China Turns to Ethanol As Gas and Oil Reserves Dwindle

Replacements for China's oil and gas reserves must be found before oil and gas reserves exhausted in the next 30 years.

Published: 18-Dec-2001

HONG KONG (Reuters) - China is launching its first fuel ethanol plant in an innovative plan aimed at simultaneously bolstering security of energy supplies and improving farm incomes.

"We have to consider energy security...because China is short of petroleum," said Lu Tianxiong, director and senior engineer at Beijing Memsep Technologies Co Ltd.

Officials are acutely aware that China's known oil and gas reserves are running out. Domestic coal and hydropower are widely used for electricity generation. China produces about 163 million tonnes of crude oil a year, or 70 percent of its national needs, importing another 70 million tonnes, mainly from the Middle East.



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