Loss-making Dung Quất Biofuel plant resumes operation

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Engineers of Dung Quất Biofuel plant monitor the production system. - Photo bsr.com.vn
Viet Nam News

HÀ NỘI — Dung Quất Biofuel plant resumed operations on Sunday, after operations were halted three years ago for inefficiency.

Phạm Văn Vương, director of the Central Biofuel Joint Stock Company (BSR-BF), which operates Dung Quất Biofuel plant, said that the plant was expected to release pure Ethanol 100 on Wednesday.

Production would continue until October 28, then be halted for several days so that necessary technical checks and maintenance could be performed before official operation begins, he said.

During the first two weeks, the plant is expected to run at 65 per cent of capacity to produce around 2,000 tonnes of Ethanol.

The output will increase to 7,000 cu.m for the two remaining months of this year and 35,000 cu.m in 2019.

Dung Quất Biofuel plant was one of 13 inefficient projects under the management of the Ministry of Industry and Trade.

The plant halted operations in April 2015. As of 2016, its outstanding loans at PVCombank, Vietcombank and Oceanbank totaled VNĐ1 trillion (US$43.5 million).

In June, BRS-BF signed a co-operation agreement with Sài Gòn Sundries Investment and Trading Joint Stock Company (Tocontap) to help Dung Quất Biofuel plant resume production.

Accordingly, Tocontap would provide raw materials for the plant and distribute Ethanol produced by the plant for a period of 10 years. — VNS

Nguồn: vietnamnews.vn