"Viet Nam has an abundant supply of raw materials from which to develop bio-fuel, such as maize, rice, cassava, coconut or sugarcane, but applying alternative energy source will require new strategies," said Nguyen Phu Cuong, deputy general director of the Ministry of Industry Department of Science and Technology.

Addressing the bio-fuel development symposium on Thursday co-organised by the ministry and the Bosch group, a German-based global supplier of services and technology, Cuong said bio-fuel potential was huge because of the large area devoted to farm produce cultivation.

Made from biomass, such as crop, plant matter or organic waste, bio-fuels generally produce less carbon dioxide over their life cycle compared to gasoline or diesel and can be used in today’s vehicles at low concentration blends with petrol or diesel.

The cultivation area of maize covers 909,000ha with an annual yield of 2.9 million tonnes while nearly 7.5 million ha was for rice, 136,000ha for coconut, 372,000ha for cassava and 306,000 ha for sugarcane, figures show.

Cuong said that bio-fuel development was critical considering the limited supply of current energy sources as well as strong demand for energy consumption.

In 2005, the country had to import 11.5 million tonnes of crude oil-derived products, 2.6 million tonnes of gasoline and nearly 6 million tonnes of diesel, he said.

"The demand for energy consumption per capita is expected to reach 354-377 kgoe (kilogram of oil equivalent) by 2010, more than double the 2005 figure and just half the amount forecast for 2020."

Industry would be the biggest power consumer, representing 46 per cent of the total consumption share among sectors by 2020, followed by transport, households and agriculture, he said.

However, Cuong said there was a need to issue policies and regulations on bio-energy and bio-fuels and create environmental standards on its use.

He cited outdated technology in ethanol and bio-diesel production as well as a lack of distribution systems as holding back biofuel development.

Cuong also cited low-yield crops, unskilled labourers and other restrictions in research and development, as well as inadequate legal framework, as major setbacks to overcome.

Getting gas

The Ministry of Industry is submitting a plan on a bio-fuel development strategy until 2015 to 2025 for Government approval.

The plan, aimed to ensure energy security and environmental protection, calls for development of raw material supply areas for bio-fuel production as well as additives for a bio-fuel-gasoline mixture as an environmentally friendly fuel for vehicles.