BEIJING -- China will expand production and consumption of bioethanol fuel this year as the country seeks more channels to use corn and grain stockpiles, the State Administration of Grain (SAG) said.

Bioethanol is a form of renewable energy that can be produced from crops such as corn and potatoes.

Years of support for corn farmers have left China with a substantial stockpile. To help make use of the excess stock, China last year announced a plan for nationwide use of bioethanol gasoline by 2020.

Outlining the work priorities for 2018, the SAG said it will accelerate the use of grain stockpiles and reform grain storage mechanisms to make them more market-oriented.

Data from the National Bureau of Statistics showed about 618 million tonnes of grain were produced in 2017, the second highest output in history.