Hanoi Times – Vietnam will strongly develop bio-fuels and it aims to be able to produce and put into use E5 gasoline (gasoline mixed with 5% bio-ethanol by volume) and B5 oil (diesel mixed with 5% bio-diesel by volume) by 2025 in the whole country.

Those are the targets of the scheme to develop bio-fuels in Vietnam to 2015 and the vision to 2025 compiled by the Ministry of Industry and Trade.

According to this scheme, bio-fuels will meet 10% of the total need for liquid fuel in the country by 2025.

In Vietnam, as the need for energy is increasing very quickly (around 37 million tonnes of oil in 2010 and 51 million tonnes by 2020), bio-fuels are considered replacements. The Vietnam Oil and Gas Corporation (PetroVietnam), the Vietnam Petroleum Import Export Corporation (Petrolimex) and some universities have conducted research projects o­n clean fuels.

The HCM City University of Technology has carried out tests to prove that ethanol can replace gasoline as fuel for engines. The Beer and Beverage Institute has experimentally used ethanol as fuels for some kinds of engines. The Food Technology Institute has researched producing ethanol from agricultural waste. Many other companies are about to begin producing ethanol.

Dr. Dang Tung, Head of the Science and Technology Agency under the Ministry of Industry and Trade, said that many ethanol factories have been built in Vietnam in 2007, including o­ne owned by the Vietnam Ethanol Joint Stock Company in Dak Lak Province with a yearly capacity of 66,000cu.m. This company plans to grow 4,000ha of Tiboca as raw material for ethanol production.

The Bien Hoa Sugar Company in August 2007 signed a contract with a Singaporean company to build an ethanol factory with an annual capacity of 50,000 tonnes. Petrosetco Vietnam and Itochu Japan have invested around US$ 100 million to build an ethanol factory with a capacity of 100 million litres per year from cassava in Phuoc Hiep Industrial Zone in HCM City. Around 99.8% of ethanol produced locally will be supplied to bio-fuel producers.

Dr. Tung said that to successfully realize the above scheme, Vietnam needs to have a roadmap and solutions for each period and bring into full play cooperation and assistance of other countries and international organisations.

It is estimated that around VND 284 billion (US$ 17.75 million) of capital is needed for this scheme. Accordingly, from 2007-2010, efforts will be devoted to build the legal system to encourage the production and use of bio-fuels in transport and industries.

In the following period, 2011-2015, Vietnam will try to produce materials and additives for bio-fuel production, partly replace normal energy by bio-fuels, develop bio-fuel producing factories nationwide, and put E5 and B5 into use (accounting for 20% of the need for gasoline).

By 2025, Vietnam’s bio-fuel industry will reach the world-advanced standard and E5 and B5 gasoline will be used widely in the country.

Tung said that in 2007-2015, bio-fuel projects must be especially encouraged. Bio-fuel producers must be exempted or enjoy reductions of corporate income tax and other investment incentives at the highest levels.