China Wednesday announced new policy support for clean energy with efforts to improve natural gas supplies and moderately promote the use of ethanol as a renewable biofuel.

An executive meeting of the State Council chaired by Premier Li Keqiang decided to establish and expand a diversified natural gas supply system that better coordinates energy sources from home and abroad, including improved storage and transfer infrastructure.

More measures will be rolled out to encourage investment in natural gas exploration and support the transfer of mining properties in a market-oriented manner, according to a document released after the meeting.

China also vowed stable natural supplies in heating seasons, in particular, to meet the demand from urban residents and pollution-haunted areas that count on the clean energy to replace dirty coal.

Ethanol fuel will also be developed in a measured way in part to consume excess grain stock. Another 15 regions including Beijing and Hebei will initiate pilots on ethanol gasoline this year, following earlier programs in 11 regions.