Malaysia's company, CHE Group, is collaborating with Hau Giang Power Plant Joint Stock of Vietnam to undertake the construction of 20 biomass power plants worth 600 million USD in Vietnam, according to Bernama.

CHE Group Managing Director K.K. Chang said the 20 biomass power plants will use rice husks as its "fuel", with each of the power plants able to produce 10 megawatt of electricity.

As planned, engineering work for the first power plant will start by end of this year and the construction of all 20 biomass power plants will be completed in five years.

Chang said Vietnam 's Hau Giang province will be the host for the first biomass power plant while the other power plants will be spread out in six provinces throughout the country.

"This is the first of its kind power plant to be located in Vietnam and one of its unique features is the ability to produce non-hazardous high quality ash," Chang said, adding that the equipments and machinery for the power plants will be manufactured and supplied by CHE's factories in Malaysia .

CHE partnered European technology companies, Torftech Ltd from the United Kingdom and Germany 's ERK Eckrohrkessel GMBH, to design a state-of-the-art system, utilising risk husks as fuel to generate electricity.

CHE and Torftech has also formed a joint-venture company, TORCHE Energy Sdn Bhd, to be the main contractor for the Vietnam project, he said.-VNA