PetroVietnam sets up biofuel affiliate company

Hanoi (VNA) - Four subsidiaries of the Vietnam National Oil and Gas Group (PetroVietnam) have decided to establish a company to produce and distribute biofuels.

Located in Binh Son district of central Quang Ngai province, the
PetroVietnam Biofuel Joint Stock Company has a charter capital of 45 billion
VND (roughly 2.7 million USD).

The PetroVietnam General Services Joint Stock Corporation (Petrosetco)
will contribute the largest part of the capital at 51 percent, while the
PetroVietnam Oil Corporation will hold 29 percent; the Binh Son Refining and
Petrochemical Co. Ltd., 15 percent; and the PetroVietnam Finance Joint Stock
Corporation (PVFC), 5 percent.

The company will produce ethanol from cassava, which is used to mix with
gasoline to help the country reduce dependence on fossil fuels and mitigate
environmental pollution.

In November 2007, the government approved a biofuel development project
until 2015 with a vision through 2025 to produce different kinds of
renewable energy and partly replace traditional fuels.

As part of the project, around 250,000 tonnes of ethanol and vegetable oil
will be produced to meet 1 percent of the country's petroleum demand by
2015.-Enditem