March 12, 2007

Japan helps build Vietnam's first bio-ethanol plant

The Petroleum Services and Tourism Company in Vietnam (Petrosetco) and Japan's Itochu Cooperation will set up a joint venture to build the first bio-ethanol plant in the country.

According to Vietnam Net Bridge, the two partners have signed a Memorandum of Understanding in Ho Chi Minh City on March 9.

The US$100 million project will produce 100 million litres of ethanol each year from sliced cassavas which will be sold in Vietnam to mix in petrol used in industrial production and transport activities.

The mixing of ethanol in petrol will help the country reduce its petrol imports as well as cut environmental pollution, said Tran Cong Tao, Petrosetco's chief of executive.

Itochu group, with a 30-year experience of handling ethanol projects, will give its first hand knowledge to its Vietnamese partner for a successful bio-ethanol project in Vietnam, according to Itochu's deputy executive director Toshio Shigemi.

Deputy Minister of Industry Do Huu Hao and Vice Chairman of the municipal People's Committee Nguyen Trung Tin spoke highly of the cooperation between Petrosetco and Itochu in creating a new kind of energy source for Vietnam.

The plant, which will be located in Hiep Phuoc industrial zone, is expected to be completed in the first quarter of 2009.