The central province of Ha Tinh has urged the Korea International Cooperation Agency (Koica) to fund a $17.4 million project on developing biomass energy for green and sustainable growth.
The project, which seeks $14 million in non-refundable aid from Koica, will take place in the western mountainous districts and nearby areas of Ha Tinh, which have large forest coverage for material cultivation, from 2024-2029.
It aims to develop green energy and raise the incomes and living conditions of citizens from forestry production and agri-forestry by-products.
The project was approved by the Ministry of Planning and Investment, and Ha Tinh province has urged Koica to issue a letter of acceptance for the project this year. In reply, Koica proposed local authorities help a South Korean delegation survey sites for the project.
So far, Ha Tinh has granted investment certificates to seven direct investment projects from South Korea, with total registered capital of $157.5 million. Of which, four are operating with 2,700 workers, and three are under implementation.
Investment in biomass energy remains modest despite Vietnam’s high potential, particularly in agricultural hubs. Per the amended Power Development Plan VII (PDP VII), the output of biomass energy will reach 3,000 megawatts by 2030.
The Ministry of Agriculture and Rural Development said biomass resources in Vietnam are varied and the annual output can reach 160 million tons of rice husks, rice straw, bagasse, and livestock waste, among others.
Vice chairman of the Vietnam Energy Association Nguyen Van Vy suggested a rate of 8.47 U.S. cents per kWh for all biomass power plants, which would prompt factories to find materials for whole-year operation, instead of seasonal production per sugarcane production of only 3-6 months a year.
Private multi-sector group An Viet Phat, a pioneer in Vietnam’s clean energy field, has proposed a VND8.5 trillion ($372 million) biomass power plant in Ha Tinh province. The 112 MW project will cover 30 ha in Ky Anh district.
Tra Vinh authorities have approved in principle a 25-megawatt biomass power plant costing VND1.066 trillion ($43 million) in the Mekong Delta province for commercial operation in the first quarter of 2025. The power plant is set to commence construction in 2023.
Hau Giang Bioenergy JSC broke ground for its 20-megawatt husk-to-power plant with an investment of VND875 billion ($37.2 million) in the Mekong Delta province of Hau Giang last December. The plant is scheduled for operation in the fourth quarter of 2024, annually providing 125 gigawatts-hour of electricity and earning a revenue of VND200 billion ($8.49 million) per year.