Order Intake for a Energy from Waste Plant in Bac Ninh, Vietnam

JFE Engineering Corporation has agreed with Thuan Thanh Environment Joint Stock Company (TT) to jointly establish T&J Green Energy Company Limited and start a Waste to Energy business in Bac Ninh Province, Vietnam.

January 2022

Construction of the Waste to Energy plant, to be operated by T&J, is scheduled to begin in January 2022 and to be completed in January 2024. JFEE will be in charge of the design and construction of the plant, while TT will be in charge of obtaining permits and licenses, securing land for the plant, collecting and transporting the waste, and treating the incinerated ash. The plant will incinerate 500 tons of municipal solid waste and industrial solid waste per day, with a power output of 11.6 MW and an expected annual power generation of 91,872 MWh. The electricity generated will be sold to the Vietnam Electricity Corporation under the Feed in Tariff system.

Standardkessel Baumgarte (SBG), a subsidiary of JFE Engineering, plays an important role in this project. SBG will do a certain part of the engineering works for the plant and especially for the firing system and boiler, which are core technologies of SBG.

This project is financially supported by the Japanese government through the Financing Programme for the Joint Crediting Mechanism (JCM) Model Projects in FY 2021. A financing package from the International Finance Corporation (IFC), a member of the World Bank Group, including a loan from the Finland-IFC Blended Finance for Climate Program, will be used to finance of T&J's plant construction and operation. This financing was achieved under the expectation of the project's proper waste disposal and the potential to reduce greenhouse gas emissions by approximately 600,000 tons over 15 years. This project will be implemented under the cooperation of the Vietnamese and Japanese governments.

TT is a leading recycling company in Vietnam that comprehensively develops various recycling businesses including waste incineration. This project was realized by taking advantage of the strengths of both companies, including TT's experience, sales capabilities and JFEE's extensive experience in the construction and operation of Waste to Energy plants as well as the ability to execute projects in Vietnam. Starting with this project, both companies aim to launch similar projects on an ongoing basis.

Based on JFEE's experience in the construction and operation of waste treatment plants, JFEE will continue to contribute to the realization of a resource-recycling society by promoting business planning, construction, and operation in this field in Japan and overseas.