Japan-headed power utility and retailer eREX Co. Ltd has announced that it has signed a Memorandum of Understanding (MoU) with Phu Yen Province of Vietnam to promote long-term and mutually beneficial cooperation in the biomass fuel business in Vietnam.
Signed on November 25, 2021, at the Vietnam Investment Conference hosted by the Japan External Trade Organization (JETRO) and the Ministry of Planning and Investment of Vietnam, the MoU with Phu Yen Provincecovers the development, procurement, processing, and transportation of biomass fuels, and biomass power plant project development.
With its mission of “creating the future with new ideas and energy” and its 2030 vision of “becoming a pioneer in the new era of electric power with renewable energy at its core”, eREX aims to realize decarbonized societies in Japan and overseas through renewable-energy-based businesses while pursuing economic rationality.
eREX says that it approaches energy cost reduction from various perspectives, making full use of its accumulated know-how in the biomass power generation business, fuel business, and others.
Rapid growth
In Vietnam, which is experiencing remarkable economic developments, demand for electric power is increasing at a rate of 10 percent per year in line with economic growth and urbanization, and there are concerns about electric power shortages.
Therefore, Vietnam is expanding the import of electric power from China and Laos and is promoting the development of renewable energy in which eREX is already involved.
Developing new sorghum as feedstock
This MoU is aimed at expanding businesses between the two countries, including the establishment of a cooperative relationship in agriculture and rural development for businesses in Phu Yen Province involving the development, procurement, processing, and transportation of new sorghum as biomass fuel.
New sorghum biomass fuel is characterized by its rapid absorption of carbon dioxide (CO2) due to its early growth, and its absorption and saving volumes are several times higher than other biomass fuels.
It can also be grown on marginal land due to its improved quality, therefore, there is no competition with food production. The new sorghum business also creates local employment.
eREX says that it will continue to proactively develop and provide various solutions such as biomass fuel business and biomass power generation business in deregulated power markets, utilizing its expertise as a “leading company in renewable energy.”
