>> Petrol alternative to hit the Vietnam market

The Vietnam Bio-fuel Association was recently established with initial capital of USD500 million in a bid to foster the industry’s development.

Bio-fuel is expected to improve domestic fuel supplies

The association’s Chairman Quang Thai Luu said, “Vietnam has been exporting a great deal of cassava at low prices to foreign countries such as China for their bio-fuel production, leaving farmers heavily dependant on export volumes for years. We have advantage of material supply for domestic bio-fuel production that is expected to create more jobs for poor residents in remote and mountainous areas.”

According to Luu, Vietnam’s oil and gas reserves are only sufficient to continue supplies for the next 30 or 40 years.

In the meantime, bio-fuel is expected to meet from 5%-10% of national annual fuel demand, in addition to mitigating CO2 emissions and protecting the environment, he noted.

“The development of bio-fuel will help ensure farmers’ livelihoods, protect the environment, foster national energy security and mitigate the trade deficit,” said Nguyen Phu Cuong, Deputy Director of the Ministry of Industry and Trade’s Department of Science and Technology.

By 2012, the newly-established association is expected to supply sufficient fuel for the production of bio-ethanol or E5, a petrol variety blended with 5% ethanol.

E5 was officially marketed in Vietnam from August 2010 at VND500 cheaper than standard A92 unleaded petrol.