HCMC – Petrol with 5% bio-ethanol content, or E5 petrol, will be officially
sold in major cities and provinces by December 2014, giving ethanol producers
and cassava growers hope for strong future sales.
The Prime Minister last week
passed the schedule for sales of mixtures of biological and fossil fuels. As
per this schedule, E5 petrol will be sold in Hanoi, Haiphong, HCMC, Can Tho,
Danang, Ba Ria-Vung Tau and Quang Ngai from December 1, 2014 and available
nationwide from December 1, 2015.
Meanwhile, gasoline blended with
10% bio-ethanol (E10 petrol) will go on sale in the aforesaid localities from
December 1, 2016 and be sold across the country from December 1, 2017.
Nguyen Anh Toan, deputy general
director of PetroVietnam Oil Corporation (PV Oil), said two of the three
ethanol plants developed by PV Oil in Quang Ngai and Binh Phuoc had begun
production in the second quarter. However, only 10% of the products are
consumed locally.
In August 2010, PV Oil launched
E5 petrol into the market for trial sale. So far, the sales volume has been
modest.
PV Oil forecasts around 200,000
liters of E5 petrol will be sold this year, while the annual capacity of each
plant that PV Oil invests in is 100 million liters.
According to a previous plan,
five ethanol plants would have begun operations by 2012. However, given the
trivial market share of E5 petrol, some plants are still on a trial run,
leading to a huge volume of cassava being unsold or sold on the cheap.
Dang Quoc Dung, deputy general
director of PetroVietnam Central Bio-fuels Joint Stock Company (PCB), said that
when E5 petrol is brought into mandatory use in 2014, bio-petrol producers will
have a better chance of good sales in the local market. At present, they mainly
export products given poor consumption at home.
Similarly, cassava, material for
bio-fuel, is being exported en masse, but the situation will change in late
2014. Local ethanol producers will compete with traders in the purchase of
dried sliced cassava, Dung forecast.
Cassava growers in the provinces
where ethanol plants are located like Phu Tho, Binh Phuoc and Quang Ngai hoped
for stronger sales as these plants annually need nearly 800,000 tons of dried
sliced cassava for production.
However, several plants are
suffering low consumption of bio-petrol because of many reasons, including
investment incentives still being studied.
Typical ethanol plants in Vietnam
are Ethanol Phu Tho, Bio-ethanol Dung Quat and Bio-ethanol Binh Phuoc, each of
which has a capacity of 100 million liters and a demand for 240,000 tons of
sliced cassava per year. Each of these plants has an investment capital of
VND1.6 trillion.
In addition, Ethanol Dai Tan
plant has an annual capacity of 125 million liters, produced from 300,000 tons
of cassava, and Ethanol Tung Lam can produce 60 million liters every year.
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.
No comments:
Post a Comment