Petrovietnam plans $80m ethanol JV with Itochu

13 March 2008 10:38  [Source: ICIS news]

SINGAPORE (ICIS news)--Vietnam’s state-run Petrovietnam is planning to set up a 75m litres/year ethanol plant at an investment of $80m in the southern city of Vung Tao with Japan's Itochu Corp, a source at Petrosetco, the service arm of the company said on Thursday.

 

The ethanol plant, which will use tapioca as feedstock, was originally scheduled to be located in Ho Chih Min City but was relocated to Vung Tao earlier this year as “land was not provided on time”, a source from Petrosetco said.

 

Petrosetco signed a memorandum of understanding (MoU) with Itochu in September last year but the source declined to reveal details of the joint venture or when the agreement was expected to be finalised.

 

Meanwhile, Petrosetco is also planning a $138m joint venture with British biodiesel company Bronzeoak for an ethanol plant to be located in central Vietnam. The plant has a planned production capacity of 1.2m tonnes/year. The two companies signed a MoU last June but no further details were available.

 

About 40-50% of the company’s annual tapioca production for export will be channelled to the ethanol plants. The plants will be built to use only tapioca as feedstock, the source said.

By: Arujnee J Ram
+65 6780 4359

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