Trung tâm Nghiên cứu và Phát triển Hệ thống Nông nghiệp

Centre for Agrarian Systems Research & Development

GBEP’s Economic Indicators in VIETNAM

For cassava-based ethanol and biogasCASRAD’s team:

Dao The Anh, Nguyen Ngoc Mai, Bui Quang Duan,

Nguyen Thi Dieu Linh

Ha noi, 15 November 2017

FAO Project

Building Capacity for enhancing bioenergy sustainability through the

use of GBEP indicators’(GCP/GLO/554/GER)

INDICATORS 17 – PRODUCTIVITY (Ethanol and Biogas)

(17.1) Productivity of bioenergy feedstocks by

feedstock or by farm/plantation

(17.2) Processing efficiencies by technology and

feedstock

(17.3) Amount of bioenergy end product by mass,

volume or energy content per hectare per year

(17.4) Production cost per unit of bioenergy

08/01/2018 2

Indicator 17.1: Productivity of fresh cassava

The cassava productivity is 19.8 ton/ha

Production over 10.9 million tons of fresh cassava, equivalent

4.5 million tons of dry cassava chips,

1 million tons of dried cassava chips imported from

Cambodia, the total output of dry chips in Vietnam is about 5.5

million tons.

In 2016, the export volume of cassava is 3.7 million tons (dry

cassava chips and cassava starch). China remained the main

export market, 87% market share

About 1.8 million tons (about 33%) of dry cassava chips are

consumed domestically mainly for processing animal feeds.

17.2. Processing efficiencies by technology and

feedstock (cassava - ethanol)

The starch content of fresh cassava is 25-35%, so 1 kg of dry

cassava chips could be produced from 2.3 - 2.4 kg of fresh cassava.

Ethanol production technology: 2.5 tons of dry chips for produce

1000 l of ethanol.

1 liter of ethanol = 21.1 MJ and 2.5 tons of dried cassava chips can

produce 1000 l of ethanol = 21100 MJ.

The processing efficiency of ethanol is 8440 MJ/ton of dried

cassava chips (equal to 3.52 MJ/ton of fresh cassava).

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17.3 Energy amount of bioenergy ethanol

Average yield of fresh cassava 19.18 tons / ha, equal to

7.99 tons/ha of dried cassava chips (2,4 kg of fresh

cassava = 1 kg of dried cassava chips)

2.5 tons of dried cassava chips can produce 1000 l of

ethanol = 21100 MJ.

7.99 tons/ha of dried cassava chips can produce an

amount of bioenergy end product of 67450 MJ.

And 1 hectare of cassava can produce an energy

amount 67450 MJ/ha per year.

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17.4. Production cost per unit of bioenergy

The cost of dried cassava chips accounts for 78% of ethanol production

cost.

The price of dried cassava chips is 180 USD/ton (FOB price in Quy Nhon

on 5/5/2017), and ethanol production cost is about 576.92 USD/1000 l of

ethanol (equal to 0,576 USD/l).

The production cost per unit of bioenergy is 0,027 USD/MJ.

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17.1. Productivity of biogas feedstocks (tons/year)

At industrial level (Biogas from

cassava starch production)

All country, having 102

cassava starch factories,

average capacity is 36,750

tons of cassava starch/plant/

year

Productivity 19.61 m3

wastewater/1 ton of starch

Biogas at household & farm

levels

All country, having

27,750 millions of pig.

One pig 50 kg produce 2.6

kg fresh manure/day (5.2%

of pig weight) or 0.949 ton

fresh manure/year (SNV,

2011)

Total fresh manure is 84

millions of ton/year.

INDICATORS 17 - BIOGAS

17.2.Processing efficiencies by technology and

feedstock for Biogas

a. At household & farm levels

Processing efficiency of biogas is 1.165 MJ / kg

of pig manure on a wet base

b. At industrial scale (Biogas from cassava

starch production)

Processing efficiency of biogas is 43.62 MJ / m3

of wastewater

17.3. Amount of bioenergy end product by biogas

Type QuantityNumber of Plants

(90% in use)

Biogas Produced in

GJ/plant/y

Total biogas

production (GJ/y)

SBP (10 m3) 450,000 405,000 24.00 9,720,000.0

MBP 500 m3 14,370 12,933 1,286.85 16,642,880.2

LBP 2000 m3 1,000 900 5,147.41 4,632,673.5

Content Value Unit

Total wastewater volume 720,750 m3/plant/year

Processing efficiency of biogas 43.62 MJ/ m3 of wastewater

Biogas output recovered for use 31,439,115 MJ/plant/year

Number of cassava starch factories in

the country102 plant

Total biogas production taking back

for using in the country3,206,789,730 MJ/year

Table 2: Biogas at household /farm levels

Table 3: At industrial level (Biogas from cassava starch production)

17.4. Production cost per unit of bioenergy

Biogas at household & farm levels

Production cost per unit of bioenergy household level is

0.015627 USD/MJ

Production cost per unit of bioenergy at farm level is

0.015835 USD/MJ

The labor costs is 60 % of the total biogas production costs (at

both levels), and the depreciation costs of the plant is 22-26%.

Biogas at industrial scale from cassava starch production

Production costs per unit of bioenergy of cassava starch

processing factories is 0.0027395 USD/MJ

At the industrial level, the depreciation cost and the cost of

electricity used to operate the biogas plant are 72.5 – 86.6%

17.4. Production cost per unit of bioenergy

No. Fuel Unit

Conversion

coefficient of

energy unit (MJ)

Fuel price in

2016

(VND / kg)

Fuel price in

2016

(USD / kg)

Production

cost per

energy unit

(USD/MJ)

1 LPG Kg 45.638 21,833 0.966 0.021168

2 DO oil Kg 42.707 12,380 0.547 0.012827

3 Wood Kg 15.6 500 0.022 0.001482

4 Rice husk Kg 11.72 1,650 0.073 0.006229

5 Sawdust firewood Kg 17.58 2,300 0.102 0.005789

6Biogas at household

level0.015627

7 Biogas at farm level 0.015835

8Biogas at cassava starch

factory0.002739

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Table 4: Production cost per energy unit of energy

sources

Production cost per energy unit of fuel is arranged as follows: Biogas from

cassava starch factory < Sawdust firewood < Rice husk < DO oil < Biogas at

household level < Biogas at farm level < LPG < Wood.

INDICATORS 19 – GROSS VALUE ADDED

(Ethanol and Biogas)

19.1 Gross value added per unit of

bioenergy produced

19.2 Percentage of gross domestic

product

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19.1. Gross value added per unit of bioenergy produced

The cost of ethanol production is $ 0.576 per liter (excluding

ethanol distribution costs) and the cost of ethanol production is $

0.68 per liter (including ethanol distribution costs).

The average selling price of E5 RON 92 gasoline is 17,025

VND/liter for 2017 (equal to 0,75 USD/liter).

The cost of ethanol production is $ 0.68 per liter. Thus, the

added value is 0.07 USD / liter.

Gross value added per unit of bioenergy produced is

0.0033 USD/ MJ

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INDICATOR 19 - GROSS VALUE ADDED ETHANOL

19.2. Percentage of gross domestic product

Total GDP (PPP) of Vietnam in 2016 is $ 595 billion.

Total national consumption of ethanol was 29,500 m3, thus 29.5 Ml. The

total added value is 0.07 USD/l. The ethanol production industry's GDP is

estimated at $ 2.065 million per year.

The contribution to GDP of ethanol production industry in 2016 was

0.000347%.

In 2018, E5 Mogas 92 will be used for replacing conventional Mogas 92.

The ethanol demand would increase up to 267.85 M liters.

The ethanol production industry's GDP would increase up to $ 18.75 million

per year.

The contribution to GDP of ethanol production industry in 2018 will be

0.00315%.

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19.1. Gross value added per unit of bioenergy BIOGAS

+ Biogas at household level

A biogas plant 10.49 m3 will generate value added from saving

fossil fuel, fertilizers, fish feed of USD 79.05

The value added per unit of bioenergy is USD 0.00116 /MJ

The value added in the whole country is estimated equal to

USD 11,296,450.0

+ At industrial scale (Biogas from cassava starch production)

The investment in wastewater treatment system to recover biogas

of the cassava starch factory produce a value added of USD 0.010149

per MJ

With 102 cassava starch factories, the value added of the country

reached USD 32,545,709.0

19.2. Total added value and Percentage of gross

domestic product - BIOGAS

• Total added value from biogas: 43.84 million

USD

• Viet Nam GDP in 2016 is 595 billions USD

• Percentage of Gross domestic product is

0.0074%.

INDICATOR 21 - TRAINING AND REQUALIFICATION OF THE

WORKFORCE (only for Biogas)

(21.1) Share of trained workers in the

bioenergy sector out of total bioenergy

workforce

(21.2) share of re-qualified workers out of

the total number of jobs lost in the

bioenergy sector (no data)

• In the total of 450 000 biogas digesters, 55 % supported

by projects

• In the project, 94% of households using biogas are trained

& 83% household were guided at the biogas plant (BUS,

2014)

• The SNV project training (2010):

• 1020 technicians and 1607 masons, 220 team leaders.

• 2,000,000 workdays and 1,800 mason works.

• 100% of households are satisfied with the technology of

the building workers (SNV, 2010).

Sub Indicator 21.1: Share of trained workers in the

bioenergy sector out of total bioenergy workforce

INDICATOR 20: CHANGE IN CONSUMPTION OF FOSSIL

FUELS AND TRADITIONAL USE OF BIOMASS for Biogas

20.1:

20.1a: Substitution of fossil fuels with domestic bioenergy

measured by energy content,

20.1b: Annual savings of convertible currency from

reduced purchases of fossil fuels.

20.2: Substitution of traditional use of biomass with modern

domestic bioenergy measured by energy content.

Indicator 20.1a: Energy savings through the use of biogas instead of

fossil fuels

Type GJ/y

Efossilsub_i livestock production 7,076,416.9

Efossilsub_i cassava processing 5,354,793.0

Total 12,431,209.9

Indicator 20.1b Changing the use

of fossil fuels by biofuels saving

in 2015 = 44.22 million USD

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Indicator 20.2

Substitution of traditional use of biomass

with modern domestic bioenergy

measured by energy content

Type Total bioenergy

(GJ)

Wood and residues

(ton)

Livestock 7,317,932.9 457,371

Cassava starch

processing plants 5,354,793 724,674

Total 12,672,725.9 1,182,045

Conclusion and Recommendation(Indicators 17 and 19 – ethanol)

Indicator 17

To reduce the cost of ethanol production, the factories need to apply

bioenergy processing technology of developed countries (such as

USA, India…).

It is necessary to study to improve the cassava variety and invest to

increase the productivity of cassava to reduce the cost of dried

cassava chips.

Indicator 19

To increase the added value per unit of bioenergy, it is necessary to

find ways to reduce the cost of ethanol production (as reduce the

cost of inputs and improve the technology to increase the efficiency

of bioenergy production).

In order to increase the GDP contribution of the bioenergy industry,

there should be a policy to increase bioenergy consumption.

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Conclusion and Recommendation(Indicators 17 and 19 – biogas)

Indicators 17

Using biogas to replace fossil fuels is necessary and effective. However, the

cost of building biogas digester is still high, the payback period is long and

biogas surplus at farm level is constraint.

Therefore, the government should have policies to help farmers, livestock

farms and cassava starch factories to access capital to build biogas digester.

Indicators 19

Vietnam has potential for biogas, but main constraint is distribution of gas.

Waste water and digestive derived from biogas production are not used

thoroughly.

In order to increase the GDP contribution of the bio-energy industry,

Vietnam should have a policy to exploit the potential of biogas at farms level

to produce electricity.

The government should have propaganda policies about effective use of

wastewater, biogas waste.

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Conclusion and Recommendation

(Indicators 20 and 21 – biogas)

Need to build the official statistic on biogas

digesters in livestock and on labor force working

in biogas

Need assessment of labor forces training for biogas

and develop public extension for biogas training

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Tel: 043 3650793 - Fax: 043 3650862 - Email: hethongnn@gmail.com - Web: www.casrad.org.vn

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