Itochu to participate in bio-ethanol production business with PetroVietnam
Itochu Corporation has announced that it will participate in a fuel bio-ethanol production business in Binh Phuoc Province of southern Vietnam with PetroVietnam Oil Corporation, a subsidiary of Vietnam National Oil and Gas Group.
Itochu has decided to invest in the joint venture company, Orient Bio-Fuels Company Limited. The project plans to start commercial operation from spring 2012 using cassava, a well-grown crop in the region as feedstock, aiming production of around 100,000 kiloliters per year. The bio-ethanol produced by Orient Bio-Fuels is expected to be sold to the market through gas stations under PetroVietnam Oil, the company said.
The Ministry of Industry and Trade (MOIT) is currently formulating a legal system to introduce fuel ethanol to Vietnam. PetroVietnam, an affiliate of MOIT takes role in the actual implementation, starting trial sales of gasoline mixed with 5% ethanol (E5) from August 2010 in five cities in Vietnam, the company added.
Tags: Bio-ethanol