VINACHEM

Vietnamese enterprises and authorities are ready to produce and trade E5 biofuel gasoline.

From January 1, 2018, gasoline enterprises are only allowed to produce and trade E5, under a decision from Prime Minister Nguyen Xuan Phuc.

Enterprises have made careful preparations regarding suppliers and technology for production, with suppliers being a key concern of the Ministry of Industry and Trade (MoIT).

“We can fully meet demand for E5 gasoline given the capacity at existing plants,” Deputy Minister of Industry and Trade Hoang Quoc Vuong said. “We also allow enterprises to import ethanol to ensure competition in the market.”

Because E5 biofuel is quite new for customers, Mr. Vuong said that enterprises and ministries must promote its advantages. In addition, MoIT and the Ministry of Finance (MoF) will cooperate in introducing tax policies for biofuel, to attract customers.

Authorities have tested the quality as well as the effect of E5 biofuel, finding it protects the environment and lowers harmful gases such as CO2, HC, and SO2, according to Mr. Nguyen Nam Hai, Deputy Director General of the Directorate for Standards Metrology and Quality. E5 gasoline has no negative effect on modern engines.

Mr. Nguyen Duc Nam, Deputy Director of the PetroVietnam Oil Corporation (PV Oil), said it has prepared resources to improve and expand E5 gasoline blending facilities to ensure supply after January 1.

PV Oil has a blending station at Dinh Vu in Hai Phong with a capacity of about 80 cu m per hour, which will increase in line with demand, he said.

Petrolimex also said that they will ensure ethanol supplies and expand E5 gasoline blending stations in provinces around the country. Deputy Director Tran Ngoc Nam emphasized that the group targets introducing distribution chains from December 1.

The requirements on producing E5 are high, including in technology and facilities, so the government should adopt reasonable policies to support small and medium-sized enterprises to take part in the E5 gasoline business, according to Mr. Phan The Rue, Chairman of the Vietnamese Gasoline Association.

E5 is formulated from 95 per cent A92 gasoline and 5 per cent anhydrous ethanol. - VNN -