Chinese technology blamed for substandard products at biofuel plants

Four out of seven biofuel plants have been found using Chinese technology, while three others using technology imported from China and other countries such as the US, Denmark and India.

Chinese technology blamed for substandard products at biofuel plants
 

The news that the VND2.2 trillion Dung Quat Bioethanol Ethanol run by BRS-BF has halted its operation did not surprise anyone, because the plant has been ‘at the point of death’ since April 2015.

PV Oil, a subsidiary of the national oil & gas group PetroVietnam, the owner of Dung Quat, is also the major shareholder of OBF which runs the ethanol plant in Binh Phuoc province. PVB runs the biofuel in Phu Tho province.

Besides the three biofuel plants, Vietnam also has four other plants of this kind – Dai Tan run by Dong Xanh JSC, Dai Viet, Dak To and Tung Lam.

The common feature of the seven plants is that they all use at least some Chinese technology, while four of them use 100 percent of Chinese technology.

Four out of seven biofuel plants have been found using Chinese technology, while three others using technology imported from China and other countries such as the US, Denmark and India.

The four plants, according to a Ministry of Industry and Trade’s report, include the VND575 billion Dai Tan Plant in Quang Nam province which has capacity of 100,000 tons per annum; the VND500 billion Dai Viet Plant in Dak Nong province with the capacity of 55,000 tons; Dak To Plant in Kon Tum 50,000 tons and Tung Lam 60,000 tons.

Of these, Dai Viet and Dak To churn out the products which cannot meet standards for making E5 petrol, which has been rejected by domestic enterprises.

With Chinese technology and equipment mostly from China, Dai Viet became operational in 2011. However, it can only make 96 percent ethanol which cannot meet requirements, according to Bizlive and some other local newspapers. Experts say in order to be able to make standard ethanol, the plant needs to have water separation equipment.

Therefore, the plant has halted operation since April 2013 because of lack of capital.

Similarly, Dak To, which became operational in December 2012, also can only make ethanol 96 percent. Now it cannot make ethanol for biofuel, but only for food processing.

Meanwhile, Nguyen Trong Toan, director of Dai Viet Plant, talking to Dat Viet’s reporters, said he did not know why some local newspapers reported that Dai Viet’s technology and the products cannot meet the requirements.

“We imported 100 percent brand new equipment. And when we put the equipment into operation, we received good products with quality far exceeding our expectations,” he said. 

Toan said the plant does not intend to make ethanol for biofuel at this moment because Toan anticipates an oversupply.

He said Dai Viet would only begin making ethanol for biofuel if E5 completely replaces A92 petrol.

Source: Vietnam Net