BCG Energy of private Vietnamese conglomerate Bamboo Capital group is set to enter the waste-to-power sector with the acquisition of Ho Chi Minh City-based waste treatment firm Tam Sinh Nghia Investment Development JSC.
BCG Energy and Tam Sinh Nghia have signed an in-principle contract on share purchase, making the latter a member of Bamboo Capital ecosystem.
After the acquisition, BCG Energy will build two Tam Sinh Nghia waste-to-power plants in HCMC and the neighboring province of Long An.
The move highlights BCG Energy’s status as a major energy firm in the country with a flexible approach to market development.
At the moment, Tam Sinh Nghia processes, classifies and incinerates waste in HCMC and the southern provinces of Long An and Kien Giang.
BCG Energy’s construction of waste-to-power factories with modern technology will advance the urban waste treatment process and boost environmental protection.
In 2024-2025, BCG Energy will build its first waste-to-power plant in HCMC, within the Tay Bac solid waste treatment complex in Cu Chi district.
The 20-hectare factory, with an investment of VND5,000 billion ($205.4 million), will be able to burn 2,000 tons of waste daily to generate 40 MW. In subsequent phases, the factory can expand its daily capacity to 5,200 tons for generating 130 MW.
HCMC, currently home to 13 million people, produces 9,000 tons of waste a day. While municipal authorities are speeding up waste processing projects, Bamboo Capital’s entry to the waste-to-power sector is expected to help relieve the city’s waste treatment pressures while supplying much-needed electricity.
In Long An province, BCG Energy will invest VND1,586 billion ($65.1 million) in a waste-to-power plant in Thanh Hoa district with a daily capacity of 500 tons of waste and electricity generation of 10 MW.
In Kien Giang province, Tam Sinh Nghia is operating a plant in Hon Dat district that can treat 200 tons of waste a day. BCG Energy plans to enlarge the VND200 billion ($8.21 million) plant into a waste-to-power facility.
In April 2022, the Prime Minister issued a decision on the National Environmental Protection Strategy to 2030 with a vision until 2050, focusing on handling solid and hazardous waste.
It envisions a network of solid waste treatment facilities within provinces and regions with appropriate technology for each region. It also seeks to promote the application of modern and environmentally friendly technologies towards limiting direct burial of household solid waste.
A major goal is to reduce the rate of urban landfill to 30% in 2025 and 10% in 2030. For HCMC, the ratio of waste-to-power processing is set to reach 80% in 2025 and 100% in 2030.
Vietnam currently has only three waste-to-power factories – in Can Tho city, Hanoi, and Bac Ninh province. Other projects are under negotiation or construction.