China may be considering a new energy policy that would encourage use of ethanol in an effort to clean up ever-poorer air quality, the Financial Times reported. Fabrizio Zichichi, head of ethanol at commodities trader Noble Group, said he was told by Beijing policy-makers that the country could set a target by the end of the year to boost the share of ethanol in the country's energy mix. The move could signal important political support for investment in biofuel. Ethanol is a clean fuel made from agricultural products. China is the third-largest ethanol producer in the world behind the US and Brazil, and uses mainly corn, cassava and sweet-potatoes to make it. Eight provinces have made E10 fuel, a mixture of 10% ethanol and petroleum, mandatory in gas stations.