Ethanol is widely used together with gasoline to power motor vehicles in some of China's major grain producing provinces, according to an official at the National Development and Reform Commission.

Liu Tienan, director of the industrial department of the commission, said a mixed fuel of ethanol and gasoline has covered more than 80 percent of the local markets in northeast China's Helongjiang, Jilin and Liaoning Provinces and central China's Henan Province. In Jilin, nearly 800,000 tons of such fuel was sold last year, he said.

"As an environment-friendly fuel, alcohol has bright prospects in oil-hungry China as international oil prices continue to rise," said Liu.

Liu said that the Chinese government will try to ensure a stable grain supply to guarantee alcohol production.

"It is a strategic move to promote the use of alcohol on cars, but it's a complicated project."   

(Xinhua News Agency March 18, 2005)