The Chinese government is promoting the use of ethanol gasoline in a bid to reduce pollution and save energy.

Ethanol, extracted from grain and corn, is a form of alcohol used as a petrol additive. It makes up 10 per cent of the fuel blend, which could help reduce car emissions and remove deposits inside the engine.

Meanwhile, the use of ethanol gasoline can help balance the supply and demand of normal gasoline in China.

The State Development and Reform Commission says China will provide funds to match the ethanol gasoline price with that of normal gasoline.

It also notes that the amount of grain used to produce the fuel is less than one percent of national grain output, and will not result in any shortages.

(CRI November 15, 2004)