Petrovietnam, Brazil's FS seek cooperation in biofuel production

Le Xuan Huyen, deputy CEO of Petrovietnam, together with representatives from the state-owned group's member units, last week met with representatives of Brazil’s leading ethanol producer FS in Hanoi to discuss cooperation in biofuel production.

At the meeting on August 28, FS vice president Daniel Lopes expressed a strong interest in forming a strategic partnership with Petrovietnam in production and distribution of biofuels, especially E10 gasoline, aligning with Vietnam’s clean energy and carbon neutrality goals.

Founded in 2017, FS is the first company in Brazil to produce bio-ethanol entirely from corn – a different approach compared to most other plants in the country which primarily use sugarcane.

Currently, FS operates three large-scale plants in Lucas do Rio Verde, Sorriso, and Primavera do Leste, all located in Mato Grosso – Brazil’s largest agricultural hub.

FS’s total production capacity reaches 2.3 billion liters of ethanol per year, making it the fourth-largest ethanol producer in Brazil. In addition to biofuels, FS also produces biomass-based electricity from corn by-products and supplies DDG (a high-nutrient byproduct for animal feed) and corn oil for the food processing and pharmaceutical industries.

During the discussion, deputy CEO of Petrovietnam Le Xuan Huyen gave FS leaders an overview of Petrovietnam’s operations and its key areas of involvement in biofuel production, including E5 and E10 gasoline, while also sharing the group's future development strategies.

In the biofuel sector, PVOIL, a subsidiary of Petrovietnam, has established an E5 RON92 gasoline blending system at 11 petroleum depots nationwide, with a total ethanol (E100) storage capacity of approximately 11,240 cubic meters.

The ethanol supply is secured from both domestic and international sources, ensuring stable market demand. The consumption of E5 gasoline has remained positive in recent times, contributing to the promotion of clean fuels and helping PVOIL expand its market share.

Looking ahead to 2026, when the government plans to fully replace conventional gasoline with E10, PVOIL has begun piloting E10 gasoline sales and is preparing to expand its blending capacity by an additional 800,000 cubic meters per year to ensure a continuous supply across its system.

Additionally, another subsidiary Binh Son Refining and Petrochemical JSC (BSR), the operator of Vietnam’s first oil refinery Dung Quat, plays a key role in ensuring national energy security through the operation of the Dung Quat Refinery, which has a capacity of 6.5 million tons per year and meets over 30% of the domestic petroleum demand.

Between 2022 and 2025, BSR has maintained stable production, carried out refinery upgrade and expansion projects, and diversified its products toward greener and cleaner alternatives.

Notably, the company has restarted the Dung Quat Bio-Ethanol Plant with a capacity of 100 million liters per year, and is ready to import and blend E10 gasoline from 2026. It has also produced Vietnam's first batch of Sustainable Aviation Fuel (SAF) meeting international standards, which is being supplied to Vietnam Airlines.

In parallel, PVChem, the chemical arm of Petrovietnam, focuses on the business of chemicals, petrochemicals, oil and gas equipment, minerals, and industrial gases, serving the oil and gas sector and other industries. The company is actively researching energy transition projects and renewable/recycled products, including biofuels.

PVChem is currently implementing several key projects such as industrial gas production and trading, hydrogen peroxide manufacturing, PET chip, PP compound, biofuel production, and chemical manufacturing – forming new growth drivers for the production sector and meeting the development needs within Petrovietnam’s production-service value chain.

Huyen expressed his hope that, through this exchange and the strong Vietnam-Brazil partnership, cooperation between Petrovietnam and FS in biofuel and clean energy development will yield positive results and open a new chapter of mutual growth between the two enterprises.

E10 biofuel is planned to be sold nationwide from January 1, 2026 for use in petrol-powered motor vehicles nationwide, according to a draft circular of Vietnam's Ministry of Industry and Trade (MoIT).

The MoIT is seeking public feedback on a draft circular which outlines the roadmap for blending biofuels with traditional fuels in Vietnam.

Accordingly, biofuels include E10, E15, and other types of petrol made from fuel ethanol and mineral petrol blended in different ratios.

The draft stipulates that from January 1, 2026, E10 will be the sole fuel available nationwide for motor vehicles using petrol engines.

From January 1, 2031, Vietnam will switch to E15 or other biofuels regulated by the MoIT, based on the development of motor vehicles, socio-economic conditions, biofuel production and import capacity, and energy security requirements.

Since August 1, several key fuel distributors have piloted the sale of E10 in Ho Chi Minh City, Hanoi, and Hai Phong.