Japan Itochu takes part in Vietnam ethanol project with PetroVietnam

Japan's Itochu said Monday it will participate in a bio-ethanol fuel production business with PetroVietnam Oil, a subsidiary of state-run oil and gas company PetroVietnam, in Binh Phuoc Province of Southern Vietnam.

This follows its participation in similar projects in Brazil and Philippine, the company said.

The project plans to start commercial operation of a cassava-based ethanol plant with a production capacity of around 100,000 kiloliters (629,000 barrels)/year in spring 2012.

PetroVietnam Oil will be in charge of sales and marketing of the ethanol from the project at its service stations once it comes on stream, the company said.

Currently, Vietnam's Ministry of Industry and Trade is formulating a system to introduce ethanol into the fuel to Vietnam. PetroVietnam will implement the project, starting trial sales of gasoline mixed with 5% ethanol (E5) from August 2010 in five cities in Vietnam.

source: platts