Vietnam’s ethanol plants operating below capacity

Vietnam Oil and Gas Group (PVN) has two operating ethanol plants, one in Dung Quat, Quang Nai, and another in Binh Phuoc. A new plant in Phu Tho is due to start soon, PVN Chairman Phung Dinh Thuc said at a press briefing on the 2012 business performance of PVN.
However, only 10% of the ethanol produced in the two facilities is consumed locally, he said. The large part of its ethanol production is exported at VND13,000 (US$ 0.62) per liter, while production cost is at VND15,000 (US$ 0.72) per liter, resulting in losses.
“We are studying how to operate these ethanol plants efficiently. We have developed ethanol plants but ethanol use has been limited,” he said.
 
According to the government’s approved schedule, petrol with 5% bio-ethanol content, or E5, will be officially sold in Ha Noi, Hai Phong, HCMC, Can Tho, Danang, Ba Ria-Vung Tau and Quang Ngai in late 2014. From December 1, 2015, E5 petrol will be widely available nationwide. In the meantime, ethanol plants will continue to struggle, as evidenced by the recent closure of the Dai Tan ethanol plant in Quang Nam province, leaving mountains of debts. (January 2, 2013)