EREX, a large-scale new electric power company in Japan, will develop biomass power generation business in Vietnam. It plans to cooperate with the Vietnam Electric Power Group (EVN) and others to start a power station with an output of 20,000 kilowatts in 2024. It is also considering further expansion of the business. This is the first time EREX has built a biomass power station overseas. It is also envisaged to make full use of a system in which Japan and Vietnam share the amount of greenhouse gas reduction.

Construction of the new power station will start in Hou Giang province in southern Vietnam in 2022. The fuel will use locally grown rice husks. The annual power generation is assumed to be about 120 million kilowatt-hours. The generated electricity will be sold to Vietnam Power Group under Vietnam's fixed price acquisition system (FIT). EREX operates 5 biomass power plants in Japan and will promote its business experience overseas. EREX has been committed to the independent procurement of biofuels. Starting from June 2021, it has begun to experiment with improved varieties of sorghum in Vietnam. It also signed a memorandum on biological business with PECC2, a power consulting company under the Vietnam Power Group.

In order to build a power station, all parties will make capital contributions to a special purpose company (SPC). The investment ratio is 51% for EREX, 10% for PECC2, and 39% for local fuel supply companies in Vietnam.

Keywords: new energy, overseas engineering, international engineering construction, foreign engineering construction news

Vietnam's economy continues to develop, and electricity demand is growing at a rate of 10% per year. The Vietnamese government is worried that there will be a power shortage. Therefore, while Vietnam is expanding its electricity imports from China and Laos, it is also advancing the development of renewable energy. The "8th National Electric Power Development Basic Plan" recently formulated by the Vietnamese government will include the expansion of the introduction of biomass power generation related content. EREX is also considering the construction of additional 4 to 5 power stations.Editor/XuNing