Local authorities have granted an investment licence for the 1.2-trillion-dong ($59m) project, scheduled to operate in 2013 with a an annual production of 331.5 GWh, according to Vietnam’s official news agency.
Vietnam High-Tech Renewable Biomass Energy Joint Stock Company will construct the plant in the town of Phong Chau in the Phu Ninh district, which will apply “modern technologies from G8 member countries”, said local reports.
Biomass has been eyed as a promising energy source for Vietnam, which as a leading rice producer has abundant resources of rice husks, which are often disposed of in rivers and canals.
A study by the World Bank’s International Finance Corporation (IFC) – Rice Husk Biomass: Turning Waste into Energy and Profits – found that rice husks could provide a valuable clean energy source for the country.
Vietnam is set to generate 7.52 million tonnes of rice husks this year, about half from the region of the Mekong delta. The IFC expects around 1.5 million tonnes to be used to generate 1.2 billion kWh of power annually from 2010.