Central province permits Korean firm to delay energy pellet project

Quang Binh province has permitted Dohwa Resource Development Limited Company, under South Korea’s Dohwa Engineering, to delay its energy pellet factory by one year to December 31.

At a meeting with provincial authorities late last week, Co-CEO at Dohwa Engineering Seung-Woo Park clarified it had missed the deadline of December 31, 2022 due to the drop in global demand which led to difficulties in acquiring finances, the appreciation of the U.S. dollar affecting construction costs specified under a contractor signed with an EPC contractor, and unfavorable weather conditions.

Dohwa Resource Development was given an investment certificate for the VND240 billion ($10.22 million) project in April 2016, covering 30,000 square meters in the Hon La Seaport Industrial Park. Previously, Quang Binh province had extended the timeline for the project thrice.

The project’s output is 50,000 tons a year in the first phase and 100,000 tons in the second phase.

The energy pellet factory is part of Dohwa’s energy complex in the central province, which also features the Dohwa Le Thuy solar power plant. The VND1,037 billion ($44.17 million) plant entered official operation in January 2021.

The factory’s output reached 61.5 million MWh in 2021, reaping a revenue of VND111 billion ($4.72 million). The 2022 figures were 61.2 million MWh and VND109 billion ($4.64 million). The 2023 target is output of 60 million MWh.