China’s Shaanxi province to promote methanol-based fuel use

27 October 2009 07:55  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s northwestern Shaanxi province will encourage methanol-blended gasoline use from the second half of 2010 after the national standards for methanol-based fuel come into effect, a local government source said on Tuesday.

The Chinese government plans to implement the M85 national standard for methanol-blended gasoline from 1 December this year. The M85 blended fuel contains 85% methanol and 15% gasoline.

The provincial government is helping the private sector to set up required facilities, the source said.

Shaanxi Yanchang Zhongli New Energy Company, the only designated manufacturer of methanol-blended gasoline in Shaanxi province, is building processing facilities with a total capacity of 1.5m tonnes/year in seven cities of the province, according to the source.

Construction of two processing facilities, with capacities of 400,000 tonnes/year and 200,000 tonnes/year, had been completed last month and the facilities were undergoing test runs, the source said.

The company invested a total of yuan (CNY) 570m ($83m) in the facilities, which were expected to complete test runs before June 2010, the source added.

Products from the facilities would be supplied to the local market from the second half of 2010, the source said.

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By: Dolly Wu
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