Japan’s Erex eyes biomass power plant in northern Vietnam

Japanese renewable energy firm Erex Co., Ltd. plans to build a 50-MW biomass power plant in Vietnam’s northern mountainous province of Bac Kan.

The development follows Erex’s plans to conduct similar projects in the neighboring provinces of Yen Bai and Lao Cai in an effort to reduce carbon emissions and develop sustainable energy.

Initially, Erex is looking to build a wooden pellet factory to supply materials for the power plant said Honna Hitoshi, representative director & president of Erex, on Tuesday during a meeting with provincial authorities.

The executive also highlighted Bac Kan’s advantages and strengths for biomass development and called for the province’s support for the project's development.

In reply, Bac Kan Chairman Nguyen Dang Binh welcomed the project and asked relevant agencies to cooperate with the firm to process the project. Hoang Duy Chinh, chief of Bac Kan's Party Committee, affirmed biomass power development is a key focus for Vietnam, and that Bac Kan province is willing to facilitate investment in the sector.

During the meeting, the two sides discussed the project’s development, including administrative procedures, location, suitable trees to serve as materials, and others.

In August, Erex Co., Ltd. noted its plan to build a biomass power plant in the northern highlands province of Lao Cai. Director Tomoki Kakuta, who oversees the company’s Vietnamese market operations, announced the plan at a working session with provincial authorities. He urged Lao Cai province and the central government to facilitate the company’s investment, noting that it plans to conduct a survey in September-October as the biomass energy potential in the province is currently unknown.

In July, Erex Co., Ltd. and local partner Sakura Green Energy JSC broke ground for a VND474.8 billion ($19.99 million) biomass fuel plant in the mountainous province of Yen Bai. The three-hectare factory has a designed annual capacity of 150,000 tons of wood pellets and 305,000 tons of wood chip products a year. The plant, the first of 14 Erex projects planned in Vietnam, is scheduled to begin operations in the third quarter of 2025.

After three years of drafting and preparation, on May 15, 2023, Prime Minister Pham Minh Chinh issued Decision No. 500/QD-TTg, approving the national Power Development Plan for 2021-2030 with a vision to 2050 (PDP VIII). Of which, biomass power, with a potential of 7,000 MW, is set to account for 2,270 MW in 2030 and 6,015 MW in 2050. The figure includes 1,800 MW from waste-to-power.