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Tung Lam is the only ethanol supplier in Vietnam, which recently adopted E5 policy

June 24, 2019

2 Min Read
group of people inside a side with corn planter in background
U.S. Grains Council photo

Vietnam’s sole ethanol producer is preparing to test U.S. corn as a feedstock with a hammer mill purchased during a mission to the United States in June. The mission is part of the U.S. Grains Council’s efforts to support Vietnamese government and industry members as they work to increase ethanol use under a national E5 blend mandate.

Tung Lam Company is the only company producing ethanol in Vietna, using cassava as a primary feedstock. Prices of domestically-produced cassava have increased since early 2018 due to a demand surge from China and other Southeast Asian countries, leaving limited supply available. As a result, Tung Lam has considered converting cassava-based ethanol production to corn-based and began trial production earlier this year.

USGC organized a technical study mission to Indiana for a group of senior leaders from Tung Lam Company to learn more about the equipment and technology needed to increase corn-based ethanol production efficiency, learn from U.S. ethanol producers and study U.S. corn crop production. The team also attended the International Fuel Ethanol Workshop & Expo in Indianapolis to gain exposure to and learn from U.S. ethanol experts.

“This conference is the best place for Tung Lam to learn how to convert their existing cassava-based ethanol plants to using corn,” said Manuel Sanchez, USGC regional director for Southeast Asia. “This visit is an important component of the Council’s fuel ethanol promotion in Vietnam to help the country meet its current ethanol mandate and move toward higher blends.”

The hammer mill Tung Lam officials purchased will enable the company to utilize corn as well as cassava in their plant.

“This front-end equipment will give Tung Lam the capacity to grind up to 150,000 metric tons (5.9 million bushels) of corn per year at their ethanol plant in Dong Nai,” Sanchez said. “The company also purchased 40,000 tons (1.57 million bushels) of U.S. corn during their time in Indiana.”

As the fastest-growing economy in Southeast Asia, Vietnam’s total gasoline consumption is expected to grow by nearly 15% by 2022.

Vietnam rolled out an E5 ethanol policy on Jan. 1, 2018, with a goal to move to E10 by 2020.

“As the only ethanol supplier in Vietnam, Tung Lam’s operation is critical to Vietnam’s E5 implementation and the Council’s ethanol promotion,” Sanchez said. “Their ability to provide a consistent supply of fuel ethanol to the domestic market will pave the way for increased blend rates and create new demand for corn imports.”

Source: U.S. Grains Council, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. 

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