PV Oil to increase stake in Vietnamese ethanol plant

PV Oil, a subsidiary of state-run PetroVietnam, is planning to buy out a 71% stake in a joint venture ethanol plant in the southern province of Binh, Vietnam.

The Binh Phuoc ethanol factory, built by Orient Bio Fuels, a joint venture between Itochu, PV Oil and Licogi 16, started commercial operations in early 2013, with the intention of producing up to 80,000 tonnes per year of ethanol.

The plant's operations were suspended in March 2013 as demand for ethanol in the domestic market fell.

Itochu, a Japanese trading firm, now intends to sell its 49% stake in the $80 million (€58 million) ethanol plant in Vietnam due to weak sales.

The ethanol plant has the capacity to produce 100 million litres per year of green fuel from cassava.