In Vietnam, Power Engineering Consulting JSC, a company under the state-owned Vietnam Electricity (EVN), Son My Renewable Energy JSC, and Japan-headed energy utility eREX Co., Ltd, have jointly held a groundbreaking ceremony marking the start of construction for the 20 MWe Hau Giang Biomass Power Plant in Hau Giang Province.
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In Vietnam, the demand for electric power is increasing by 10 percent every year, and dependence on imported fossil fuel energy is expected to increase in the future with the domestic production of coal and gas declining.
On the other hand, Vietnam has declared to achieve carbon neutrality by 2050.
Under such circumstances, a 20 MWe capacity biomass power plant that will use locally sourced rice rusks as the main fuel is a welcome addition.
First-of-its-kind in Vietnam
The event also marks the construction start of the first biomass power plant outside of Japan for eREX, and the first commercial biomass power plant in Vietnam.
Based on the concept of pursuing both decarbonization and stable energy supply, eREX has been engaged in “large-scale fuel developments in Vietnam”, “coal-fired power transition”, and “promotion of power generation business in Vietnam and other Asian countries” as part of the key initiatives of its mid-term business plan, “New Innovations toward De-carbonization”.
Majority owned by eREX, the operation of the Hau Giang Biomass Power Plant is expected to increase the renewable energy ratio and lead to a stable supply of energy, making it an initiative to achieve both decarbonization and supply capacity.
It will also contribute to the creation of local employment and the development of the local economy. The plant is anticipated to enter commercial operations in December 2024 supplying electricity to the power grid under a Feed-in Tariff (FiT) scheme.
JCM co-financing
The project is being implemented with the cooperation of the Government of Vietnam and the Government of Japan and has been selected under the Financing Programme for the Joint Crediting Mechanism (JCM) Model Projects in FY2022” by the Ministry of the Environment, Japan, and the implementing organization, the Global Environment Centre Foundation (GEC).
Japan’s Ministry of the Environment has been implementing the “JCM Model Projects,” which provides financial support covering up to half of the initial investment costs.
The purpose of this model project is to financially support the implementation of projects which reduce greenhouse (GHG) emissions by utilizing leading decarbonizing technologies in developing countries, and in return, to acquire JCM credits for the achievement of Japan’s GHG emission reduction and the partner countries’ emission reduction target.
