Erex starts building two 50MW biomass-fired plants in northern Vietnam
Japanese renewable energy developer Erex has started building two 50MW biomass-fired power plants in Vietnam, the company said on 10 October.
Erex started construction on 4 October in the Yen Bai and Tuyen Quang provinces of northern Vietnam. Each plant will have 50MW of generation capacity and burn around 500,000 t/yr of wood residue secured in northern Vietnam. Both plants are scheduled to come on line in mid-2027.
Both projects are backed by Japan’s subsidy scheme that supports potential projects that could contribute to its Joint Crediting Mechanism (JCM) to cut greenhouse gas emissions. The construction cost of each plant is estimated at $100mn-120mn, Erex said.
Erex plans to start operations at the 20MW Hau Giang plant in December, which is its first biomass-fired power plant in Vietnam. The company aims to build up to 19 biomass-fired power plants and 20 wood pellet factories in Vietnam by mid-2030s.
The company also runs biomass projects in Cambodia, aiming to construct up to five power plants. The company’s profits from Vietnam and Cambodia are expected to grow rapidly and account for more than 70pc of its whole profits around 2030, the company said.
Source: https://www.argusmedia.com/en/news-and-insights/latest-market-news/2617196-erex-starts-building-two-biomass-plants-in-vietnam
