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China will grant subsidy to bioenergy-producing companies when the international crude oil prices fall below the oil alternative's production cost and last for a long period.

The move is part of a package of measures released Friday to boost the development of the bioenergy sector and reduce the country's dependency on oil.

Bioenergy refers to ethanol, biochemical diesel and other products, which are made from plants and could be used as the driving power of engines.

According to the document from the Finance Ministry, promising a subsidy to the production company when international oil prices fall could ensure its sound development and attract more investment in the sector.

China also encouraged the utilization of unused land in mountainous area for planting raw materials of biochemical products, such as sorgo, corn and sweet potato.

Technology with wide application in the sector, such as developing ethanol from plants, will also be supported, said the document.

China has set the goal to bring the proportion of renewable energy consumption up to ten percent of the national total by 2010, according to the National Development and Reform Commission.

(Xinhua News Agency November 12, 2006)