The Hau Giang Biomass Energy project, set to become Vietnam's biggest rice husk-to-power plant, is slated to start commercial operation in 2024, according to Power Engineering Consulting JSC 2.
The firm, listed on the Ho Chi Minh City Stock Exchange (HoSE) as TV2, is committed to fulfilling the target while signing the engineering, procurement, and construction (EPC) contract and an operation and maintenance (O&M) term sheet with Hau Giang Bioenergy JSC (HBE) for the facility on Tuesday.
The signing is a major milestone in the plant construction, also marking the first project for TV2 to join as EPC contractor.
The 10-hectare, 20-megawatt plant, invested by HBE, is located in Long My town of Hau Giang province. The project is expected to promote a circular economic model by using rice husks as fuel and biomass power development in Vietnam, as well as increase farmers' incomes.
The Mekong Delta is Vietnam's rice bowl and the province is home to some 190,000 hectares of rice, providing about 1.2 million tons of rice a year, according to provincial data. Vietnam's total rice husks are estimated at about 11 million tons each year.