The BSR delegate team visits the plant of SDIC Biotech during the trip to China. — Photo bsr.com.vn

HÀ NỘI — PetroVietnam Oil Refinery and Petrochemical Corporation (BSR) is exploring long-term cooperation with China's SDIC Biotech on fuel ethanol supply and green energy solutions as Việt Nam's demand for ethanol rises following the nationwide rollout of E10 petrol.

A BSR delegation led by General Director Nguyễn Việt Thắng recently visited China and held talks with SDIC Biotech in Beijing to explore cooperation opportunities in fuel ethanol and green energy.

As part of the trip, the delegation also conducted a field survey at the SDIC Bioenergy (Jidong) plant in Heilongjiang Province, examining its production capacity, feedstock sources, ethanol production technology, logistics system, quality management and ability to supply fuel ethanol to the Vietnamese market.

According to BSR, Việt Nam's ethanol market is facing significant demand following the nationwide introduction of E10 petrol from June 2026.

Current ethanol demand is estimated at between 80,000 and 100,000 cubic metres per month, while domestic production capacity stands at only around 25,000 cubic metres per month. The shortfall, estimated at approximately 75,000 cubic metres per month, is currently covered by imports.

For BSR alone, ethanol demand for E10 production is expected to reach about 9,000–11,000 cubic metres per month.

By the end of July 2026, BSR had sold approximately 300,000 cubic metres of E10 RON95 petrol.

To secure E100 ethanol for blending, the company has supplemented output from the Dung Quat Biofuel Plant with imports of around 12,000 cubic metres per month, mainly from the United States. The additional supply has helped BSR maintain a stable source of feedstock during the initial phase of its E10 RON95 rollout.

As a result, establishing a stable, reliable and long-term ethanol supply is important for ensuring the blending, production and supply of E10 petrol at the Dung Quat Oil Refinery.

During their discussions, BSR and SDIC Biotech explored the possibility of long-term ethanol supply cooperation, including flexible shipment sizes of around 5,000–5,500 cubic metres per batch.

The two sides also discussed delivery by sea or road and a competitive pricing mechanism that could adapt to market developments.

Beyond fuel ethanol supply, BSR studied SDIC Biotech's experience and capabilities in developing second-generation ethanol from agricultural biomass, sustainable aviation fuel (SAF), green methanol and carbon-emission reduction solutions.

These areas are in line with BSR's plans to research and develop new energy products and advance its energy transition in the coming period.

The visit provided BSR with an opportunity to directly assess SDIC Biotech's production and supply capabilities, while the discussions opened up potential areas of cooperation ranging from fuel ethanol supply to technical exchanges, technology transfer and research into biofuel solutions.

Through stronger cooperation with capable regional partners, BSR aims to diversify its ethanol supply sources and enhance the resilience and stability of its supply chain.

The company also plans to gradually broaden cooperation in green energy, biofuels and emission-reduction solutions as part of its energy transition and sustainable development orientation. — BIZHUB/VNS