IFC Promotes Waste Power Generation Solution For Vietnam's Transition To Low-Carbon Economy

IFC will package a $ 30M loan package for a waste power plant construction project in Bac Ninh Province as Vietnam accelerates its efforts to achieve virtually zero carbon dioxide emissions by 2050. Provide. The project aims to increase the state's waste disposal capacity and reduce its environmental impact while protecting local populations from the health risks of untreated waste.

The IFC loan package includes a $ 15M concessional loan from the Finland-IFC Blended Financing Climate Change Program. The program was established to promote innovative investments and loans that are expected to be highly effective in developing and responding to climate change, and to attract private funding to climate change-friendly projects in developing countries. This project is also subsidized based on the equipment subsidy project * of the bilateral credit system (JCM) financial support project by the Government of Japan in 2021 . The project is being carried out in cooperation with the Government of Vietnam and the Government of Japan.

T & J Green was jointly established by JFE Engineering Co., Ltd., which has a proven track record in the construction and operation of waste treatment facilities, and Thuan Thanh Environment JSC, a recycling company based in Bakunin Province. Energy Company Limited) will take the lead in utilizing the financing package with the aim of starting a power generation business using a modern waste power plant in Tuantyne County, the province. The plant, which is scheduled to start operations in 2024, is capable of incinerating general waste and industrial waste with a daily capacity of 500 tons, and is expected to significantly improve the current waste treatment capacity of the ministry.

With approximately 1.4 million inhabitants and 16 industrial zones, Bac Ninh Province has more than 1,000 tonnes of general waste per day, only half of which is inefficient incinerators without energy recovery or carbon dioxide emission control. Is being processed. Vietnam's total solid waste emissions in 2019 will be approximately 36 million tonnes, which is expected to double by 2030, with more than 60% expected to be untreated or undisposed. .. Under these circumstances, the plant developed by T & J Green Energy will be an environmentally friendly waste treatment and disposal solution that will help avoid soil and groundwater pollution problems.

“This waste power plant will be the most state-of-the-art facility in Vietnam,” said Vu Man Tien, President of T & J Green Energy. “By introducing an advanced waste treatment solution with IFC financing, we will be able to improve the ministry's waste management infrastructure, improve the living environment of local residents and reduce health risks. The new plant will enable us to reduce health risks. We will be able to address related environmental and public health issues and meet the growing demand for local industrial estates. "

Waste incineration at the plant is expected to generate 91,872 MWh of clean electricity annually and reduce greenhouse gas emissions by approximately 600,000 tonnes over 15 years. The generated power will be sold to Vietnam Electricity Corporation under a feed-in tariff system for 20 years.

"By using waste as a clean energy source, it will be a sound solution to solve Vietnam's urgent waste problem and support the country's transition to a low carbon growth trajectory," said IFC's Vietnam. Kyle Kelhofer, Country Manager for Laos, Cambodia, said. "IFC's financing of private waste disposal companies encourages the private sector's involvement in Vietnam's core infrastructure while curbing government burdens."