Vietnam’s Binh Son Refining and Petrochemical JSC (BSR) and China’s SDIC Biotech Investment Co Ltd are exploring cooperation on fuel ethanol supply and wider biofuel technologies as demand rises following Vietnam’s nationwide rollout of E10 gasoline.
BSR said a delegation led by its general director Nguyen Viet Thang recently held discussions with SDIC Biotech in Beijing and visited the company’s SDIC Bioenergy (Jidong) plant in Heilongjiang province. The talks focused initially on securing ethanol supplies for Vietnam while also examining potential cooperation in second-generation ethanol, sustainable aviation fuel (SAF), green methanol and emissions-reduction technologies.
The discussions come as Vietnam’s ethanol market faces a substantial gap between demand and domestic production capacity. BSR estimates current ethanol demand at 80,000-100,000 cubic metres per month, compared with domestic production capacity of about 25,000 cubic metres per month.
Vietnam ethanol demand outpaces domestic capacity
The resulting shortfall of approximately 75,000 cubic metres per month is currently being covered through imports, according to BSR.
The supply gap has become particularly relevant for BSR as the company prepares to meet the ethanol requirements associated with E10 gasoline production at its Dung Quat Refinery.
BSR estimates that its own ethanol requirement for E10 production will be around 9,000-11,000 cubic metres per month. The company said establishing a stable and reliable long-term supply is important to maintaining the blending, production and distribution of E10 gasoline from the refinery.
The discussions with SDIC Biotech therefore centre on developing a potential supply arrangement that can respond to BSR’s operational requirements while remaining commercially competitive.
BSR seeks flexible ethanol deliveries
Under the potential cooperation discussed by the two companies, ethanol shipments would be structured around volumes of approximately 5,000-5,500 cubic metres per shipment.
BSR said potential deliveries could be made by either sea or road, with pricing based on market conditions. The proposed flexibility would allow the supply arrangement to accommodate BSR’s requirements while diversifying the sources available to the Vietnamese fuel market.
During its visit to SDIC Bioenergy (Jidong), the BSR delegation examined the company’s production capacity and feedstock sources, as well as its ethanol technology, logistics systems and quality-management practices.
The visit also allowed BSR to assess SDIC Biotech’s ability to supply fuel ethanol to Vietnam directly and provided a basis for discussions on potential technical cooperation and technology transfer.
Cooperation extends beyond conventional ethanol
Fuel ethanol supply is not the only area being considered by the companies.
BSR also examined SDIC Biotech’s experience in developing second-generation ethanol from agricultural biomass, as well as its capabilities in SAF, green methanol and carbon-emissions reduction solutions.
Second-generation ethanol uses non-food lignocellulosic biomass and agricultural residues as feedstock, potentially broadening the range of raw materials available for biofuel production. The source, however, does not specify any particular second-generation ethanol project that BSR and SDIC Biotech have agreed to develop.
For BSR, these technologies are linked to its plans to research new energy products and expand its activities in the energy transition.
The company said the China visit created opportunities for cooperation across fuel ethanol supply, technical exchanges, technology transfer and research into biofuel solutions.
E10 rollout increases importance of ethanol supply
Vietnam’s nationwide rollout of E10 gasoline in June 2026 has increased the importance of ethanol availability for fuel producers and distributors.
The scale of the supply gap identified by BSR means imports currently play a significant role in meeting national ethanol requirements. For refinery operators, securing predictable supplies is consequently becoming an important part of maintaining blended-fuel production.
BSR’s discussions with SDIC Biotech also point to a broader regional approach to addressing this challenge. Rather than focusing solely on domestic production, the company is examining partnerships that could diversify supply while building access to additional biofuel technologies.
BSR said strengthening cooperation with capable regional partners could improve the resilience and stability of its ethanol supply chain while creating opportunities to expand into other green-energy and emissions-reduction areas.
Bioenergy Business Analysis
The BSR-SDIC Biotech discussions highlight the immediate supply challenge created by Vietnam’s expanding ethanol-blending market. With demand estimated at 80,000-100,000 cubic metres per month against domestic capacity of around 25,000 cubic metres, imports are currently filling a substantial portion of the market requirement.
For BSR, the issue is particularly operational because the company estimates its Dung Quat Refinery will require 9,000-11,000 cubic metres of ethanol each month for E10 production. A longer-term supply relationship could therefore help address a defined refinery requirement while also diversifying BSR’s sources of ethanol.
The wider technology discussions are strategically significant because they extend beyond immediate fuel supply. BSR’s interest in agricultural-biomass-based second-generation ethanol, SAF, green methanol and emissions-reduction solutions suggests that the company is examining a broader portfolio of energy-transition technologies.
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