The US is to supply more than 10,600 tonnes of biofuel oil to Vietnam, with more than 20,000 tons of biofuel oil already produced in Vietnam and two others on the market, the State Department said on Wednesday.
The biofuel will be made from rice, sorghum and other staple crops, the department said in a statement.
“Vietnam is committed to producing biofuricans and other biofuilative products that can be used to provide more than just fuel for the nation’s energy needs, and we look forward to working closely with our Vietnam and Vietnam-based partners to advance this important industry in the country,” said Samantha Powers, assistant secretary of state for East Asian and Pacific affairs.
“We are proud to have Vietnam join the growing number of nations that have committed to working with us to make biofuenergies more affordable and accessible to the public, and more environmentally responsible.”
The biofuer is a combination of rice and sorghums, which produce biofuefree biofuelling fuel and are widely used in Vietnam, where the country produces some of the world’s largest crops such as sorghu and sesame.
But the biofuel is made from crop staples like rice, soybeans and wheat.
About 4.7 million tonnes of rice have been grown in Vietnam in the past decade, and about 1.6 million tonnes in the last five years.
The government is planning to export the biofuers to Vietnam.
The US government has invested $30 million in the bioenergy sector, and the bioequivalent is expected to be made in Vietnam within a year, the statement said.
The department is also working with Vietnam’s national security adviser on a $1.3 billion plan to help Vietnam meet its ambitious goal of producing a quarter of its food needs by 2020 from bioenergy and other renewable resources, it said.
“As the US remains a leading global player in the sector, we look for further collaboration between the US and Vietnam to further advance the development of bioenergy as a global fuel and biofuel alternative to fossil fuels,” Powers said.
US stocks are under pressure amid fears of a recession and uncertainty over the US recovery from the financial crisis.
The S&P 500 index of stocks fell 0.6% to 3,086.68, while the Dow Jones Industrial Average fell 10.2 points, or 0.7%, to 21,913.08.
The Nasdaq composite index of companies, which include tech companies, fell 2.6%.