PetroSetco Plans to Build Six Ethanol Plants in Vietnam

State-run PetroVietnam Tourism & Service JSC (PetroSetco), a shareholding company which has PetroVietnam as its biggest shareholder, said it plans to build six plants to produce ethanol in Vietnam, with its first plant to be built in 2008.

 

It will join hands with Bronzeoak Group Limited to build a bio-ethanol plant in central Binh Dinh province in 2008 to meet the high fuel demand in the country.

 

The two companies expect to spend US$100 million to build the bio-ethanol plant with an annual capacity of 100 million liters of ethanol, 190 tons of CO2 and 120 tons of raw materials for animal feed per day.

 

PetroSetco has recently conducted a survey to find a suitable location for the plant, in both Tay Son district and Nhon Hoa industrial zone in An Nhon district, said Nguyen Thanh Hai, director of Binh Dinh Investment Promotion Center.

 

PetroSetco said on its website that ethanol, which is cheaper and won’t cause much environmental pollution, can be mixed with gasoline at a ratio of 10 per cent and Vietnam now needs around 700 million liters of ethanol a year to blend with gasoline to produce more environment-friendly fuel.

 

PetroSetco, an affiliate of state-run oil monopoly PetroVietnam, expects to build six other ethanol facilities in material-rich materials.

 

Cassava is the main feedstock for the plant. Sugar cane is also input for ethanol production.

 

Previously, in March, Petrosetco and Japan's Itochu Corp signed a memorandum to cooperate in producing ethanol from tapioca chips. The two agreed to build a factory with an annual output of 100 million liters of ethanol in Ho Chi Minh City’s Hiep Phuoc Industrial Park. The two companies are expected to complete their feasibility study in September to start their joint venture before the end of this year.

 

PetroSetco said its joint venture with Itochu will need up to US$100 million investment capital, depending on the technology. The facility is expected to be built in the first quarter of 2008 for operations in 2009.

 

Currently, some companies which are seeing great ethanol demand in Vietnam, are also speeding up their investment plans.

 

Opus Securitas Vietnam expects to invest US$162 million to build an ethanol factory with annual output of 160,000 cubic meters in central Quang Ngai province.

 

Dong Xanh JSC also plans to invest US$37.5 million in an ethanol plant project in Quang Nam province, capable of producing 120 million liters of ethanol.

 

Sugar Bourbon Tay Ninh Company plans to invest US$10 million to build a plant to produce 3.65 million liters of ethanol annually.

 

Indian-invested Nagarjuna Vietnam is running a US$38-million ethanol plant with total capacity of 22 million liters a year in southern Long An province.

 

Unlisted PetroSetco is expected to raise its registered capital to VND500 billion this month, and will list its shares on Hochiminh Stock Exchange before the end of this year.(VNN, Vietnam Economic Times, PetroSetco website)