erex’s projects selected for Financing Programme for JCM Model Projects in FY2023
~50MW Biomass Power Generation Projects in Yen Bai and Tuyen Quang Provinces, Vietnam~

April 2nd, 2024

erex Co., Ltd.

erex’s projects selected for Financing Programme for JCM Model Projects in FY2023
-50MW Biomass Power Generation Projects in Yen Bai and Tuyen Quang Provinces, Vietnam-

 

erex Co., Ltd. (headquarters: Chuo-Ward, Tokyo, hereinafter the “Company”) is pleased to announce that on March 22, 2024, the Company’s 50MW biomass power generation project in Yen Bai Province and 50MW biomass power generation project in Tuyen Quang Province, Vietnam have been selected for Financing Programme for Joint Crediting Mechanism (JCM)　Model Projects in FY2023 (*1).
The following two projects have been selected
Country and Project Name:
Vietnam / 50MW Biomass Power Project in Yen Bai Province
Vietnam / 50MW Biomass Power Project in Tuyen Quang Province
Representative Company Name:
erex Co., Ltd.
Amount of Financial support:
Not disclosed

 

In Vietnam, due to the rapid increase of demand for electric power at an annual rate of about 10%, the country has turned into a coal importing country to secure the fuel for power generation. Under this situation, the Company believes that it is of great significance to utilize unused wood residues in the country and to enhance the availability of power supply.
Candidate sites for biomass power generation have been selected in Vietnam’s 8th National Power Development Plan (PDP8), and among these, the Company is prioritizing its efforts in biomass power generation projects in Yen Bai and Tuyen Quang Provinces.

 

Candidate Sites for PDP8 Newly Constructed Biomass Power Plants in Vietnam

 

Business Company Name erex Yen Bai Biomass Power Co.,Ltd.
Power Plant Name Yen Bai-1 Biomass Power Plant
Planned Construction Site Yen Bai Province, the Socialist Republic of Vietnam
Investor Company (Plan) erex Co., Ltd. 100％
Power Sales Unit Price 8.47US cent/kWh (Under the FIT System in Vietnam)
Power Generation Output 50MW
Fuel Woody Residue (Approximately 500,000 tons/year)
Business Company Name erex Tuyen Quang Biomass Power Co.,Ltd.
Power Plant Name Tuyen Quang Biomass Power Plant
Planned Construction Site Tuyen Quang Province, the Socialist Republic of Vietnam
Investor Company (Plan) erex Co., Ltd. 100％
Power Sales Unit Price 8.47US cent/kWh (Under the FIT System in Vietnam)
Power Generation Output 50MW
Fuel Woody Residue (Approximately 500,000 tons/year)

 

With its 2030 vision “To become a pioneer in the new era of electric power with renewable energy at its core”, the Company is growing its business based on renewable energy in Japan. In addition, as one of the priority initiatives of the mid-term business plan to “generate new innovations toward decarbonization” with a focus on both decarbonization and a stable supply of energy, the Company is promoting large-scale fuel development and biomass power generation projects in Vietnam.
The Company will continue to contribute to the prevention of global warming and the realization of a decarbonized society by actively promoting businesses that utilize renewable energy both domestically and internationally, with a focus on biomass business.
Future Outlook
The impact of this project on the Company’s financial results for the current fiscal year (ending March 2024) and next fiscal year (ending March 2025) will be minor.
*1: The Ministry of the Environment, Japan has been implementing the “JCM Model Projects,” which provides financial supports covering up to half of the initial investment costs. The purpose of this model projects is to financially support the implementation of projects which reduce GHG emissions by utilizing leading decarbonizing technologies in developing countries, and in return, to acquire JCM credits for achievement of Japan’s GHG emission reduction and the partner countries’ emission reduction target. These projects are being implemented with the cooperation of the Vietnamese and Japanese governments.