Increase blending capacity
Mr. Trinh Quang Khanh - General Secretary of the Vietnam Petroleum Association - said that, according to the Association's summary, the blending capacity of members currently reaches about 950,000m3/month. With this capacity, it is entirely possible to meet the demand for biofuel nationwide.
Representatives of Vietnam Oil Corporation (PV OIL) said that PV OIL has been licensed 13 blending locations nationwide, of which 7 locations can be blended continuously with high capacity. The current total blending capacity reaches about 300,000m3/month and is expected to increase to 350,000-380,000m3/month by the end of 2026. The enterprise is increasing its ethanol storage capacity to about 40,000m3/month. The supply of base gasoline is guaranteed through contracts with domestic refineries and import sources, enough for March, April and May.
For ethanol, PV OIL has developed a supply plan corresponding to the demand of about 20,000m3/month when deploying E10 synchronously, while maintaining inventory to ensure supply for the following months. With the existing conditions, PV OIL expects to be able to deploy E10 gasoline business on a large scale from mid-April to the end of April, earlier than the initial plan.
According to a representative of Saigon Petro, the entire system of stores directly under the enterprise will deploy E10 gasoline sales from the beginning of April, ready to expand supply in May if partners have demand. Anh Phat Company has also completed the basic conditions to deploy E10 gasoline blending. The enterprise is expected to start trading E10 gasoline throughout the system from mid-April.
To deploy E10 gasoline on a large scale, preparing ethanol supply is considered a key problem for businesses. Ethanol demand is expected to increase sharply when the entire market transforms, requiring supply to be stable in both output and quality.
Need a clear consumption plan
According to Mr. Do Van Tuan - Chairman of the Vietnam Biofuel Association, the demand for ethanol for blending E10 biofuel is estimated at about 92,000-100,000m3/month. Meanwhile, the whole country currently has 6 ethanol production plants, but only 3 plants are actually operating.
According to many ethanol plants, these units are fully capable of increasing production or restoring operations in the near future, if financial and market conditions are removed.
Representatives of Dong Nai Ethanol Plant said that the plant is currently operating stably with a capacity of about 250 m3/day, equivalent to 7,000 m3/month and has reached the maximum level. The plant has also planned to increase capacity with a maximum capacity that can reach about 130% compared to the present.
Meanwhile, Dung Quat Ethanol Plant has just officially put into commercial operation after a trial run and adjustment process. Currently, the output is maintained at about 6,000m3, tons/month and can be increased to about 9,000m3, tons/month under favorable conditions.
However, according to the factory representative, increasing capacity not only depends on technical factors but is also closely linked to product output. Currently, products are mainly supplied to Binh Son Oil Refinery, but there is no mechanism to consume the entire output. Therefore, businesses propose that there should be a clear consumption plan from major key traders to proactively organize production, from human resources, equipment to raw materials.
In the opposite direction, factories that are "hibernating" also have important room to increase domestic supply. Typically, the Binh Phuoc Ethanol Factory, with a designed capacity of about 6,000m3/month. According to business representatives, the factory has undergone major maintenance since 2018 but has not resumed operation. With the advantage of being close to cassava raw material sources from the Central Highlands, Tay Ninh and import sources from Cambodia, the factory has favorable conditions to ensure input when restarting.
If restored, the plant can be put back into operation in about 3-5 months after completing the necessary technical items. In addition, its location on National Highway 14 allows it to develop into a transshipment point and ethanol blending point for the Southeast and Central Highlands regions, which is an advantage that not many other facilities have.
