en.Wedoany.com Reported - A new Danish-Vietnamese partnership has been finalized in Hanoi, aimed at accelerating the development of Vietnam's domestic biofuel industry and deepening the country's energy transition.
The agreement was signed at the Danish Embassy in Hanoi, witnessed by Danish Ambassador to Vietnam Nicolai Prytz, highlighting the growing cooperation between the two countries in sustainable energy and industrial innovation.
This memorandum of understanding brings together Danish biosolutions company Novonesis and Vietnamese producer Nhà Xanh Viet Nam (Vietnam Green Home Company), with plans to enhance the efficiency, yield, and competitiveness of domestic ethanol production using corn and cassava feedstocks.
As Vietnam expands the rollout of ethanol-blended fuel (E10), there is increasing focus on scaling up local production. This partnership aims to strengthen production capacity, reduce reliance on imported fossil fuels, and unlock greater value from domestic agricultural resources.
At the same time, the initiative's impact may extend beyond the energy sector, potentially boosting demand for cassava and corn grown by Vietnamese farmers and improving the utilization of agricultural output across the entire supply chain.
Under the memorandum of understanding, the two companies will explore ways to increase ethanol yields, lower production costs, and enhance overall competitiveness by applying Novonesis's expertise in industrial biofuel processes.
Commenting on the collaboration, Đỗ Văn Tuấn, Chairman of Nhà Xanh Viet Nam, stated that as Vietnam expands its use of biofuels, domestic production will play an increasingly important role in strengthening energy security and reducing dependence on fossil fuels. Through cooperation with international biosolutions expertise, the company combines its own production capabilities with Novonesis's experience in enzyme and yeast solutions, aiming to improve efficiency, enhance supply autonomy, and increase domestic ethanol supply to support Vietnam's biofuel transition.
Xiaofeng Ye, Vice President of Planetary Health Biosolutions for Asia Pacific at Novonesis, said that Vietnam has all the conditions to build a strong biofuel industry and reduce its dependence on fossil fuels. Through biosolutions, biofuel producers can achieve higher yields from the same feedstocks, lower energy consumption, and reduce production costs. A more diversified energy mix will not only strengthen Vietnam's energy security but also support a more resilient and competitive economy.
Danish Ambassador to Vietnam Nicolai Prytz stated that the agreement reflects the strength of Danish industrial expertise in supporting Vietnam's development priorities. By advancing domestic biofuel production and creating greater value from agricultural resources, this collaboration supports shared priorities such as energy security, resource efficiency, and sustainable growth.
The Danish Embassy in Hanoi stated that this collaboration reflects its broader mission to strengthen cooperation in energy, green growth, sustainable food systems, and innovation.
Industry data highlights the potential impact of the collaboration: biosolutions are estimated to have the potential to reduce approximately 4.3 billion tons of global CO₂ emissions by 2030, representing about 8% of current global emissions. Novonesis's biofuel technology alone reportedly saved 80 million tons of CO₂ equivalent in 2025, equivalent to removing approximately 30 million gasoline-powered cars from the roads.
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