Dung Quat Accelerates E100 Supply for E10 Gasoline

Restoring Capacity and Strengthening Domestic Supply

At the working session, Deputy Minister Nguyen Sinh Nhat Tan commended BSR, Central Biofuels Joint Stock Company (BSR-BF) and their partners for restoring the Dung Quat Biofuel Plant. Following repairs, maintenance and trial operations, the facility has gradually increased throughput and supplied E100 to the Dung Quat Oil Refinery for E10 RON95 blending.

With a design capacity of 330 cubic metres per day, Dung Quat is the largest of the ethanol facilities inspected by the Ministry of Industry and Trade in central Vietnam. In June 2026, the Dung Quat, Quang Nam and Dong Nai plants produced a combined 20,875.4 cubic metres of E100, equivalent to about 83.8% of their monthly design capacity.

For BSR, domestic E100 supply is especially important while the Dung Quat Oil Refinery is operating at an average of 124% of design capacity in the first seven months of 2026. Stable ethanol supply reduces import dependence, optimizes blending costs and supports reliable E10 production as the market expands.

Connecting Ethanol, Refining and Distribution

Dung Quat’s greatest advantage is its potential for an integrated supply chain. E100 produced at the biofuel plant can be transferred directly to the refinery’s storage and blending system, reducing intermediate logistics costs, transport risks and storage time. This creates a continuous chain from agricultural feedstock to ethanol, base gasoline, E10 blending and market distribution.

Since the fourth quarter of 2025, BSR has operated a road-loading system for E10 RON95 with capacity of about 10,000 cubic metres per month. In May 2026, it shipped its first 12,000-cubic-metre E10 cargo by sea, significantly expanding market reach. Across both channels, BSR can produce and dispatch about 80,000–100,000 cubic metres per month.

The chain also creates value beyond the petroleum sector. Stable ethanol production supports demand for cassava chips, corn and biomass, encourages contracted feedstock zones and promotes more sustainable agriculture. By-products such as carbon dioxide can also be recovered, improving economics and reducing emissions.

Removing Bottlenecks for Sustainable E10 Growth

Despite encouraging progress, biofuels still face major constraints. The Deputy Minister called on producers to review capacity comprehensively and build stable E100 chains from feedstock and processing to logistics and consumption, while strengthening cooperation with fuel distributors and local authorities.

Access to capital, feedstock costs, competition from imported ethanol, long-term offtake contracts and pricing mechanisms require coordinated solutions. Domestic cassava supply remains fragmented and productivity is uneven. Without sustainable feedstock zones, plants will struggle to maintain optimal utilization and competitive costs.

The regulatory framework for petroleum trading should also support biofuel development. Tax, fee, pricing and market-stabilization policies need to balance the interests of the state, businesses and consumers while providing sufficient incentives for E100 production, blending infrastructure and E10 distribution.

At company level, BSR must continue improving plant efficiency, ethanol quality control, storage capacity and logistics. Diversifying feedstocks, utilizing agricultural residues, developing next-generation technologies and improving carbon-dioxide recovery will determine the long-term competitiveness of domestic biofuels.

Operating the Dung Quat Biofuel Plant at maximum capacity does more than add E100 supply for E10 gasoline; it restores a critical link in Vietnam’s green-energy chain. When ethanol production is tightly connected with refining, logistics, agriculture and consumption, the country can reduce import dependence, strengthen energy resilience and advance the circular economy. Dung Quat is therefore not simply a restarted plant, but a platform for building a proactive, sustainable and nationally competitive biofuel supply chain.