The PetroVietnam Bio-ethanol Company (PVB) inked on Wednesday in Hanoi an engineering, procurement and construction contract with a consortium to build the first biofuel factory, worth US$80 million, in northern Phu Tho Province.
The consortium consisted of PetroVietnam Constructions Joint Stock Corporation, Swedish Alfa Laval and American Delta T. The factory, expected to be completed in 18 months’ time, will process biofuel from sugarcane and cassava. It will be able to produce up to 100,000cu.m of ethanol per annum. The project forms part of the national biofuel development programme, which runs until 2015 and which was ratified by the Prime Minister in November 2007.
The low-cost biofuel it produces will reduce the need for petrol in a bid cut CO2 gas emissions as well as create income for farmers, the PVB says. To meet the rising demand for bio-ethanol, companies such as Bien Hoa sugar, Dong Xanh and Viet Nam bio-alcohol have been expanding their operations.
