China has officially approved the use of methanol as a motor fuel as part of the nation's efforts to boost energy security and reduce crude oil imports.

A standard for the use of M85 methanol-based fuel for automobiles will take effect on 1 December, state-run Xinhua News Agency reported earlier this week.

Similar to the E85 standard in the US, M85 has a methanol content of between 70 and 95 per cent, with gasoline comprising the remainder. Vehicles need to be retrofitted with a different engine to use M85.

However, a standard for M15 fuel – which has a 15 to 20 per cent methanol content and does not require motor retrofitting – is expected to be approved in the “near future”, according to Xinhua.

The move will help support China's methanol industry, which is the world's largest. In addition to being the leading global producer of the chemical, China is also its biggest consumer, using it mostly for the production of formaldehyde.

However, methanol's use as an alternative motor fuel has grown over the past two years, due in part to a push by China's authorities. Many taxi and bus fleets run on high methanol blends, while low-level blends are available at petrol stations in large parts of the country.

In an attempt to raise consumption at the public level, provincial and municipal governments in August launched a subsidy of around US$370 to help pay for vehicles to be retrofitted to burn methanol-blended fuel.

Additionally, a new line of "dual-fuel" cars - that can run on either pure methanol or gasoline – is being planned by Zhejiang Geely Holdings Group. In May, the Chinese automaker said it aimed to start mass production of a dual-fuel version of its Haifeng sedan by year-end. Geely claims the vehicle, equipped with a 1.5 litre, four-cylinder engine, would use 40 per cent less fuel compared to conventional cars.

China is keen to promote methanol as a "clean" alternative fuel, with advocates claiming it leads to lower tailpipe emissions. However, the fuel typically has about half the energy content of gasoline and about 70 per cent of the feedstock for the domestically-made chemical comes from China's abundant coal reserves, according to data compiled by Energytribune.com. It also costs around US$260 per ton to produce, compared to the US$150 per ton for methanol made from natural gas.

In addition, methanol is highly corrosive, with a tendency to deteriorate non-synthetic and natural rubber fuel system parts, while its emissions have a high proportion of formaldehyde.

Nonetheless, China sees methanol as a viable, locally produced fuel source which could help reduce its oil imports, while bolstering the nation's coal industry.

In 2006, the leaders of eight coal-producing provinces in China submitted a report titled Suggestion on Promoting Methanol Fuels to Replace Gasoline and Diesel Fuel to the national government. The proposals were accepted by president Hu Jintao, who instructed the National Development and Reform Commission, the country’s economic policy-making body, to explore the use of methanol fuels.