Japanese Firm to Build Second Biomass Power Plant in Vietnam

Japan’s renewable energy firm Erex is to invest in a 50MW biomass power plant project in Van Yen district, in the northern mountainous province of Yen Bai in Vietnam. The project matches the local socio-economic development plan and the Southeast Asian country’s national green growth strategy.

The Yen Bai 1 biomass power plant project will be the first electricity project in Yen Bai to receive approval since the adoption of Vietnam’s Power Development Plan VIII in 2023.

Representative Director and President of Erex  Honna Hitoshi said the plant will be built on an area of around 10ha in the Bac Van Yen industrial cluster, with a total estimated capital of up to US$120 million.

Scheduled for operation in early 2027, the biomass plant will generate 50MW of electricity, with around 45MW supplied to the national grid. It is expected to use nearly 500,000 tonnes of wood scraps and by-products as fuel annually.

This move is Erex’s second foray into the realm of biomass power development in Vietnam. According to the Vietnam News Agency Its first plant, boasting a capacity of 20 MW, is now under construction in the Mekong Delta province of Hau Giang and slated for operation later this year.