Laos to produce biofuel to reduce imports hinh anh 1At the signing ceremony (Photo: KPL)

Vientiane (VNA) – The Lao Government is planning to produce biofuel in an effort to reduce reliance on imported fuels.

Recently, the Lao State Fuel Company signed an agreement with GAIA Petro Co., Ltd. of the Republic of Korea to launch a biofuel production project worth 20 million USD in Laos.

The project will be located in Dongphosy village in Hadxayfong district of Vientiane capital.

The GAIA Petro Co., Ltd. holds a 55% of shares of the project, 22.5% is owned by the Lao State Fuel Company, and 22.5% by local investors.

The joint-venture aims to produce 500,000 litres of biogasoline a day.

It is expected that the first year will be able to supply about 10 million litres per month. The volume of biofuel will increase by 20% per year from the second year./.