Feasibility Study on Rice Based Fuel-Ethanol Production Project in Vietnam

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of the researchFeasibility Study on Rice Based Fuel-Ethanol Production Project in Vietnam
FYFY 2005
Main research orgnisationSojitz Research Institute, Ltd.
Research partner(s)Vinafood2 (Vietnam Southern Food Corporation), CLRRI (Cuulong Delta Rice Research Institute), CTC (Center for Consultancy, Training and Technology Transfer)
Location of the projectVietnam (ong An province)
Summary of the research report (PDF)Summary
Description of the projectThe project is to produce anhydrous ethanol from rice. The project plant will be built in an industrial zone of Long An province, in the Mekong Delta region of South Vietnam. The main agricultural product in the region is paddy rice and the project produces bio-ethanol from broken rice, which is a by-product of rice milling. The project plant has a capacity of 100,000 liters of anhydrous ethanol per day, and rice-husk power generation facility is installed within the project site to supply electricity to the plant. The produced ethanol is sold to petroleum companies. The bio-ethanol is blended with gasoline at a rate of 10 percent and used as a transportation fuel in Vietnam. The project promotes mitigation of greenhouse gas emissions through partially substituting gasoline with bio-ethanol.
Sector of the projectBiomass Utilisation
Duration of the project activity/ crediting period25years / 7years (renewable)
Baseline methodology/additionalityA new baseline methodology is proposed to apply to the project activity.
1) Baseline scenario
The proposed project meets the each applicability condition, and then alternative scenarios given in the new baseline methodology are examined one by one. Finally, the continuation of a current activity, which is the use of gasoline, is identified as the baseline scenario for the project activity.
2) Additionality
“Tool for the demonstration and assessment of additionality罵och is applied.
Biomass derived ethanol currently manufactured in Vietnam is not anhydrous ethanol, thus it cannot be used as bio-fuel. Dehydration technology is still under research and is not in the practical stage. The project includes technology transfer of dehydration technology, and therefore technological barrier exists to implement type of the proposed project activity. Besides, this is the first bio-ethanol project and there are not any other activities similar tothe proposed project activity.
Therefore, the project is considered to be additional.
Estimation of GHG emissionsThe GHG emission reductions of the project activity are the differences between the baseline emissions and the total project activity emissions, which are the sum of project emissions and leakage.
Annual GHG emission reductions = Baseline emissions - Project emissions
= 53,431-105 [tCO2e/y]
= 53,326 [tCO2e/y]
Monitoring methodologyMonitoring will be implemented based on the new monitoring methodology. Major parameters are as follows;
- Volume of bio ethanol sold in a certain year
- Diesel oil consumption for raw material transportation
- Captive power generation at the bio-ethanol plant
Environmental impactHowever the project plant will be built in an industrial zone and it is not needed to perform an EIA procedure, because EIA will be done when the industrial zone is developed.
The project plant will be designed following all the environmental regulations and standards in Vietnam, thus it can minimize the impact of the project activity on the ambient environment.
In regard to the effluent from fermentation process, it contains high percentage of protein and suitable for animal feed. The effluent is to be separated with moisture and solid portion will be sold to domestic market. Only separated water, value under emission standard in Vietnam, will be emitted to river.
Issues and tasks for project implementationDue to the lack of molasses in domestic market and a sharp rise of price of international market, ethanol price in Vietnam is showing sudden rise as well.
The feedstock of the project is broken rice, which Vietnam has enough resources, therefore this project will give Vietnam not only to have self-sufficient position of ethanol but also to be a potential exporter of ethanol.