Chen Weiguo, secretary-general of the China Association of Alcohol and Ether Clean Fuels and Automobiles, said at the recent China Synfuels Summit.

    He also said another draft standard for methanol fuel which contained less than 15 percent methanol would be completed in the first quarter of 2008, and then it would be sent to the country's Standardization Administration for approval.

    "The standards will surely facilitate supervision over the current methanol market, and will define the way of methanol development in the future," said Rong Junfeng, a senior official with the China Petroleum and Chemical Corporation.

    Methanol, which can be derived from coal, coal bed methane and coke oven gas, has a wide range of resources in China, as more than 80 percent of the country's energy resources rely on the coal.

    Chen said the methanol fuel would discharge less greenhouse emissions while provide better power compared with gasoline.

    However, the 85 percent methanol fuel can be used only when engines are properly adapted, said an industry insider, adding: "We should let the market judge methanol's future."

    "It may be a good idea to pilot methanol fuel on public transporting systems, such as buses and taxis," he said.

    China has already manufactured automobiles with methanol engines. The Chery automobile company tried ten methanol cars earlier this year. Shanghai Maple plans to make 50,000 methanol cars next year.