Australia influences Viet Nam's bioenergy model in pig farming

Since 2016, the Australian Government has invested $9.4 million AUD through the Business Partnerships Platform (BPP) in Vietnam, focusing on climate change action, sustainable carbon markets, and inclusive livelihoods, especially for women and people with disabilities.

These cooperation projects were implemented through three thematic rounds: Green Recovery, Carbon Market, and Climate Change Adaptation. In the Green Recovery thematic round, the 'Bioenergy in Livestock Farms' project has supported pig farms across Vietnam in converting surplus biogas into affordable, renewable electricity since 2021.

According to Ms. Nguyen Thi Quynh Huong, Project Manager at the Netherlands Development Organisation (SNV), this initiative stands out for applying the ESC (Energy Service Company) model, which leases generators rather than sells them outright.

"The idea originated from the reality that, after more than 10 years of implementing the National Biogas Program, many farms invested in generators that were of low quality and quickly broke down, leading to a loss of trust. Under the ESC model, partners (such as E-GREEN and Chinh Phat) will invest in generators and install them at farms that already have waste treatment systems using biogas technology. The farm will not have to bear the initial capital investment to purchase the machine but will only pay for the electricity generated from the biogas. This helps farm owners mitigate financial risks while ensuring quality and reliable operation-maintenance services from the supplier," she shared.

Mr. Tong Xuan Chinh, Director of Chinh Phat Company, assessed that by collecting and converting biogas into electricity, farms can replace up to 60-70% of the electricity purchased from EVN. The price of biogas electricity is always lower than grid electricity during peak and average hours, helping to save approximately 30% of monthly electricity costs.

"From an environmental standpoint, this model delivers a compelling double impact. Biogas, primarily composed of methane (CH4) and CO2, was historically either simply flared or released directly into the atmosphere. The innovative use of this gas for power generation, especially by combustion within the generator's chamber at extremely high temperatures (ranging from 1800 to 2000 degrees Celsius), results in superior carbon decomposition compared to conventional flaring. This process, therefore, leads to a substantial reduction in greenhouse gas emissions.

In parallel, the initiative has also successfully developed a carbon credit component, which has been registered and certified under the rigorous Gold Standard. The project has completed all necessary documentation and received full approval, thus creating a potential revenue stream for the participating farms," he confirmed.

After three years of implementation, the project has proven its effectiveness and attracted significant interest from farms. To date,  the program has successfully installed 120 bio-power generators across 98 farms in 24 provinces. This ongoing operation processes over 3.2 million tonnes of animal manure annually and generates more than 16,800 MWh of clean, renewable electricity.

In addition to contributing to the environment and energy sectors, the BPP has also created over 500 jobs, including a new generation of biogas technicians and operational staff. The project has been awarded the Gold Standard Design Certification, marking it as the first biogas-based livestock carbon-credit initiative in Vietnam to deploy dedicated hardware for converting biogas into usable energy.

More importantly, the project also promotes cooperation between enterprises and universities, such as Hanoi University of Science and Technology, to improve technology, enhance voltage quality, and develop digital solutions to enable remote control of operations. Several enterprises are combining biogas with solar and wind power to build integrated renewable energy models, aiming to facilitate technology transfer and expand into markets such as Laos, Cambodia, and other Southeast Asian countries.

“The Biogas for Pig Farms project under the BPP program is one of the many ways Australia is supporting Vietnam’s transition toward green energy and a more sustainable agricultural sector,” shared Gillian Bird, Australia’s Ambassador to Vietnam. “We are delighted that this partnership is helping to reduce emissions and energy costs, while also creating new jobs and sources of income for farmers.”