Companies have the necessary technology to market E10 gasoline.

Increasing domestic supply, reducing pressure on gasoline and diesel imports.

Facing the accelerated deployment of E10 bioethanol, the ability of Chinese petrochemical companies to adapt to it is receiving special attention. In this regard, Mr. Cao Tuan Si, director of the Dung Quat refinery (Binh Son Petrochemical Joint Stock Company), provided precise information on the technological capabilities, infrastructure, and company’s strategy on participation.

– Implementing a roadmap for blending biofuels with traditional fuels will help increase petroleum product supply when biofuels reach 10%. For refineries, how significant is promoting the use of biofuels to reduce pressure on oil supply in the current context?

Mr. Cao Tuan Si: Currently, Vietnam has two oil refineries: Dung Quat and Nghi Son. These refineries cover approximately 70% of the domestic demand for petroleum products. However, with the country’s development, demand will increase. In this context, both refineries are operating at full capacity, i.e., 120%. Therefore, the government’s policy of using E10 gasoline will help increase supply, while mineral gasoline refineries are already operating at full capacity.

As a result, the E10 incorporation policy, in addition to its environmental benefit, will increase domestic production by 10%, reducing dependence on imports, especially in an unstable global context with limited external supplies. Simultaneously, the development of biofuels offers refineries the opportunity to increase production by using them directly and blending them with conventional gasoline.

It is established that the Binh Son refinery and petrochemical plant are ready to blend and supply biofuel to key distributors. From a business perspective, can you tell us if local companies currently have the capacity to blend and supply biofuel on a national scale?

Mr. Cao Tuan Si: Biofuels require a mix similar to that of conventional gasoline, but this process requires thermal and environmental insulation. Therefore, companies adopting biofuels need to make modifications to their supply systems. These modifications, both in storage and distribution, require time and significant investment to ensure product quality in the market.

Currently, the Dung Quat refinery has implemented solutions to allow blending and distribution of biofuels in the near future. We have also provided fuel to several units in the Central region to facilitate their transition from gasoline distribution systems to biofuels. Thanks to our current systems, we are confident in meeting our customers’ needs once the biofuel transition plan is implemented.

Companies are proactively adopting new technologies and ready to offer E10 gasoline to consumers.

– Specifically, what technological investments has the Binh Son refinery recently made to ensure the quality and efficiency of E10 gasoline production, sir?

Mr. Cao Tuan Si: In the past period, according to the government roadmap, we have implemented many investment projects. In terms of production, we have invested in refurbishing the Dung Quat biofuel plant, specializing in ethanol production for blending with gasoline.

Furthermore, regarding blending, we have modernized the storage system to ensure biofuel quality before distribution to customers. Additionally, the locally produced biofuel quantity currently supplied is insufficient to achieve 100% conversion, necessitating imports. That is why the company has invested in a biofuel import system from ports to transfer ethanol-based biofuel to the plant for storage and blending.

We have also modernized our distribution system. Previously, we used an established system for distributing regular gasoline, but now, due to stricter requirements related to biofuel supply, we had to invest in modernizing it to meet our customers’ needs. Additionally, in terms of quality management, the company must also establish systems compliant with Vietnamese and international standards to ensure that products delivered to consumers always meet national standards.

– From a business perspective, what recommendations or suggestions do you have for the government regarding supporting petrochemical companies to improve the application of science and technology and develop the biofuel industry?

Mr. Cao Tuan Si: As a unit producing both mineral fuels and developing biofuels, we have faced some challenges in implementation. One of them is the high cost of ethanol as a raw material, making our production costs less competitive compared to imported ethanol. Regarding management, we propose the government and relevant authorities establish tax mechanisms and royalties to support the national biofuel production industry.

Moreover, since cassava is the main raw material for biofuel production, research is needed to develop high-yield varieties. This would allow farmers to increase their income while helping companies reduce production costs and optimize expenses. Additionally, research should focus on diversifying biofuel production sources, including not only cassava and corn but also biomass. With the abundance of biomass resources such as straw, rice hulls, and other agricultural and forestry by-products, we could ensure a stable supply of biofuels.

Currently, the Dung Quat refinery is conducting research and application studies on methods such as recycling cooking oils and producing products from pangasius fat. Although the research is still in the laboratory stage, the results are very promising, and I am confident that practical applications can be implemented soon. Thanks to this new product, we hope that the government and the Ministry of Industry and Trade will establish supportive policies to facilitate research and development and enable large-scale production in a timely manner.

Thank you, sir!

To ensure sustainable development of E10 bioethanol, appropriate tax and royalty mechanisms are needed to reduce national production costs while simultaneously developing stable sources of raw materials, thus creating conditions for companies to invest in technology and improve their production capacity.

Source: https://congthuong.vn/doanh-nghiep-san-sang-cong-nghe-de-dua-xang-e10-ra-thi-truong-451436.html