The company will produce ethanol from cassava. Domiciled in Binh Son District, in the central province of Quang Ngai, the PetroVietnam Biofuel Joint Stock Company will have a charter capital of VND45 billion (an estimated US$2.7 million). PetroVietnam General Services Joint Stock Corporation (Petrosetco) will hold 51% of the shares; the newly established PetroVietnam Oil Corporation, 29%; Binh Son Refining and Petrochemical Co Ltd. 15%; and PetroVietnam Finance Joint Stock Corporation (PVFC) 5%.

The project is a part of a biofuel development program that was ratified by the Vietnamese government last year. One aim of that program is to produce 250,000 tonnes of ethanol and vegetable oil by 2015 to meet and replace 1% of the country’s petroleum demand. A modest target, but it is one step Vietnam is taking to reduce dependence on fossil fuels.

A Director of the Institute of Policy and Strategy for Agriculture and Rural Development was quoted as saying that in the future, crude oil and coal would diminish and other traditional energy sources, including nuclear sources, would fail to meet local demand. Planning for the future, Vietnam has now started developing wind, solar and biogas industries at a small scale. It is envisioned that the country could produce biofuels from various sources including sugar cane, cassava and seaweed.