Good, clean growth needs good, clean funding. Coming up? Photo: AFP

China plans to expand the use of ethanol gasoline nationwide by 2020 and expand to commercial scale by 2025, the country’s state media Xinhua reported, citing a government announcement.

The move is to curb surging demand for imported oil and fossil fuel, as well as clean up smog-choked cities, the government said.

The plan calls for China to develop a demonstration facility by 2020 that can produce 50,000 tons of ethanol a year from cellulose, the report said. The government also aims to build an ethanol production base in the country’s northeast, the main corn production region, and achieve commercial scale by 2025.

“Ethanol in gasoline is an ideal alternative to fossil fuel,” an unnamed National Energy Administration official told Xinhua.

Prior to the announcement, the Chinese government has already been spending heavily to develop electric cars and has raised sales taxes on vehicles with larger engines to tackle the country’s expanding pollution problem, the report said.

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