Construction begins at two Vietnam biomass plants. Photo: Erex

Each plant will have 50MW generation capacity and consume around 500,000 tonnes of wood residue per year, which will be sourced from northern Vietnam. Both plants are slated to put into operation in mid-2027.

The power plants that were positioned as priority projects in the Power Development Plan VIII, whose implementation plan was approved in April this year.

PDP8 states that it will respond to the expansion of electric power demands and strengthen renewable energy with the aim of achieving zero CO2 emissions by 2050, and the biomass plants will contribute to these efforts.

In addition, both projects are backed by Japan's subsidy scheme that supports potential projects that could contribute to its Joint Crediting Mechanism to cut greenhouse gas emissions. The construction cost of each plant is estimated at over $100 million.

These biomass power plants are part of Erex's ongoing expansion in Vietnam. Specifically, the Japanese renewable energy company has planned 18 newly constructed biomass power plants in the country.