Loss-making Dung Quat Biofuel plant resumes operation
Loss-making Dung Quat Biofuel plant resumes operation
Dung Quat Biofuel plant resumed operations on Sunday, after operations were halted three years ago for inefficiency.
Pham Van Vuong, director of the Central Biofuel Joint Stock Company (BSR-BF), which operates Dung Quat 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 Quat 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 VND1 trillion (US$43.5 million).
In June, BRS-BF signed a co-operation agreement with Sai Gon Sundries Investment and Trading Joint Stock Company (Tocontap) to help Dung Quat 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.
