Hau Giang plants seeds for rice-husk power plant

Huynh Thanh Hoang, deputy director of Hau Giang’s Department of Industry and Trade, told VIR the joint venture was preparing to begin construction work.

The first rice husk generated power plant worth roughly $31 million is located in the rice basket of Hau Giang province. The investor plans to build the 10 megawatt plant within the next two years using techniques and equipment provided by the UK’s Torftech LTD and Germany’s ERK EckRohrkessel GmbH through C.H.E. After completion, the plant will consume 250 tonnes of rice husks daily with waste redeployed to produce cement and insulation materials.

Pham Trong Thuc, head of the Ministry of Industry and Trade’s Renewable Energy said that the rice husk generated power plant in Hau Giang was the first project in the wider plan. Last year, Hau Giang Power Plant Joint Stock Company and Malaysia’s C.H.E Group signed a memorandum of understanding to build 20 biomass-fired power plants across Vietnam. Five will be built in the Mekong Delta provinces of An Giang, Kien Giang, Hau Giang, Dong Thap and Can Tho, with a total capacity of 200 megawatts.

Chong Che Chek, business director of C.H.E was recently quoted by foreign media as saying that the plants would be installed in four phases over five years. “This is the power plant of its kind to be built in Vietnam. Another unique feature is its production of non-hazardous high quality ashes,” he said.

Although Vietnam is said to have huge potential for renewable energy, private investors have shunned the sector because of a lack of incentives. So far, the government has issued just two decisions to support small hydro and wind power projects in 2008 and 2011, respectively. Accordingly, the feed-in-tariff for renewable power generated from solid waste-power plant stands at 10.05 US cents per one kilowatt hour. This level is higher than the tariff of 7.8 US cent fixed for wind power plants. However, the feed-in-tariff proposed for biogas power plant generated from solid waste is just 7.28 US cents per one kilowatt hour. The subsidy is likely to take effect in 2014 after receiving government approval.