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China plans investment in biofuels

BEIJING, Jan. 26 (UPI) -- China plans to replace one-quarter of its refined oil with liquid biofuels.

The Chinese government announced a plan to develop liquid biofuels to meet this ambitious goal by 2020, the Xinhua news agency reported.

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Ethanol and biodiesel research and development in rural areas will be the focus to cut use of refined oil by 10 million tons, a senior official said Thursday.

"Biofuels could solve the country's energy shortage and ensure national energy security," said Shi Yanquan, deputy director of the Ministry of Agriculture's department of science, technology and education.

China is the world's No. 3 oil importer after the United States and Japan. It imported 36.38 million tons of refined oil in 2006, a 15.7 percent increase from 2005. The rapid economic growth, 10.7 percent is requiring the country to import more oil.

Shi said the biofuels industry will use crops and waste from rural areas to produce the fuel to help meet the country's growing energy demands as well as boost rural economy.

The government said it will also look into developing methane, compressed stalks for burning and oil-rich crops in the rural areas in the next five to 10 years, Shi said.

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