Wendy Zhang/ Shanghai Daily news

The Shanghai Coking & Chemical Corporation (SCCC) yesterday announced the successful production of clean energy dimethyl ether (DME) to replace the diesel used in the city's 15,000 buses, which will also lead to annual savings of over 300 million yuan (US$37.5 million) on fuel.
DME, extracted from coal, natural gas or even household waste, does not pollute the environment when burnt. For China, with a lack of oil and gas resources but plenty of coal, DME is a good substitute.
China's first DME-fueled bus became operational on May 16 last year, and this year the city is focusing on the DME-fueled vehicle project, with the first such bus route to be in operation by the end of the year. More than 1,000 such buses are expected to be running by the time of the 2010 World Expo.
SCCC can currently produce 5,000 tons of DME a year, enough to supply hundreds of diesel-fueled buses. It can expand its production to meet the expected growth in demand.