Lao State Fuel Enterprise and GAIA Petro, Korea has formed a joint venture of US$15 million on a bio-energy project (Bio-Oil). Commercial production of the bio-fuel is expected to be commenced in 2023.
An MoU on the feasibility study for the project was signed in Vientiane on Jun 6 between Director of Lao State Fuel Enterprise Sisangkhom Khotyotha and President of the Korea-Laos Industrial and Cultural Exchange Association Sam Maeng.
“This project will play an important role in infrastructure development in the Lao PDR, mitigating the country’s reliance on imported fuel, which is currently in short supply,” said Mr Sam Maeng. “Most fossil fuel products in Laos are imported from abroad. Our bio-energy programme will use two natural sources: combustion and fermentation (ethanol) by using state-of-the-art technology to produce high-quality bio-petrol.”
“After signing this MOU, we will spend about 3 months to study into the feasibility of the project. All information we need is available at hand right now,” said Sam Maeng. “We have a good partner Lao State Fuel Enterprise, which has a strong market potential and already has an oil depot. Putting together technology, machinery and equipment will make fuel production faster.”
The production capacity of the Bio-Oil facility will be 1 million litres of high quality bio-fuel per day, or 25 million litres per month.
Source: Lao News Agency