An Viet Phat proposes $372 mln biomass power project in central Vietnam

Private multi-sector group An Viet Phat, a pioneer in Vietnam’s clean energy field, has proposed to develop a VND8.5 trillion ($372 million) biomass power plant in Ha Tinh province.

The 112 MW project, with a lifespan of 50 years, will cover 30 ha in Ky Anh district.

In March 2021, An Viet Phat (AVP Group) started operating a forest product plant worth over $56 million in the central province’s Vung Ang Economic Zone.

AVP Group’s main business lines are wood pellets, paper, coal, wood, LED lights, transportation, agriculture and real estate.

Biomass availability in Vietnam is abundant, with a total annual supply of approximately 118 million tons. However, the current exploitation and usage of biomass sources is quite low, at 522.27 MW, making for only 0.14% of the country’s commercial electricity and 0.94% of installed capacity, according to the Institute of Energy Vietnam (iEVN).

The country has 10 biomass power plant projects, of which only three projects have their capacity recorded on the National Load Dispatch Centre, said Nguyen Anh Tuan, a representative of iEVN under the Ministry of Industry and Trade. The trio are the KCP-Phu Yen biomass power plant and the An Khe biomass power plant in Gia Lai province, and the Bourbon biomass power plant in Tay Ninh province,

The reasons for the underdevelopment of this energy source, Tuan added, are seasonal fuel costs, unreliable and unsustainable supply, huge initial capital investment, an unappealing incentive pricing mechanism, and a lack of experienced personnel for biofuel projects.

The Ministry of Industry and Trade is completing the draft national power development plan VIII, under which renewable energy, including biomass electricity, will hold a larger share in the national energy structure.

Biomass refers to biologically derived materials such as industrial plants and agro-forestry byproducts that can be utilised to generate electricity.

Biomass power is electricity generated from biomass materials. Biomass can be converted into electricity through a variety of methods such as direct combustion, thermolysis, gasification and anaerobic decomposition. Different methods will need different types of biomass.