Vietnam capitalises on abundant sources of biomass energy

Biomass energy has emerged quickly in Vietnam, with interest in the energy source – which is ripe with potential - from both local business communities and the Government, according to Nhip Cau Dau Tu (Business Review) magazine.
Biomass energy has emerged quickly in Vietnam, with interest in theenergy source – which is ripe with potential - from both local businesscommunities and the Government, according to Nhip Cau Dau Tu (BusinessReview) magazine.

Increasing European andJapanese demand has provided the sector with the stimulus it needs tostart thriving in Vietnam, where about 6.8 million tonnes of rice huskand 5.8 million tonnes of sawdust are discarded each year and can beused to generate power.

A local enterprise buysprocessed sawdust at 500,000 VND per tonne (23 USD), compressing theminto blocks and selling them overseas for up to 270 USD per tonne.

The prices sound profitable but still fall short of potential due tothe lack of Forest Stewardship Council (FSC) certification, whichensures products come from responsibly managed forests that provideenvironmental, social and economic benefits. The Vietnamese exportsequipped with adequate certificates can earn up to 400-500 USD pertonne.

In fact, only 600,000 tonnes of sawdust are annually exported.

Recently, the sector has seen a sight of development as someinvestors are willing to pour a great deal of money to cooperate withforest planters in a bid to qualify for FSC criteria.

Domestically speaking, sawdust has partly been used to replace fossilfuels in industrial production. The switch from coal and FO oil tosawdust can cut cost by more than 50 and 70 percent, respectively.

According to the Handicraft and Wood Industry Association of Ho ChiMinh City (HAWA), if Vietnam utilises 2.5 million tonnes of sawdust asdomestic combustible material, the nation will reduce its imported oilvolume by 1,000 litres.

Meanwhile,construction has been launched at a state-funded thermo-electric plantrunning on rice husk in the Mekong Delta province of Hau Giang, thefirst of its kind in Vietnam.

Every year, theMekong Delta, the country’s largest rice granary, throws away more than 5million tonnes of rice husk into regional channels and ditches.Every day, the future thermo-electric plant is estimated toconsume some 250 tonnes of husk, maximising the use of rice productionby-products to protect the environment, generate additional profit andjobs for locals. As nothing goes to waste, discarded matter becomesmaterial for the making of high-quality cement and heatproof objects.

After the 31-million-USD Hau Giang plant, 19similar facilities will be built across the country, including anotherfour located at the same region.-VNA

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