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 on Thursday.
The 11-hectare Hau Giang Biomass Power Plant is scheduled for completion and 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.
The project would annually use about 110,000 tons of husk from rice in the Mekong Delta, Vietnam's rice bowl.
Hau Giang Bioenergy CEO Truong Ngoc Thuy Trang said the factory is the first of its kind in Vietnam and the largest one in terms of using husk. She added her firm would also purchase wood chips and coconut byproducts to ensure operations.
Per the amended Power Development Plan VII (PDP VII), the output of biomass energy in Vietnam is set to reach 3,000 MW by 2030. Meanwhile, 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, livestock waste, and others.