Chairman of Yen Bai goes to Japan to award decision on investment in biomass power plant

On May 8, in Tokyo Capital (Japan), Chairman of Yen Bai Provincial People's Committee Tran Huy Tuan awarded the decision approving investment policy and investor for the Yen Bai 1 Biomass Power Plant Project at the Bac Van Yen industrial cluster (Van Yen district, Yen Bai province) to Mr. Honna Hitoshi, President and General Director of Erex Group.

Mr. Honna Hitoshi, Chairman of Erex Group, thanked Yen Bai Province for supporting the business in implementing the Yen Bai 1 biomass power plant project. The biomass power plant will be built on an area of about 10 hectares, with a total investment capital of USD 100–120 million.

This project also received support from the Japanese Ministry of the Environment and received a decision to grant financial support under the Joint Crediting Mechanism (JCM) for the project's equipment items. JCM is the mechanism proposed by the Government of Japan for developing countries to promote the transfer and dissemination of low-carbon emission technologies towards green growth in the host country and support the implementation of Japan's international commitment to reduce greenhouse gas emissions.

It is expected that the plant will begin operating in early 2027, generating electricity with a capacity of 50 MW, including about 45 MW of stable renewable power sources for EVN's power transmission system. This power plant is estimated to use about 500,000 tons/year of wood scraps and by-products as fuel.

Previously, in July 2023, the Yen Bai Provincial People's Committee coordinated with Japan's Erex Joint Stock Company to organize the groundbreaking ceremony of the Erex Sakura Yen Bai Biomass Fuel Plant Project. The Erex Sakura Yen Bai biomass fuel plant is invested on a scale of 3 hectares, with the goal of producing biomass pellets and wood chips. The plant has a designed capacity of producing 150,000 tons of biomass pellets/year and 150,000 tons of wood chips/year; trading 350,000 tons of wood chip products/year.

The Yen Bai 1 Biomass Power Plant Project will be the second commercial biomass power plant in Vietnam and is part of Erex's global biomass power development plan.

According to Erex, the Group is building the first commercial biomass power plant in Vietnam with a capacity of 20 MW in Hau Giang province, expected to come into operation at the end of 2024. This is also a project that receives financial support under the JCM mechanism from the Japanese Ministry of the Environment.