China to test methanol vehicles in three regions

China will start a trial run of methanol-fueled cars in northern Shanxi and Shaanxi provinces and eastern Shanghai city to evaluate the safety of the vehicle and the alternative fuel, an official newspaper reported on Wednesday.

The government aims to complete the evaluation, which also includes reviewing applicability, reliability, economic viability and environmental impact, in two to three years and establish relevant industry standards, the People's Daily reported, citing an unnamed official with the Ministry of Industry and Information Technology.

The move, the first organized by the central government, would be a necessary step before China considers widening the application of the alternative fuel to a larger region.

Some local governments had ventured into the methanol vehicle sector since the 1980s but progress was slow amid public concerns over the safety of burning the fuel.

"The main purpose of the trial run is to test the safety of the vehicle and the fuel ... and the test will be restricted in specified areas by using specific fuels on specific vehicles," the official was quoted as saying.

China has relatively ample coal reserves, but its limited oil deposits have curbed oil production, forcing the world's second-largest oil consumer to increasingly rely on foreign oil to meet demand.