Japan’s Erex plans 50-MW biomass power plant in central Vietnam

Japanese renewable energy firm Erex Co., Ltd. is assessing the feasibility of building a 50-MW biomass power plant in the central province of Ha Tinh.

The power plant will help reduce carbon emissions, ensure energy stability and sustainability, and provide jobs for local people, Erex representative director and president Honna Hitoshi said Monday in a meeting with provincial authorities.

The executive enumerated Ha Tinh’s advantages for the project and called on the provincial authorities to aid its progress.

Ha Tinh Chairman Vo Trong Hai responded that the province welcomed the project and relevant agencies will cooperate with the firm in implementing it.

The two sides also discussed Vietnam’s latest national power development plan (PDP VIII), suitable project locations, and other issues.

In July, Erex Co., Ltd. and local partner Sakura Green Energy JSC broke ground for a VND474.8 billion ($19.99 million) biomass power 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. The plant, the first of 14 Erex projects planned in Vietnam, is scheduled to begin operations in the third quarter of 2025.

In August, Erex Co., Ltd. announced plans 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, said that they planned to conduct a survey in September-October because the province’s biomass energy potential was currently unknown.

Last week, Erex Co., Ltd. said it was considering a 50-MW biomass power plant in the northern mountainous province of Bac Kan.

In a September 5 meeting with provincial authorities, Honna Hitoshi said Bac Kan possessed certain advantages and strengths for biomass development. He asked the authorities to support the project's development.

The under-construction Yen Bai facility is considered the first biomass power factory in Vietnam, Honna Hitoshi said. Meanwhile, in August 2022, construction at the Hau Giang Biomass Energy project began. This is set to become Vietnam's biggest rice husk-to-power plant, with a goal of entering operation in 2024.

Coal-to-power remains the nation’s largest power source. State utility Vietnam Electricity (EVN), the country’s biggest power producer and sole distributor, recorded a total output of 186.3 billion kWh in the first eight months of this year, up 2.7% year-on-year. The August figure was 25.6 billion kWh, up 7.2%.

In the eight-month period, coal fuelled power was the largest source with 88.08 billion kWh, or 47.3% of the total; followed by hydropower with 48.45 billion kWh, or 26%; renewable energy with 26.35 billion kWh, or 14.1%; gas-to-power with 19.26 billion kWh, or 10.3%; and oil-to-power with 1.23 billion kWh, or 0.7%. Imported power accounted for 1.4% of the total at 2.62 billion kWh.