China plans to roll out the use of ethanol in gasoline across the country by 2020, state media reported on September 13 citing a government document issued by 15 central ministerial departments, in a push to accelerate fossil fuels to clean energy.
Ethanol gasoline, also known as E10, refers to gasoline that is blended with 10% of ethanol by volume.
The vigorous promotion of the new car fuel to all over the country by Chinese government comes as one of efforts to combat increasing smog issues, which enveloped northern region especially in winters.
"Ethanol gas can effectively reduce automobile emissions as it has higher oxygen content and help gas with full combustion," said a governmental official.
Data shows among the proportion of E10 emission, carbon oxide, carbon bioxide, hydrocarbon are respectively 1.8%, 2.4% and 12.9% less than what're in common gas emission.
This news has also greatly boosted confidence inside the agricultural industry. The government said late last year it would aim to double ethanol output by 2020 amid growing pressure to whittle down mountains of ageing corn in state warehouses.
China built up state corn reserves estimated at about 200 million tonnes, equivalent to a year of demand, following a now discontinued government stockpiling scheme that was aimed at supporting farmers.
The September 13's document said the government also aims to have large-scale domestic production of cellulosic biofuels, which are made from sources such as grasses, trees and crop waste, by 2025.
The effort to promote the country's fledging biofuel consumption will also relieve China's dependence on oil import. Data shows 69.39% of the country's crude oil comes from other countries over January-July.
On September 9, the government said it has begun studying when to ban the production and sale of cars using traditional fuels.
The new policy will also benefit domestic coal chemical industry. Currently, there are two major ways to get ethanol, one of which is coal to ethanol.
China's gasoline output totaled 129.32 million tonnes in 2016, according to statistics data, fuel ethanol demand was deducted at 12.93 million tonnes on the basis of 1:10 proportion. Apart from output produced from corns, there were about 10-million-tonne-demand space for coal chemical industry.
China's use of renewable-based fuel lags the rest of the world, with only 3 million tonnes consumption in 2016, or less than 1% of total fuel use, the official added.
China is currently the world's third-largest ethanol producer, but with output of about 2.1 million tonnes a year, production is a long way behind global leaders Brazil and the United States.
(Writing by Alex Guo Editing by Harry Huo)
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