Mix and Expanding Margins

Highly Experienced and Committed Management Team

Company Fundamentals

• Company has been in operation since 1995• Founding partners run day-to-day operations• Officers and directors own 32% of shares

Diversified Revenue Base

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Products

Specialty Chemicals

Biodiesel

1Q’11

Domestic

Exports

Revenue and Market Breakdown

Markets

Synergy in resource utilization enables CCGY to reduce its business risk while exports further diversifies its customer base

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18%

82%89%

19%

FY’10

Biodiesel

Specialty Chemicals

11%

81%

FY’10 1Q’11

Exports

16%

84%Domestic

Ramp-up of capacity at new plantStrong growth of higher margin products such as high-purity dimer

acid and high-performance adhesives

Financial Highlights

Revenue of $59.0 MM vs. $15.9 MM in 2009

Operating income of $10.2 MM vs. $0.9 MM in ‘09

Adjusted net income of $7.8 MM and EPS of $0.25

Guidance for FY 2011

Expect revenue in fiscal year 2011 to reach approximately $75 millionExpect operating income to reach approximately $14 million

Highlights for FY 2010 and Q1 2011

Strong Revenue Growth Continues

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FY 2010 Q1 2011

Revenue of $19.0 MM vs. $10.7 MM in Q1 2010

Operating income of $3.6 MM vs. $1.0 MM in 1Q10

Adjusted net income of $2.7 MM and EPS of $0.09

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China’s specialty chemicals sector is expected to grow faster than the economy as a whole, with some sectors experiencing 20-30%+ growth

Commercial complexity is increasing to include product technology, customization and innovation; these also serve as barriers to entry for smaller companies

Large multi-national specialty chemical firms have found a lucrative base in China while consolidation of smaller companies is likely over the long-term

After spurring industry growth, the Chinese government could impose stronger environmental regulations over time.

Foreign investment has been substantial in China’s specialty-chemicals sector led by Hong Kong, US, Japan, Singapore and South Korea due to China’s growth potential

Green innovation via sustainable production is a growing trend – creating quality products while minimizing toxins and emissions so as to preserve the environment

Specialty Chemicals: Market Overview

Market Size‘000 Metric Tons

China

Rest of the World

Source: Company estimates

China

Outside of China

Underlying Growth% per annum

Specialty Chemicals:Market Size and Growth

3 Million Metric Tons

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Specialty Chemicals: Revenue Composition

Specialty chemicals are used in such diverse industries as textiles, construction and electronics.

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2010 FY Total revenue = $59 MM 2011 Q1 Total revenue = $19 MM

Dimmer Acid

Properties: Good stability, solvent releasing capacity and good resistant to bending, good glossiness, good adhesive force and good resistance to gel.

Applications: Used in printing industry to produce solvent type printing ink for soft plate, surface printing ink for plastic and hot-melt adhesive. It can work with pigment and filler to produce bright and brilliant colors.

Properties: A light yellow thick liquid with stable properties, non-toxicity, non-volatility, high flash point, high ignition point, and good adhesion.

Applications: Used in alkyd resin, polyamide resin, ink, coating, or as adhesive, for textile detergent, surfactant for lubricant and antirust oil, and food additive.

Polyamide Resins

Specialty Chemicals: End-User Applications

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Instead of speaking of number lets see why our products were successful and future growth

Hot Melt Adhesive

Printing Ink and Coatings

Specialty Chemicals: End-User Applications

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Properties: Transparent, light yellow viscous solid, non-toxic, soluble in most organic solvents, non-soluble in water. It has good mechanical, fluidity, tenacity and high adhesion strength.

Applications: Used for the adhesion of heat-shrinkable material, and in packing, fabrics, leather, lumber, plastic, metal, ceramics, and electric appliances, electronics, among others.

Applications: Used for gravure surface printing, gravure inner printing and flexible typographic printing on plastic, aluminum foil and paper.

=== Expanding Customer Base

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1. Including NYSE: APD, NYSE:TOT

Number of Customers Customer Size

48

2422

$100K ~ 500K $500k ~ 1Million $1 ~ 5 Million

Biodiesel Segment Opportunity

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Increasing car ownership in China should augur positively for biodiesel demand

Growth of Cars in China (Millions)

Source: Carnegie Endowment; Institute for Energy Research, Cars by M.Chamon, P.Mauro and Y.Okawa (of IMF and Univ. of VA)

2010 2020 2030 2040 20500

100

200

300

400

500

600

700

800

900

China Developed Economies

Biodiesel a Key Fuel to Managing Vehicle Growth

Between 2000 and 2010, China’s car fleet grew by 20x with 20 MM vehicles expected to be sold in 2011.

China is projected to increase its proportion of cars relative to all developed economies from 10% in 2010 to 37% in 2030 and 66% in 2050.

China to lead the world in car sales for the third straight year, to be mainly run on oil-based fuels.

Sustainable biofuels is a key policy tool to manage China’s growing vehicle fleet; fits within current infrastructure

Biodiesel and Diesel Demand Forecast (Million Tons)

Biodiesel Segment Opportunity

Biodiesel is compatible with existing industrial capacity and can immediately address China’s energy security needs.

Source: US Dept. of Energy; BP Statistical Review, National Biodiesel Board, IEEJ, IEA 16

Biodiesel Fundamentals and Benefits

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10

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20

0

50

100

150

200

250

300

350

400

2007 2010 2020 2030

Diesel Forecast (LHS) Biodiesel @ 5% Blend (RHS)

Reduction in harmful emissions; US Dept. of Energy study showed 78% drop in carbon dioxide emissions

Higher flash point than petroleum diesel which makes it safer to handle

Tends to be more biodegradable than petroleum diesel; B100 eliminates all sulfur emissions relative to conventional diesel

Can be used in any diesel engine without modification whether in B100 or B20 form

Oil Dependency

Biodiesel Segment Opportunity

Source: Biodiesel 2020: A Global Market Survey 17

China’s Bio-fuel Markets and Targets

China may have to import 75% of its needs to meet its

oil requirements by 2030

By 2020:

Target is to replace 15% of China’s transportation energy needs

Target is to produce 12+ million tons of biofuels

Plans are to install two 500 MW Coal-Fired power plants every week for the next 10 years

Oil dependency and the environment are key concerns driving energy policy in China … renewable energy is targeted to represent 15% of energy consumption in China by

2020.

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Edible Oil Consumption in ChinaMillion Tons

There is an ample supply of waste edible oil which may also be supplemented by imported palm oil waste

(source: Datamonitor Aug/2007).

CAGR: 6.5%

Waste Oil Supply Availability

Feedstock Procurement Strategy

• China Clean Energy’s multi feedstock technology allows use of palm oil waste in its production process

• We continue to evaluate the possibility of importing palm oil waste to diversify our feedstock supply

• We are also evaluating opportunities to acquire an upstream feedstock supplier to capture additional margin along the value chain as well as to protect margins over the cycle

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Proprietary technology allows China Clean Energy to use lower cost waste vegetable oils to produce an array of products

Production Technology

Waste grease

Oleic acid

Vegetable asphalt (fuel oil)

Stearic

Dimer acid

Monomer

Biodiesel

High purity Dimer acid

Polyamide resin

High performance polyamide hot melt Adhesive

Printing ink

ISO Stearic

Heating Esterification Dealcoholization

Methanol

Separator Alcoholysis

Glycerol

DealcoholizationSeparatorWashing and DryingBiodiesel

Hogwash oilPalm oilMethanolAcid catalysisB

iod

ies

elS

pe

cia

lty

Ch

emic

als

•Build strong brand recognition for its environment-friendly specialty chemicals segment

•Expand offerings of high-end specialty chemicals that target import substitution

•Plan for additional plant capacity to meet projected demand

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Specialty Chemicals Biodiesel

Company Growth Strategy

•Capitalize on strong demand for transportation fuel in China

•Take advantage of favorable government policies supporting the adoption of clean energy

•Acquire upstream feedstock sourcing so as to secure supply

•Develop alternative markets such as power generation

Synergy derives from the development of a new generation of bio-refinery products that have economic and environmental benefits

Pro-Forma Production Capacity

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Bio

die

se

l

50,000

Capacity in TonsAvg. Selling

Price ($/Ton)*

$814

Revenue Potential ($Million)

$40.7

Sp

ec

ialt

y

Ch

em

ica

ls

40,000

Capacity in TonsAvg. Selling

Price ($/Ton)*

$1,741

Revenue Potential ($Million)

$69.6

We expect to maintain specialty chemicals capacity at close to 100% for 1H2011

Additional capacity at Jiangyin plant of 20K tons possible at an est. cost of $6-8 MM

Additional expansion potential at Fuqing plant to meet demand

* Q1 FY2011 actual prices

Note: These are pro-forma calculations and are not provided for guidance purposes. Actual results will depend on market conditions as well as other risk factors detailed in fillings with SEC and available from http://www.sec.gov.

Gross Profit Net Revenue

Operating Profit Net Income

Key Performance Metrics

* Note: Excluding change in fair value of warrant and stock-based compensation, and impairment charges 22

269%

10x

*

*

321%

340%

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Balance Sheet Summary

Source: SEC filings

31-Dec-08 　 31-Dec-09 　 31-Dec-10 31-Mar-10

　 Audited 　 Audited 　 Audited Unaudited(In $ millions) 　 　 　 　 　 　 　Assets 　 　 　 　 　 　 　Cash & Cash Equivalents 　 $2.90 　 $4.15 　 $13.65 　 $17.73

Account Receivables 　 $1.10 　 $1.77 　 $4.08 　 $3.26

Inventories 　 $0.80 　 $0.46 　 $2.12 　 $2.82

Current Assets 　 $5.10 　 $6.59 　 $21.51 　 $24.90

Total Assets 　 $33.00 　 $36.64 　 $52.09 　 $55.11

　 　 　 　 　 　 　 　Liabilities 　 　 　 　 　 　 　Short-term Debt 　 -- 　 $3.08 　 $1.03 　 $6.01

Current Liabilities 　 $1.10 　 $3.72 $6.32 $10.63

Long-term Debt 　 $0.20 　 -- 　 $4.23 　 --

Total Liabilities 　 $1.10 　 $4.98 　 $12.75 　 $12.40

　 　 　 　 　 　 　 　Total Stockholders' Equity 　 $31.90 　 $31.66 　 $39.33 　 $42.71

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We announced a one million share repurchase on May 16th; the account in the US is fully funded and to date, we have repurchased shares opportunistically.

We are seeking two highly qualified individuals to join the Board of Directors as independent directors – and hope to announce their appointment by the end of July.

We will seek to increase China media and analyst coverage; website to be kept current with photos and video and operational developments.

The Company’s stock price is trading at levels we think is undervalued:

Cash is 71% of share price Market Cap / NAV of 0.66x Market value / book value of 0.58x EV / EBITDA of 1.03x

Going forward, will continue to engage in best practices regulatory and disclosure procedures. Will also seek to provide additional due diligence information so as toinspire more confidence in the Company and differentiate it as distinct from the currently challenging environment of the space.

Capital Markets – Confidence Building Measures

• High margin growth driven by its diversified customer base, consumption / export growth in China, and new plant and geographical base

• Innovative technologies and resourcing serve as an early-mover / clean fuel alternative to unsustainable levels of imported foreign oil

• Oil price volatility, global warming and sustainability issues are driving demand for specialty chemicals and biofuels derived from renewable resources

Diversified Revenue and Customer Base

SpecialtyChemicals

Biodiesel

ValueProposition

Investment Thesis

• Proprietary technology and expertise in renewable resourcing and the development of high-margin specialty chemicals and biofuels

Macro-thesis

Investment Thesis

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Tai-ming Ou, Chairman and CEO• Co-founded the Company in 1995. Prior to forming China Clean Energy, Mr. Ou was the

Director of General & Administrative Office of Fuqing First Secondary School. Mr. Ou was also in charge of a factory operated by the school. He is a licensed senior economist and has a Bachelor’s Degree in Mathematics from Fujian Normal University.

Ri-wen Xue, Chief Operating Officer• Joined as Production Manager in 2000 and was promoted to Vice General Manager of

Operations in December 2003. Mr. Xue was formerly a Director of Credit at Commercial and Industrial Bank of China and an engineer at CMOS Chip Copperize Corp. in Japan (fluent in Japanese). He holds a Bachelor’s Degree in Finance Administration from Jimei University.

William Chen, Chief Financial Officer• Joined China Clean Energy as the Vice President of Investor Relations in December 2009 and

was appointed CFO in February 2010. Mr. Chen was formerly a financial analyst at Wealth Transition Planning LLC, a financial services firm in New York. Prior to that he was a director assistant in EKN Financial Services. Mr. Chen holds a Bachelors Degree in Finance and Investments from Baruch College and is working towards an MBA degree.

Yun He, Senior Vice President of Sales and Distribution• Mr. He participated in the initial financing efforts and was promoted to Deputy General

Manager - Sales & Distribution in December 2003. Mr. He is a former resident and international trade executive in the former Soviet Union and Czechoslovakia.

Management Team

Management Team @ New Plant

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Jiangyin Plant: Recent Photos

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China Clean Energy’s new 90,000 ton plant has the flexibility to produce specialty chemicals and/or biodiesel to diversify business risk.

Jiangyin Plant: Recent Photos

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Contact Information:

China Clean Energy Inc.William Chen, CFOPhone: +1 (347) 235-0258 Email: william.chen@chinacleanenergyinc.com

IR Agency: CCG Investor RelationsDavid RudnickPhone: +1 (646) 626-4172Email: david.rudnick@ccgir.com

Thank You!

Auditors: Friedman, LLPEddie Wong Phone: +1 (212) 842-7640 Email: ewong@friedmanllp.com

SEC Attorney: Haynes and Boone LLP Rick WernerPhone: +1(212) 659-7300 Email: rick.werner@haynesboone.com

This Presentation of China Clean Energy was developed by the Company and CCG and is intended solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information available to the public, as well as other information from sources which management believes to be reliable, but is not represented by China Clean Energy or CCG as being fully accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.

China Clean Energy Website www.chinacleanenergyinc.com