Awakening ethanol plants, proactively supplying E10 gasoline

Ethanol plant increases operating capacity

The roadmap for deploying E10 gasoline is being accelerated, leading to a large demand for ethanol. Proactive domestic supply helps ensure progress, reduce import dependence, expand output of agricultural products and promote the green economy.

According to Mr. Do Van Tuan - Chairman of the Vietnam Biofuel Association, the demand for ethanol for blending E10 biofuel is estimated at about 92,000 - 100,000m3 per month. Meanwhile, the whole country currently has 6 ethanol production plants, but only 3 plants are actually operating.

The total theoretical capacity of the entire plant system reaches about 41,000m3/month. However, with the current operating situation, the actual capacity only reaches about 25,000m3/month, equivalent to 25-27% of the demand. When mobilizing maximum plants, the national ethanol demand response level is about 41%.

This large shortage poses a double problem: Both having to maximize domestic capacity and being proactive in import sources to ensure the progress of E10 implementation" - Mr. Tuan said.

In that context, in January 2026, Dung Quat Biofuel Plant in Quang Ngai resumed operation after completing maintenance and repair work. Right in early February, the plant launched the first batch of products with a volume of more than 462.7m3 of ethanol (E100) finished products.

Mr. Pham Van Vuong - Director of BSR-BF - said that after maintenance, Dung Quat Biofuel Plant will operate at 60% capacity from March 2026, increasing to 75% and expected to reach 100% in April.

Currently, the factory uses domestic cassava slices to produce E100, and is also considering importing more raw materials from Laos. In the near future, the enterprise will also study switching to imported high-yield corn to stabilize supply.

At the same time, BSR-BF will study replacing raw material sources with high-yield corn imported from countries such as the US, Brazil... to ensure the stability of raw materials in the factory's operation.

Restarting the plant will help increase the E100 source for the market. With a 100% capacity, the plant will produce about 330m3 of E100/day" - Mr. Pham Van Vuong said.

Dong Nai Ethanol Plant is currently operating stably at 250m3/day (about 7,000m3/month), reaching maximum capacity. Flexible production line, can use many raw materials such as corn, cassava slices, rice chips... and is being planned to increase capacity to about 130%.

Rebirth" of ethanol plants

In addition to operating factories, factories that are "hibernating" also have important room to increase domestic supply and are fully capable of increasing output or restoring operations in the near future, if financial and market conditions are removed. Typically, Binh Phuoc Ethanol Factory with a designed production capacity of more than 100 million liters of bio-alcohol/year, consuming about 240,000 tons of dry cassava/year.

According to Lao Dong Newspaper's records, due to non-operation, dozens of hectares of the factory's premises are closed. Inside, machinery is covered in dust and lying still. Factory workers have been dismissed.

Representatives of the investor (Phuong Dong Biofuel Co., Ltd.) informed that the factory is currently a judgment enforcement asset, being inventoried. The opportunity to reopen is very difficult.

If banks lend and coordinate with the investor to agree on a plan to restart the factory, there will be an opportunity to resume production under the supervision of banks. We have proposed this direction to the banks, but have not yet received a response" - representative of Phuong Dong Biofuel Co., Ltd. assessed.

Regarding machinery, a representative of the investor said that it was maintained in 2018. Up to now, the machinery system can still ensure operation. If banks and investors reach a consensus and are determined to operate again, the factory can restart, avoiding asset waste.

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