Novonesis and Nha Xanh Vietnam partner to strengthen Vietnam's biofuel production

Novonesis and Nha Xanh Vietnam partner to strengthen Vietnam's biofuel production

Danish biosolutions leader Novonesis and Vietnamese biofuel producer Nha Xanh Vietnam signed an MoU on June 17 to advance domestic biofuel production and support Vietnam's long-term energy security goals

The agreement was signed at the Danish Embassy in Hanoi in the presence of Danish Ambassador to Vietnam Nicolai Prytz, marking a new milestone in Danish-Vietnamese cooperation on sustainable energy development.

Under the MoU, the two parties will explore opportunities to improve ethanol yields, optimise production efficiency, and reduce manufacturing costs through the application of Novonesis' biosolutions technologies in corn- and cassava-based ethanol production.

The partnership comes as Vietnam accelerates its energy transition and expands the use of ethanol-blended fuels, including E10 petrol. Enhancing the competitiveness of domestic biofuel production is expected to contribute to greater energy security, lower dependence on imported fossil fuels, and more efficient use of agricultural resources.

Do Van Tuan, chairman of Nha Xanh Vietnam, said the collaboration combined international biosolutions expertise with the company's production capabilities and experience in applying enzyme and yeast technologies throughout the ethanol manufacturing process.

"As Vietnam increases biofuel consumption, domestic production will become increasingly important in strengthening energy security and reducing reliance on fossil fuels. We expect this partnership to improve operational efficiency, enhance supply autonomy, and expand the availability of locally produced ethanol to support the country's biofuel transition," Tuan said.

According to Novonesis, its biosolutions can help biofuel producers generate higher ethanol yields from the same volume of feedstock while lowering energy consumption and production costs.

Xiaofeng Ye, vice president of Planetary Health Biosolutions APAC at Novonesis, said Vietnam possessed strong fundamentals for developing a competitive biofuels industry.

"With advanced biosolutions, producers can achieve more with fewer resources. A more diversified energy mix will strengthen Vietnam's energy security while supporting a resilient and competitive economy. We are pleased to work with Nha Xanh Vietnam in advancing the country's energy transition," Ye said.

The cooperation is also expected to create additional demand for locally grown cassava and corn, generating new market opportunities for farmers and increasing the value derived from domestic agricultural resources.

Ambassador Nicolai Prytz highlighted the growing role of Danish technologies in supporting Vietnam's sustainability agenda.

"Denmark is home to Novonesis, one of the world's leading biosolutions companies. This partnership demonstrates how Danish expertise and Vietnamese industry can work together to enhance energy security, improve resource efficiency, and encourage sustainable growth," he said.

The Danish Embassy noted that the initiative aligned with broader bilateral cooperation efforts in energy, green growth, innovation, and sustainable food systems.

Globally, biosolutions are estimated to have the potential to reduce carbon emissions by around 4.3 billion tonnes by 2030, equivalent to approximately 8 per cent of current worldwide emissions.

Novonesis said its biofuel solutions has helped save around 80 million tonnes of CO₂ equivalent in 2025, comparable to removing roughly 30 million gasoline-powered vehicles from roads.

VIR