Itochu to invest in ethanol project in Vietnam

Japan’s Itochu Corp. will invest ¥4 billion (US$48.23 million) in an ethanol plant in Vietnam’s southern province of Binh Phuoc. The state-run Vietnam Oil and Gas Group (PetroVietnam) is the main investor in the project which is valued at ¥10 billion (US$120.58 million), the Vietnam News Agency reported. The plant, which is among PetroVietnam’s three ethanol projects nationwide, is already under construction in the Minh Hung commune, Bu Dang district, west of Ho Chi Minh City. The plant is expected to start operations in 2012, and will produce 100 million liters of ethanol per year, using cassava as feedstock. In addition to capital contributions to the project, Itochu will send experts to Vietnam to design and operate the plant. PetroVietnam expects to use 4.8 million cubic meters of fuel ethanol to produce E5, gasoline with 5% ethanol, by the end of 2011 and an additional 2.37 million cubic meters by 2012. (December 9, 2010)