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Vietnam biofuel market remains modest

Vietnam has great potential in the development of biofuels but the use of this kind of energy remains limited, according to the Vietnam Economic News on April 16.
Vietnam has great potential in the development of biofuels but the useof this kind of energy remains limited, according to the VietnamEconomic News on April 16.

Every year, Vietnam still exportsmillions of tonnes of raw cassava to other countries for producingethanol. In order to promote the development of the biofuel industry,the prime minister signed Decision 177/2007/QD-TTg on “the project ofdeveloping biofuels by 2015 with a vision to 2025.”

Head ofthe Ministry of Industry and Trade's Science and Technology DepartmentNguyen Dinh Hiep said Vietnam has successfully carried out research andmixed some kinds of biofuels like E5 (petrol containing five percent ofethanol), E10, E15 and E20 and launched pilot sales at 160 storesnationwide. The biggest advantages of using bio-fuel are to reduce from27-44 percent of the gases causing the greenhouse effect and also tosave fuels compared with using other ordinary petrols.

Accordingto the experts from Hanoi University of Science and Technology and theCentre for Technology Application and Transfer under the VietnamPetroleum Institute, the E5, even E10 and E20 in conventional engineswhich are popular in Vietnam will not fundamentally affect the vehicle's features. Using the biofuels even helps motorcycles and automobilesstart and speed up better.

In particular, with materials mainlyfrom industrial production, the development of biofuels can stimulateagricultural production and expand markets for agricultural products inthe country. Pham Anh Tuan, CEO of Phuong Dong Biofuel Company said ifcassava production remains stable, about 300 thousand households or 1.2million people, most of them living in remote areas and so poor willstabilise their lives.

Recognising the importance of biofuel tothe energy security issue, the Vietnam Oil and Gas Group (PVN) hasworked out a roadmap to develop biofuel with a target by 2015 with avision until 2025 to develop biofuels which can ensure energy security,improve the environment and increase incomes for farmers.

Toaccomplish this goal, PVN and Petro Vietnam Oil Corporation have putinto operation three projects on producing ethanol biofuels withcapacity of 300,000 cu.m per year, including Phu Tho Ethanol Plant (TamNong district, Phu Tho province), Quang Ngai Ethanol Plant (Dung QuatEconomic Zone, Quang Ngai province) and Binh Phuoc Ethanol Plant (BuDang district, Binh Phuoc province).

According to PVN, thegovernment has granted permission to build six ethanol plants usingcassava chips as raw materials which helped cassava farmers inneighboring provinces stabilize production and lives.

However,finding markets and consumers at present remain limited, resulting indifficulties for the government to draw a roadmap for using biofuelsacross the country. According to experts, Vietnam needs to develop thedistribution systems across the country, and raise people’s awareness ofthe benefits when using the biofuels.

The nation now has sixethanol plants with a total capacity of 535 million liters a year. Ofthese, domestic consumption accounts for 20 percent and the remainder isexported to Japan, the Republic of Korea and the Philippines. Accordingto the government’s roadmap, the E5 bio-petrol will be used in sevencities and provinces and across Vietnam in 2015. From the end of 2017,bio-petrol E10 will also be used across the country.-VNA

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