Hanoi, Ho Chi Minh City, and Hai Phong are set to usher in a new era of green fuel with the launch of E10 biofuel, a blend consisting of 10% ethanol and 90% traditional gasoline, on August 1. This initiative marks Vietnam’s inaugural step toward a nationwide transition to eco-friendly fuels, which is slated to gain momentum by 2026.
E10 is not just a nod toward reducing CO₂ emissions; it’s an ambitious project aimed at bolstering domestic ethanol production and diversifying energy sources. The plan is to gradually phase out conventional gasoline in favor of this greener alternative.
Leading the charge are Vietnam’s two largest fuel distributors, Petrolimex and PVOIL, both of which are gearing up to implement E10 on a larger scale by August 2025. Petrolimex has been busy upgrading storage tanks and refining mixing technology in Ho Chi Minh City, ensuring a consistent supply aligns with its rollout strategy. Meanwhile, PVOIL is focusing its efforts on establishing a solid presence in Hanoi and Hai Phong.
According to PVOIL chairman Cao Hoai Duong, the August 1 launch serves to introduce consumers to the novel fuel. To further ensure that E10 reaches all corners of the market, the company plans to provide blending services to other distributors, ensuring a stable product supply.
Petrolimex is optimistic that E10’s cost-effectiveness and environmental advantages, compared to traditional RON95 gasoline, will win over consumers. “What’s not to love about saving money while saving the planet?” they might just say.
As the countdown to launch begins, Vietnam is evaluating its ethanol supply to prepare for the upcoming rollout and its future expansion. Presently, the country boasts six ethanol plants, with two operational facilities producing approximately 100,000 cubic meters annually. At full throttle, Vietnam could generate up to 500,000 cubic meters per year, theoretically meeting the E10 blending demands.
During the initial phases, the supply chain may lean on imported ethanol. However, the long-term vision is clear: Vietnam aims to rely predominantly on domestic production, establishing a robust agricultural-energy value chain. This transition could create stable demand for feedstock like cassava and corn, whose prices have a habit of performing acrobatics.
In the backdrop of these advancements, Vietnam has committed to achieving carbon neutrality by 2050, making the emergence of E10 a critical component in its green energy puzzle.
How will E10 biofuel benefit consumers in Vietnam?
E10 is expected to offer lower costs and greater environmental benefits compared to traditional gasoline, making it an attractive option for consumers.
What is the production capacity of Vietnam’s ethanol plants?
Currently, Vietnam has six ethanol facilities, with two in operation that can produce around 100,000 cubic meters annually, and a potential full capacity of 500,000 cubic meters per year.
What are the long-term goals for Vietnam’s biofuel sector?
Vietnam aims to establish a self-sufficient agricultural-energy value chain and ultimately achieve carbon neutrality by 2050, relying predominantly on domestic ethanol production.
