Novonesis and Nhà Xanh Viet Nam partner to boost domestic bioethanol production, supporting Viet Nam's E10 rollout and sustainable energy transition.
A landmark agreement has been formalized between Danish biosolutions leader Novonesis and Vietnamese biofuel producer Nhà Xanh Viet Nam, signaling a significant milestone in bilateral cooperation between Denmark and Viet Nam on sustainable energy. The Memorandum of Understanding (MoU) was signed at the Embassy of Denmark in Hanoi in the presence of Danish Ambassador Nicolai Prytz, whose witness to the occasion underscored the diplomatic and strategic weight of the collaboration. This partnership unites world-class Danish scientific expertise in biological solutions with Viet Nam's growing domestic production capabilities, with the shared goal of making biofuel production more efficient, more affordable, and more competitive on a national scale.
Viet Nam is currently undergoing a significant energy transition, with ethanol-blended fuels — particularly the E10 blend — playing a central role in the country's push to diversify its energy sources and reduce dependence on imported fossil fuels. Against this backdrop, strengthening the efficiency and economic viability of local biofuel production has emerged as a strategic priority. Ramping up domestic production capacity not only enhances energy security and national resilience but also unlocks greater value from the country's abundant agricultural resources, particularly corn and cassava, which serve as primary feedstocks in ethanol manufacturing.
Through the MoU, Novonesis and Nhà Xanh Viet Nam will jointly explore avenues to improve ethanol yields, cut down production costs, and sharpen the overall competitiveness of domestically produced biofuels. Novonesis brings to the table deep technical knowledge in enzyme and yeast applications specifically tailored for corn and cassava-based ethanol production, while Nhà Xanh Viet Nam contributes established production infrastructure and hands-on experience in applying these biological tools throughout the manufacturing process.
The benefits of this collaboration are expected to ripple beyond the energy sector. As biofuel demand grows domestically, so too does the market for locally sourced agricultural raw materials. Vietnamese farmers cultivating cassava and corn stand to benefit from stronger and more consistent market demand, while the broader economy gains from more efficient utilization of home-grown agricultural resources.
Do Van Tuan, Chairman of Nhà Xanh Viet Nam, emphasized that domestic production would play an increasingly vital role in Viet Nam's energy future, and expressed confidence that the partnership would improve efficiency, bolster supply autonomy, and expand domestic ethanol availability in support of the country's biofuel goals.
Xiaofeng Ye, Vice President of Planetary Health Biosolutions APAC at Novonesis, echoed this optimism, noting that biosolutions empower producers to generate higher yields from the same feedstock while consuming less energy and reducing overall costs — ultimately contributing to a more diversified, resilient, and competitive national energy landscape.
Ambassador Prytz highlighted that this partnership reflects shared priorities around energy security, resource efficiency, and sustainable growth — values at the core of Denmark's cooperative agenda with Viet Nam.
On a global scale, biosolutions hold the potential to eliminate approximately 4,300 million tonnes of CO2 by 2030. Novonesis' biofuel solutions alone contributed to saving 80 million tonnes of CO2 equivalent in 2025 — the equivalent of removing around 30 million gasoline-powered vehicles from roads worldwide.
Price Impact on ChemAnalyst-Tracked Commodities
The Novonesis–Nhà Xanh partnership is poised to create notable ripple effects across several ChemAnalyst-tracked commodities. Viet Nam currently faces a significant ethanol supply shortfall, necessitating imports of approximately 75,000 cubic meters monthly — potentially costing around USD 1 billion annually. As this partnership scales up domestic production efficiency, ethanol prices in Southeast Asia could face mild downward pressure over the medium term.
Cassava and corn — primary feedstocks — are likely to see price appreciation due to stronger industrial demand. Rising upstream costs for corn and cassava feedstocks have already been pushing distillers' production costs higher in the region. Increased biofuel competition for these crops will further tighten agricultural supply.
Additionally, sorbitol, which is heavily reliant on starch-based feedstocks like corn and cassava, remains highly sensitive to biofuel competition — meaning its prices could face upward pressure as feedstock diversion intensifies across Southeast Asia.
