The Ministry of Industry and Information Technology confirmed that the proposal to evaluate the usage of methanol automobile fuel has been officially approval, a local news daily reported on 6th February. The city of Jinzhong in Shanxi province has been selected as the testing site.

The legislation will first focus on public transit vehicles, especially methanol-powered buses. The Shanxi Province Economic and Information Technology Committee has previously agreed to coach maker Yutong's offer to supply 100 methanol-powered buses for use in Changzhi's public bus fleet.

According to statistics, a total of 5,656 new energy buses were sold in China last year, up 3.72 percent from 2011. Medium and large buses are one of the major drivers for new energy vehicle technology in the country, with those powered by methanol especially well-received. The demand for methanol in the Chinese market is expected to reach 100 million tons in 2020.