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|The two bio-ethanol factories will help the market switch to E5 biofuel|
According to information from PetroVietnam, the group is co-operating with relevant parties to resume the operation of Binh Phuoc Ethanol. Notably, Bui Ngoc Duong, who is in charge of PetroVietnam’s Gas & Oil and Gas Processing Department, shared that Binh Phuoc Ethanol’s shareholders—namely Toyo Thai New Energy, PetroVietnam Oil Corporation (PVOil), and Licogi 16 Joint Stock Company (Licogi 16)—have contributed the necessary capital to re-open the factory.
In addition, the joint venture contractor VSP-Licogi 16 has completed the first stage of maintenance and repair, readying the facility for resumption.
Furthermore, Orient Bio-Fuels Company Limited (OBF) is negotiating with PVOil to buy the facility’s products. Accordingly, PVOil will advance money so that OBF can have capital to maintain its operations.
Binh Phuoc Ethanol factory opened in December 2012 with a capacity of 300,000 litres of E5 gasoline per day. It was closed at the beginning of 2015, however, due to inefficiency.
Regarding Dung Quat Bio-Ethanol Fuel Factory, according to information published by PetroVietnam Central Biofuels JSC (BSR-BF), BSR-BF and Tocontap Saigon signed an agreement to resume the operations of Dung Quat Bio-Ethanol.
According to the agreement, Tocontap will supply materials for BSR-BF to process ethanol. The contract will last for 10 years, and in the first year, Tocontap will be in charge of selling BSR-BF’s ethanol products.
This year, BSR-BF plans to process 7,000 cubic metres of ethanol for Tocontap, and the figure will in crease to 35,000 cubic metres next year.
At present, engineers and technical staff are checking and preparing machinery and manufacturing lines.
Dung Quat Bio-Ethanol Fuel Factory was built in 2009 with the total investment capital of VND2.02 trillion and a designed capacity of 100 million litres of ethanol per year to mix with petrol to form bio fuel products.
The factory started commercial operations in 2012, and so far, it has not gained a significant hold on the market, leading to heavy losses.
The resumption of Binh Phuoc Ethanol and Dung Quat Bio-Ethanol Fuel will create more E5 fuel for the market, decreasing its selling price.
In reality, since January 1, petrol distributor switched nationwide from RON A92 petrol to bio-fuel E5.
However, most distributors agreed that the small price difference between E5 and RON 95 (about VND857 per litre) leave consumers uninterested in switching. In addition, container fees and transportation for E5 petrol are higher than RON 95, making business more difficult for petrol dealers.