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Licogi 16 takes stake in bioethanol plant

Vietnam’s Licogi 16 Joint Stock Co. has acquired a 22% stake in a bioethanol plant in the southern province of Binh Phuoc from PetroVietnam Oil Corp. (PV Oil), an affiliate of Vietnam Oil and Gas Group (PetroVietnam). As a result, Licogi 16 will contribute 123.2 billion dong (US$6.67 million) to the plant, the Xay dung newspaper reported. Earlier, the Binh Phuoc provincial government granted an investment license to PV Oil and Japan’s Itochu Corp. to set up a joint venture, Phuong Dong Bio-Fuel Ltd. Co., with a registered capital of 560 billion dong (US$30.33 million) to build the plant. Construction of the US$31-million ethanol plant is expected to start in March of this year. The plant is estimated to consume 230,000 tons of cassava as feedstock annually. (January 22, 2010)