Dung Quat and the E10 Supply Chain: The Logistics Link Behind Green Fuel

From market policy to the pressure of supply organization

From 1 June 2026, E10 biofuel has been widely sold nationwide, opening a new phase for Vietnam’s fuel market. Yet a new energy product can only enter daily life when supply is stable, quality is controlled, and the distribution system can operate continuously. With E10, the equation is more complex than for conventional gasoline because the supply chain includes fuel ethanol - a component linked not only to refining and petrochemicals, but also to agriculture and feedstock logistics.

Within this value chain, Dung Quat Refinery of Binh Son Refining and Petrochemical Joint Stock Company (BSR) plays the central role in receiving ethanol, blending it with base gasoline, and bringing E10 RON95 to the market. To prepare for mass commercialization, BSR reviewed its tank systems, storage infrastructure, blending facilities, pipelines, jetty and dispatch plans. This was supply-chain preparation, in which every link must be aligned in capacity, timing, standards and transport mode.

A notable milestone came in May 2026, when Dung Quat Refinery began selling E10 RON95 by both road and sea. On 20 May 2026, the first batch of E10 RON95 was successfully shipped through the refinery’s Jetty, opening large-scale supply capacity for fuel wholesalers nationwide. According to the plan, BSR’s monthly E10 RON95 output reaches about 80,000 - 100,000 m3, of which 15,000 - 20,000 m3 is dispatched by road and the remainder mainly by sea.

Dung Quat ethanol: the upstream link of the E10 chain

If Dung Quat Refinery is the blending and dispatch hub, Dung Quat Bio-Ethanol Plant, operated by Central Biofuels Joint Stock Company (BSR-BF), is the upstream link of the regional E10 chain. After a period of suspension, the plant was maintained, repaired and restarted in early 2026, at precisely the time when domestic demand for ethanol increased as E10 entered broad commercial distribution.

The model’s most distinctive advantage lies in the proximity between the ethanol plant and the refinery. Once produced, ethanol can be transferred directly to the refinery’s receiving and blending system without passing through multiple intermediate transport stages. In energy logistics, a shorter distance does not only mean lower transport costs; it also means faster supply, fewer risk points and greater flexibility in coordinating production, storage and dispatch.

BSR-BF’s restart has been implemented through a gradual capacity ramp-up to stabilize the system. In March 2026, the plant reached about 60% of its design capacity, then increased to 75 - 80% and continued to rise in June. At maximum operation, it can produce about 330 m3 of ethanol per day. In parallel, the company is optimizing enzymes, improving sand separation, increasing distillation capacity, reducing energy consumption, and treating wastewater and cassava residues in line with circular economy principles.

From energy logistics to green transition capability

A sustainable E10 chain cannot be viewed only from the factory gate. Its starting point is the feedstock area. For BSR-BF, cassava chips remain the main input, sourced from the Central Highlands as well as Laos and Cambodia. At the same time, the company is studying the possibility of using imported high-yield corn when market conditions are favorable. This flexible approach reduces dependence on a single input, sourcing region or transport route.

From agricultural feedstock to ethanol production, from the blending system at Dung Quat Refinery to tank trucks, sea vessels, wholesale depots, dealers and retail stations, E10 reflects a multi-layered supply chain. The first layer is agriculture and feedstock logistics; the middle layer is processing, refining and petrochemicals; the final layer is transport, fuel trading and the consumer. Only when these layers are connected smoothly can green fuel move beyond policy and become a market product.

Images from Dung Quat reveal a distinctive coastal industrial landscape: large storage tanks, pipelines, the jetty, process towers, tank trucks and workers performing field operations. At the other end of the chain is a consumer refuelling at a retail station. The distance between these two images is the space of logistics - quiet, often unseen, yet decisive in bringing fuel to market at the right time, with the right standard and at the right scale.

E10 tests not only production capacity, but also the ability to manage trust. Consumers need confidence in fuel quality; distributors need confidence in supply; producers need confidence in feedstock stability; and regulators need evidence that the whole system can respond. The E10 chain in Dung Quat should therefore be seen as an integrated operating structure in which technology, logistics, market organization and communication all matter.

The E10 story in Dung Quat is a representative slice of Vietnam’s energy transition. This transition cannot rely only on emission-reduction targets or green consumption trends; it must be built on actual supply capability. A green product becomes meaningful only when it can be produced consistently, transported efficiently, controlled tightly and distributed widely enough for consumers to access it conveniently.

Dung Quat has several notable conditions for this journey: the ethanol plant is located next to the refinery; blending and dispatch infrastructure is organized on an industrial scale; road and sea transport are combined; feedstock is being diversified; and technical improvements as well as circular-economy solutions are being deployed. From ethanol to E10, from coastal storage tanks to urban petrol stations, logistics is not standing behind the energy transition; it is becoming the condition that allows the transition to enter daily life safely, steadily and at scale.

By Hai Ly