Traditional ethanol production from corn or sugar cane competes with food supply, with China’s rising grain prices also posing a challenge

The world’s largest coal-based ethanol production plant has started test runs in southeastern China, state media reported.

The plant, which has an annual capacity of 600,000 tonnes, uses coal rather than crops as raw materials to produce ethanol – a petrol additive and valuable basic chemical. This is expected to ease the pressure on China’s food sources while reducing its dependence on fuel ethanol imports.

Ethanol is a clean, renewable energy source with a density similar to petrol. Anhydrous ethanol, with a concentration of over 99.5 per cent, can be blended with petrol to improve exhaust emissions and enhance fuel combustion performance.