Signing Ceremony for the EPC Contract of the Yen Bai Biomass Power Plant in Vietnam
erex Co., Ltd.
Signing Ceremony for the EPC Contract of the Yen Bai Biomass Power Plant in Vietnam
erex Co., Ltd. (Head Office: Chuo-ward, Tokyo, Representative Director and President: Hitoshi Honna, hereinafter referred to as “the Company”) is pleased to announce that on November 7, 2025, erex Yen Bai Biomass Power Co., Ltd., the Company’s subsidiary, held a signing ceremony for the EPC (Engineering, Procurement, and Construction) contract for the Yen Bai Biomass Power Plant (hereinafter referred to as the “Power Plant”), which the Company is developing in Vietnam with Power Engineering Consulting Joint Stock Company 2 (a subsidiary of Vietnam Electricity, Head Office: Ho Chi Minh City, Vietnam, Chairman: NGUYEN CHON HUNG, hereinafter referred to as “PECC2”) at the head office of Vietnam Electricity (EVN).
1. Background of contract signing
The Power Plant is positioned as a high-priority project in the “8th National Power Development Plan (PDP8),” which was approved by the Vietnamese government on April 1, 2024. The Company obtained an Investment Registration Certificate (IRC) from the Vietnamese government in May 2024, held a groundbreaking ceremony and started the site preparation work in October 2024.
The Company has also previously collaborated with PECC2 on the development of the Hau Giang Biomass Power Plant in Vietnam, which started operations in April 2025. Furthermore, based on this track record, in April 2025, the Company concluded a business alliance agreement with PECC2 with the aim of mutual cooperation to achieve de-carbonization, improve energy self-sufficiency, ensure stable power supply, increase employment, and improve income, utilizing biomass energy in Vietnam.
Given this background, the Company decided to select PECC2 as the EPC contractor for the Power Plant, and a contract signing ceremony was held.
2. Future outlook
The Yen Bai Biomass Power Plant is scheduled to start operations at the end of fiscal year 2027. Similarly, for the Tuyen Quang Biomass Power Plant, which is also under development in Vietnam, the EPC contractor will be decided at a later date, and operations are scheduled to start at the end of fiscal year 2027. Both of these projects were selected for Financing Programme for Joint Crediting Mechanism (JCM) Model Projects (*1) in FY2023 (*2).
In Vietnam, economic growth has led to increased electric power demand and a rise in energy imports, while the country has also declared its commitment to carbon neutrality by 2050, requiring measures to address de-carbonization. The Company believes that these power plants, which utilize Vietnam’s unutilized biomass resources, can contribute not only to de-carbonization but also to improving energy self-sufficiency and creating jobs in Vietnam.
Furthermore, by bringing the carbon credits generated from these power plants back to Japan and utilizing them, the Company aims to contribute to de-carbonization not only in Vietnam but also in Japan.
*1: 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 with the cooperation of the Vietnamese and Japanese governments
*2 The announcement was made on March 22, 2024
■ Power Plant Overview
Business Company Name |
erex Yen Bai Biomass Power Co., Ltd. |
Power Plant Name |
Yen Bai 1 Biomass Power Plant |
Construction Site |
Lao Cai Province (formerly Yen Bai Province), Socialist Republic of Vietnam |
Investing Company |
erex Co., Ltd. 100％ |
Power Generation Output |
50MW |
Fuel |
Woody residue (approximately 500,000 tons per year) |
Scheduled Start of Operations |
End of fiscal year 2027 |
Scenes from the contract signing ceremony with PECC2
■ Contact
erex Co., Ltd. / IR&PR Department
TEL：+81-3-3243-1167 FAX：+81-3-3243-1184
E-mail：ir.info@erex.co.jp
Note:
This document is an English translation of the original Japanese language document and has been prepared solely for reference purposes. No warranties or assurances are given regarding the accuracy or completeness of this English translation. In the event of any discrepancy between this English translation and the original Japanese language document, the original Japanese language document shall prevail in all respects.