Cost of northern Vietnam ethanol plant jumps 60%

The cost of the Phu Tho ethanol project in northern Vietnam has risen to US$128 million, up 60% from the original forecast of US$80 million, a source close to state-owned proponent PetroVietnam said. A contractor consortium led by PetroVietnam Construction Corporation and includes Sweden’s Alfa Laval and U.S.-based Delta T Corporation began work on the Phu Tho ethanol plant in the Tam Nong district in June 2009. The plant, which is wholly owned by PetroVietnam Oil subsidiary PVB, is expected to produce 100,000 cubic meters (629,000 barrels) per year of ethanol from 35,000 hectares of cassava and sugarcane, according to PetroVietnam Oil. PetroVietnam is currently pursuing the construction of two more 100,000 cu m per year ethanol plants in the country’s central and southern regions. Vietnam began trial sales of gasoline containing 5% ethanol, or E5, and biodiesel B5 last August in five cities. (February 10, 2011)