Hanoi (VNA) – Major fuel distributors and domestic refineries are accelerating preparations to ensure sufficient supply, infrastructure and technical capacity for the nationwide sale of E10 biofuel starting June 1.
According to the Vietnam Biofuels Association, the country currently operates six fuel ethanol plants with a combined designed capacity of about 600,000 cubic metres per year, which would meet only around 40% of the estimated 1.5 million cubic metres needed annually for nationwide E10 production. The rollout is therefore predicted to significantly increase ethanol demand while domestic feedstock supply remains unstable.
Vietnam has nearly 600,000 hectares of cassava, producing more than 10.5 million tonnes of fresh roots each year. However, fragmented cultivation and low productivity have led to shortages of raw materials, according to the Ministry of Agriculture and Rural Development.
Dr Chu Tien Quang, former head of the department for rural development policies at the Central Institute for Economic Management, suggested diversifying ethanol feedstock to include maize, rice bran, agricultural by-products and low-grade rice, helping ease pressure on land resources and create added value for farmers.
Nguyen Tri Ngoc, Vice Chairman and General Secretary of the General Council of Agriculture and Rural Development of Vietnam, perceived that developing high-yield cassava varieties and strengthening contract farming between businesses and growers are also seen as key to stabilising supply.
The Dung Quat Oil Refinery, operated by the Binh Son Refining and Petrochemical Joint Stock Company (BSR) under Vietnam National Industry – Energy Group (Petrovietnam), estimates ethanol demand at about 300,000 cubic metres per month. The refinery has upgraded its blending systems and plans to prioritise domestic ethanol purchases while importing additional volumes if needed to ensure sufficient supply for E10 RON95 production, noted its Director Cao Tuan Si.
The Vietnam National Petroleum Group (Petrolimex) said it has reviewed and upgraded storage tanks, blending systems and equipment while ensuring product quality in line with technical standards and training operational staff. The group currently operates seven biofuel blending depots nationwide with a total capacity of 6–6.1 million cubic metres per year and is working with suppliers at home and abroad to secure ethanol supply, including imports from the US, the Republic of Korea, Singapore and the Philippines, for E10 manufacturing.
However, challenges remain. Under national technical standards, oxygen content in E10 must not exceed 3.7% by mass, requiring base petrol with zero oxygen content. Domestic supply of such base fuel currently meets only about 60% of demand, and the remaining 40% needs to be imported at higher cost, which could increase production expenses.
Meanwhile, the Vietnam Oil Corporation (PVOIL), a subsidiary of Petrovietnam, runs 12 biofuel blending facilities nationwide and maintains stable links with domestic ethanol producers to meet about half of its demand, with the remainder imported from markets such as the US, Brazil and Thailand.
Industry representatives noted that alongside infrastructure readiness, continued investment, stable raw material supply and an appropriate pricing policy in the initial phase will be essential to ensure a smooth nationwide transition to E10 from June 1./.
VNA
