Japan’s Erex to operate wood pellet plant in northern Vietnam next month

Japan's renewable energy firm Erex is conducting trial production at its wood pellet plant in Vietnam’s northern mountainous province of Tuyen Quang and will put it into official operation in February.

Erex representative director and president Honna Hitoshi, made the statement at a Wednesday meeting with Tuyen Quang authorities. He urged provincial authorities to help with input materials for the plant, such as wood, agricultural byproducts, forestry byproducts.

Hitoshi also called on Tuyen Quang authorities to further help with its waste-to-power plant, especially materials and licensing.

The future success of the power plant would help Erex expand the model to other provinces in the country, the executive added.

In reply, Tuyen Quang Chairman Nguyen Van Son said the province is set to give in-principle approval for the biomass power plant in March. Relevant provincial agencies will collaborate with Erex to ensure the stable supply of materials, he added.

On the same day, Ha Thi Nga, Party chief of Tuyen Quang, said the province will help with deployment of Erex projects. Those projects can elevate the province’s economic activities, especially the forestry sector, and improve citizens’ incomes and livelihoods, she noted.

In March 2024, Erex kicked off construction of a VND478.8 billion ($19.4 million) biomass fuel factory in Tuyen Quang. Covering 3.3 hectares, the factory is designed to produce 150,000 tons of biomass pellets and 150,000 tons of wood chips yearly, starting in 2025.

Biomass pellets are a key material for various sectors and industries including thermal power, industrial incineration and animal feed.

Erex has plans to generate over 1,000 MW of biomass power across 18 locations in Vietnam. The sites include Hoa Binh, Phu Tho, Lao Cai, Bac Kan, Yen Bai, and Tuyen Quang in the north; Thanh Hoa, Quang Binh, Ha Tinh, Binh Dinh, Phu Yen, and Dak Lak in the central region; and Binh Phuoc, Long An, An Giang, Binh Phuoc, Hau Giang, and Can Tho in the south, according to the company’s website.