Notice of Groundbreaking Ceremony for Hau Giang Biomass Power Plant, the 1st Overseas Biomass Power Generation Project

erex Co., Ltd.

erex Co., Ltd. (hereinafter referred to as “the Company”), as announced in the “Notice of Investment in Biomass Power Generation Business in Vietnam” dated October 1, 2021, has been promoting the development of a power generation project in Hau Giang Province, Vietnam, together with Power Engineering Consulting Joint Stock Company 2 (hereinafter referred to as “PECC2”), that is a company under the Vietnam Electricity (hereinafter referred to as “EVN”), a state-owned company in the Socialist Republic of Vietnam (“Vietnam”), Son My Renewable Energy Joint Stock Company (hereinafter referred to as “Son My”), that is a renewable energy power producer in Vietnam, and others.

The Company is pleased to announce that a groundbreaking ceremony was held today at the planned construction site as follows. This project is the Company’s first biomass power plant outside of Japan and the first commercial biomass power plant in Vietnam.

Note

Based on the concept of pursuing both de-carbonization and stable energy supply, the Company has been engaged in “large-scale fuel developments in Vietnam”, “coal-fired power transition”, and “promotion of power generation business in Vietnam and other Asian countries” as part of the key initiatives of its mid-term business plan, “New Innovations toward De-carbonization”.

In Vietnam, where economic growth is remarkable, the demand for electric power is increasing by 10% every year, and dependence on imported fossil fuel energy is expected to increase in the future with the domestic production of coal and gas declining. On the other hand, Vietnam has declared to achieve carbon neutrality by 2050.

Under such circumstances, this power plant is a biomass power plant with a power generation capacity of 20 MW that uses rice husks as the main fuel and is a local production for local consumption type. The operation of this power plant is expected to increase the renewable energy ratio and to lead to a stable supply of energy, making it an initiative to achieve both de-carbonization and supply capacity. It will also contribute to the creation of local employment and the development of the local economy.

The groundbreaking ceremony for this power plant was held in the presence of a total of 100 people from the Vietnamese government, the joint venture company, and construction-related parties, including Mr. Hoa, Vice Chairman of Hau Giang People’s Committee, Mr. Dung, Director of Electricity and Renewable Energy Department of the Ministry of Industry and Trade, and Mr. Hiroi, Japanese Embassy Secretary, to pray for construction safety.

Since this project was selected as Financing Programme for the Joint Crediting Mechanism (JCM) Model Projects (*1) , it has been decided that financial support will be provided (*2).

Picture of the Groundbreaking Ceremony

As an integrated energy company with a mission of de-carbonization, erex will contribute to the prevention of global warming and the realization of a de-carbonized society in Japan and overseas.

Outline of Hau Giang Biomass Power Plant

Upcoming Schedule

Conceptual Drawing at Completion

*1: ” Financing Programme for the Joint Crediting Mechanism (JCM) Model Projects in FY2022 ” was solicited by the Ministry of the Environment, Japan and an implementing organization, the Global Environment Centre Foundation (GEC).
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. This project is being implemented under the cooperation of the Government of Vietnam and the Government of Japan.
*2: Announced in “Adoption of Project under the Joint Crediting Mechanism for FY2022” dated September 13, 2022

For inquiries regarding this news releases, please contact;
IR & PR Department, erex Co., Ltd.
TEL: +81-3-3243-1167