China develops DME as an alternative energy source

China is to start construction of its largest dimethyl ether (DME) project with an annual output of three million tons to reduce rising oil consumption and meet soaring energy demands, People’s Daily reported. Located in Ordos city of north China's energy-rich Inner Mongolia Autonomous Region, the project will cost 21 billion yuan, Coal-based DME is a clean-burning alternative to liquefied petroleum gas, liquid natural gas, diesel and gasoline. The participants in the project include power giants China National Coal Group Corporation, China Petroleum and Chemical Corporation and the Shanghai-based Shenergy Group.