Lao Cai (VNA) – The construction of Yen Bai 1 biomass power plant, a 50-megawatt project worth nearly 3 trillion VND (about 114 million USD), began on December 19 as part of the country’s efforts to expand renewable energy and cut carbon emissions.
The project, developed by Erex Yen Bai Biomass Power Co. Ltd. is located in Dong Cuong commune, Lao Cai province. It is backed by Japan’s Erex Group and falls under the Joint Crediting Mechanism, a bilateral initiative between Vietnam and Japan to reduce greenhouse gas emissions.
The plant will use agricultural and forestry by-products as fuel and is expected to supply about 300 gigawatt-hours of electricity annually once it enters commercial operation in early 2028.
Japanese Ambassador to Vietnam Ito Naoki said the plant would support both countries’ carbon neutrality goals and help create a positive cycle linking local agriculture, energy self-sufficiency and emissions reduction.
Vice Chairman of the Lao Cai Provincial People’s Committee Ngo Hanh Phuc said the project aligns with the province’s socio-economic development strategy and investment priorities. It is expected to boost industrial output, supply electricity to the national grid, create jobs and raise local budget revenues, he said.
Phuc urged the investor to mobilise resources to ensure quality and timely construction while complying with Vietnamese regulations on investment, land use, construction and environmental protection.
Lao Cai province hopes the project will help attract more Japanese and foreign investors to the province, he added./.
VNA
