All Cars In China To Run On Ethanol By 2020, Says State Media
Ride out the mileage on your gas guzzler while you still can, Chinese car owners. Only a couple days after China announced that it would ban petrol and diesel vehicles, they now plan to roll out a nation-wide ethanol initiative by 2020 in an effort to both curb pollution and the nation's corn surplus.
According to Xinhua, all cars will run on E10, a biofuel with 10% corn. Currently, legal limits for biofuel are only mandated at a provincial level. Naturally, this news has caused biodiesel stocks to surge with Shandong Longlive Bio-Technology Co Ltd soaring 10 percent and COFCO Biochemical Anhui Co Ltd. skyrocketing 6 percent. Unsurprisingly, oil firms are going to suffer as a result.
China aims to ramp up it production of ethanol by building a production plant in the corn-growing Northeast region, and hopefully gain ground on the ethanol-producing powerhouses like the US and Brazil. The Middle Kingdom will also increase its use of the ethanol, an area where it lags behind the rest of the world with renewable fuel accounting for only one percent of its total fuel usage in 2016.
Here's hoping the new ethanol initiative will help curb the airpocalypse, which was recently found to cut three years off the lives of people living in Northern China.