Giz2013 en-exploring-biogas-market-opportunities-vietnam

EXPLORING BIOGAS MARKET
OPPORTUNITIES IN VIETNAM

www.renewables-made-in-germany.com

EXPLORING BIOGAS MARKET
OPPORTUNITIES IN VIETNAM

Authors
Nguyen Duc Cuong et al
November 2011
Editor
Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH
On behalf of the
German Federal Ministry
of Economics and Technology (BMWi)
Contact
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Potsdamer Platz 10, 10785 Berlin, Germany
Fax: +49 (0)30 408 190 22 253
Email: pep-southeastasia@giz.de
Web: www.giz.de/projektentwicklungsprogramm
Web: www.exportinitiative.bmwi.de

This report is part of the Project Development Programme (PDP) South-East Asia. PDP South-East Asia is implemented by the Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry of Economics and Technology
(BMWi) under the “renewables – Made in Germany” initiative. More information about the PDP and about renewable energy markets in
South-East Asia: www.giz.de/projektentwicklungsprogramm

This publication, including all its information, is protected by copyright. GIZ cannot be liable for any material or immaterial damages caused
directly indirectly by the use or disuse of parts. Any use that is not expressly permitted under copyright legislation requires the prior consent
of GIZ.
All contents were created with the utmost care and in good faith. GIZ assumes no responsibility for the accuracy, timeliness, completeness or
quality of the information provided.

Exploring Biogas Market Opportunities in Vietnam

I

Content
INTRODUCTION

1

1. REVIEW AND ANALYSIS OF THE ELECTRICITY INDUSTRY IN VIETNAM

3

1.1. Power need and growth rate for 2001-2010

3

1.2. Electricity pricing

7

1.3. Power production and potentials to 2020 (next 10 years)

10

1.4. Existing power sources and projection for the next 10 years

11

1.5. Electricity market actors

13

1.6. Roadmap for the competitive electricity market

13

1.7. Electrical grid

15

2. UNDERSTANDING AND ASSESSING THE BIOGAS ENERGY MARKET IN
VIETNAM

16

2.1. Biogas sources in Vietnam
16
2.1.1. Biogas from domestic animals’ wastes
16
2.1.2. Biogas from municipal wastes
18
2.1.3. Biogas production from waste treatment processes (solid and liquid wastes) in specific food, foodstuff
and beverage industries
19
2.2. Use of biogas in Vietnam

22

2.3. Overview of biogas projects in Vietnam
2.3.1. Small sized – household biogas projects
2.3.2. Medium and large sized biogas projects

27
28
29

2.4. Information about partnership in biogas development between Vietnam and foreign parties
33
2.4.1. Government and foreign organization funding for demonstration projects or policy making and market
promotion;
33
2.4.2. Partnership type (ii) taking part in waste treatment methane collection projects; and (iii) provision of
equipment and technology.
36
2.5. Economics of biogas projects
2.5.1. Investment cost

37
37

2.6. Available biogas technologies in Vietnam
2.6.1. Popular technologies in Vietnam

45
45

2.7. Information about local companies that are potential candidates as partners with German firms in
biogas development
52

3. REVIEW, RESEARCH AND FORMATION OF THE LEGAL FRAMEWORK FOR
THE DEVELOPMENT OF RENEWABLE ENERGY/BIOGAS IN VIETNAM
53


II

3.1. Summary of legislative instruments focusing on renewable energy/biogas

53

3.2. Barriers to renewable energy development in general and biogas energy

58

3.3. Trends and pathways for institution, regulatory arrangements, economic arrangements and
frameworks for international cooperation in the biogas energy market

61

4. RECOMMENDATIONS FOR POTENTIAL PROJECTS IN THE BIOGAS
ENERGY TECHNOLOGY MARKET

65

4.1. Identifying the needs for specific technologies, services, products and opportunities for Vietnam –
Germany partnership

65

4.2. Information about market entry opportunities and procedures for German companies interested in
doing business (import/export) or investment (getting license, partnership) in the field of biogas energy 67
4.3. Background information about relevant local institutions and contact information for German
companies’ reference – also, information about the role and responsibility of different stakeholders and
agencies in the biogas field
69

APPENDICES

75

Appendix 1. Industrial scale alcohol producers

75

Appendix 2. Industrial scale aquatic production and processing facilities

76

Appendix 3. Industrial scale sugar production and processing facilities

80


III

ministrey

List of Tables
Table 1.1. Gross capacity of power plants by 2010, by owners ................................................. 3
Table 1.2. Electricity retail prices for 2011 ................................................................................ 8
Table 1.3. Tariff with avoidable costs for 2011 ....................................................................... 10
Table 2.1. Solid waste from domestic animals, 2010 ............................................................... 17
Table 2.2. Methane amount from domestic animals’ wastes, 2010 ......................................... 17
Table 2.3. Municipal waste generation in Vietnam, 2010 (million tons) ................................. 18
Table 2.4. Theoretical gross biogas potentials, 2010 ............................................................... 21
Table 2.5. Summary of expected electricity generation capacity from biogas and municipal
wastes to be added to the grid (MW)........................................................................................ 22
Table 2.6. Gas consumption by system size ............................................................................. 24
Table 2.7. Classification of biogas systems as recommended by local prestigious institutions
in terms of biogas technology................................................................................................... 28
Table 2.8. Medium and large sized biogas projects ................................................................. 31
Table 2.9. Projects with a foreign partner in medium and large sized biogas collection ......... 36
Table 2.17. Background information of potential investors and partners in biogas development
.................................................................................................................................................. 52
Table 3.1. Summary of legal frameworks conducive to renewable energy development in
Vietnam .................................................................................................................................... 54
Table 3.2. Barriers and interpretation ....................................................................................... 58
Table 3.3. The legal framework for the development of biogas/renewable energy ................. 62
Table 4.1. Potentials and ability to develop biomass and biogas energy ................................. 67
Table 4.2. Gross capacity of renewable electricity connected to the grid in use (MW)........... 67


IV

List of Figures
Figure 1.1. Power need and growth rate, 2001-2010 ................................................................. 3
Figure 1.2. Distribution of sources, by owner ............................................................................ 6
Figure 1.3. Distribution of sources, by supply mode and fuel ................................................... 6
Figure 1.4. Distribution of power sources by 2020 .................................................................. 12
Figure 2.1. Current uses of biogas ............................................................................................ 24
Figure 2.2. Biogas lamp (illustration)....................................................................................... 25
Figure 2.3. Biogas-fired power generating system ................................................................... 26
Figure 2.4. KT 1 and KT2 models ............................................................................................ 28
Figure 2.5. Energy Institute’s floating cover biogas system .................................................... 46
Figure 2.6. Energy Institute’s fixed dome cover biogas system ............................................... 46
Figure 2.7. Can Tho University’s biogas system design .......................................................... 47
Figure 2.8. Biogas system, model KT-2 ................................................................................... 47
Figure 2.9. VACVINA’s biogas system ................................................................................... 48
Figure 2.10. RDAC’s design .................................................................................................... 48
Figure 2.11. Vinyl bag-typed biogas system ............................................................................ 49
Figure 2.12. 5,000 m3 covered anaerobic lagoon in Thai Nguyen ........................................... 50
Figure 2.13. UASB + SMAG anaerobic tank at Lam Son sugarcane plant, Thanh Hoa ......... 50
Figure 2.14. EGSB and SAR_T anaerobic tank under construction in Quang Ngai ................ 51
Figure 4.1. Balance of demand and supply of primary energy................................................. 66


V

Currency
1 USD =
1 EUR =

VND 20.83 (Sep 2011)
VND 28.384 (Sep 2011)

Measurement
W
kW
MW
GW

Watt
Kilowatt
Megawatt
Gigawatt

Wp
kWp
MWp
GWp

Watt peak
Kilowatt peak
Megawatt peak
Gigawatt peak

Wh
kWh
MWh
GWh

Watt hour
Kilowatt hour
Megawatt hour
Gigawatt hour


List of Acronyms
ADB

Asian Development Bank

BF

Biofuel

BG

Biogas

CDM

Clean Development Mechanism

CERs

Certified Emission Reductions

EGSB

Expansion Granular Sludge Bed Digester

EI

Energy Institute

EU

European Union

EVN

Electricity of Vietnam Corporation

GDP

Gross Domestic Product

GG

Greenhouse gas

GW

Gigawatt

HCMC

Ho Chi Minh City

HDPE

High density Polyethylene

IPP

Independent Power Producer

JICA

Japan International Cooperation Agency

MARD

Ministry of Agriculture and Rural Development

MoIT

Ministry of Industry and Trade

MRD

Mekong River Delta

MWe

Megawatt electrical

N&RE

New and renewable energy

ODA

Official development aid

PDD

Project design document

PPA

Power purchase agreement

REAP

New & Renewable Energy Action plan

toe

Ton of oil equivalent

UASB

Up flow Anaerobic Sludge Blanket

WB

World Bank

VI


1

0. Introduction
Development goals and visions of Vietnam’s national electricity industry in the foreseeable
future are reflected in the Prime Minister’s Decision 1208/QĐ-TTg, dated July 12, 2011, in approval
of the “Master plan for the development of national electricity industry in Vietnam for 2011-2010 and
vision to 2030”, that available renewable energy sources in Vietnam will be prioritized and promoted
to increase the proportion of power output from renewable energy from the current marginal level to
5.6% and 9.4% in 2020 and 2030 respectively (by rated capacity and not including hydropower
generation of 30 MW output or higher).
The development strategy for renewable energy in Vietnam to 2030 and vision to 2050, as well
as the Master plan for the development of renewable energy in Vietnam for 2011-2020 and vision to
2030 (drafts1), have also been conceived and are currently being reviewed by the Government. In these
draft strategy and master plan for renewable energy, biogas energy of various sources are viewed as a
renewable energy of priority, as in addition to grid power production (about 439 MW), biogas electricity
will also be developed for off-grid residential areas (about 12,000 households) and use of heat generated
from biogas will be promoted for household cooking and agroforestry processing. About 10 million m3
of biogas instruments are expected to be developed in different types and sizes for power and heat
generation as well as cogeneration.
Vietnam is a developing country with favorable geographic position and climate, where
economic activities rely heavily on agroforestry and animal husbandry. This is an advantage that gives
Vietnam access to bounteous renewable energy resources of massive reserves that can be effectively
put to use to generate enough energy to meet local needs, as a replacement to fossil fuel while
contributing to environmental protection at the same time (minimizing emission of greenhouse gas,
acid rain gases, dust and so on).
The Project Development Programme (PDP) South-East Asia of the German Development
Cooperation Agency (GIZ), on behalf of the German Federal Ministry of Economics and
Technology (BMWi), aims to promote bilateral cooperation and experience exchange between
Vietnamese and German companies. This study is part of the PDP South-East Asia Project and
its key purpose and focus is to capture an overview of the status and potentials of producing
and utilizing biogas in Vietnam, as well as identify the opportunities and challenges to the
development of a biogas technology market. To be specific:
■

Capturing an overview of Vietnam’s electricity industry

■

Understanding the biogas market in Vietnam

■

Reviewing the available legal framework for renewable energy development in Vietnam

■

Making recommendations on the pathway for development of biogas energy technology and
market.
This report has four parts:

Part 1. Overview of Vietnam’s electricity industry. This section takes a snapshot of current
power consumption, power sources, needs and power sources development targets in Vietnam for the
next decade (to 2020). It then lists electricity prices by categories, including prices of micro-

1

Apr. 2011, the Ministry of Industry and Trade has submitted the draft to the Government for review and is awaiting
approval.


2

hydropower (≤ 30 MW) and wind power sources. The roadmap for a competitive power market and
entry in this market is also studied and documented.
Part 2. Understanding the biogas market in Vietnam. The discussion concentrates on the
analysis and assessment of the production and use of biogas as well as the status of previous and ongoing biogas projects. This is followed by a review of the efficiency and existing types of technology
in use. Finally, the section gives an update and consolidation of information on various business
activities that are going on in the biogas field, followed by discussions on technology application
potentials.
Part 3. Review of the conducive legal framework for renewable energy development in
Vietnam. This part gives an outline of related legislative instruments including strategies, development
plans and policies influencing the development of renewable energy/biogas energy. Opportunities and
barriers are also identified and explained.
Part 4. Recommendations on the future development of biogas energy technology and market.
The need for biogas, potentials for technology development and the government’s biogas-fire power
generation ambitions are compiled and analyzed. Investment opportunities, market information and
potential partners for the development of a biogas market in Vietnam are also studied and discussed.
Despite huge efforts in gathering information and data about biogas in Vietnam as
demonstrated throughout the report, drawbacks in terms of data sources and expected information are
unavoidable. Explanations for such shortcomings include: (i) additional funding for sample
verification and examination in the field and interviews is recommended, (ii) materials, data or
statistics about power sources, consumption levels, technologies are not readily available (no
institutions are formally responsible for data collection, update and reporting); getting access to and
collecting information from reports and studies in this domain in Vietnam is now a challenge,
including even data from both local and international partners. As biogas projects are often small and
medium-sized enterprises (Groups B and C2 projects), they are only subject to sub-national
(provincial) investment licensing. Consequently, it needs some time to get access to information from
private investors and local regulators, as hesitance sometimes exists in the discussion and information
providing process.

2

Medium and small sized categories B, C or even below C projects, with total invested capital of less than VND 1,500
billion (about US$ 73 million).


3

1. Review and analysis of the electricity industry in Vietnam
1.1. Power need and growth rate for 2001-2010
In the last decade (2001-2010), commercial electricity sales to economic sectors and
household use were on sustained increase at a high growth rate of about 14.5% on average.
Commercial electricity sales volume increased from 31.1 billion kWh in 2001 to 99.1 billion kWh in
2010, which is more than three times higher in just 10 years. Commercial power output in 2010 (99.1
billion kWh) was 14.3% higher than in 2009 (a 2.5 times growth compared to GDP). The Figure
below illustrates electricity need and growth in Vietnam between 2001 and 2010.
Figure 1.1. Power need and growth rate, 2001-2010
Nhu cầu điện 2001 - 2010
Power need for 2001-2010
120,000

18%
17.0%

14.4%

14.3% 14%

13.7%
12.9%

13.0% 12.8% 12.8%

80,000

12%
10%

60,000
8%
40,000

6%
Nhu cầu điện

20,000

4%

Tốc độ tăng

Growth Tốc độ (%) (%)
rate tăng

Power demand(GWh)
Nhu cầu điện (GWh)

16%

15.5%

100,000

2%
0

0%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Statistics show that at the end of 2010 the total rated capacity of all power sources in Vietnam
was 21,542 MW, including 11,848 MW from EVN (55%) and 9,694 MW of non-EVN output (45%,
including joint ventures between EVN and other partners). Details of power sources as of 2010, by
owners, fuels and technologies are described in the following tables and figures.
Table 1.1. Gross capacity of power plants by 2010, by owners
No

Power plant

Generators

Gross capacity
I

Hydropower

Rated capacity
(MW)
21,541.5

Owner

7,633

1 Sơn La

1

400

EVN

2 Hoà Bình

8

1920

EVN

3 Thác Bà

3

120

EVN

4 Tuyên Quang

3

342

EVN

5 Bản Vẽ

2

320

EVN

6 Quảng Trị

2

64

EVN

7 A Vương

2

210

EVN

8 Cửa Đạt

2

97

JV with Vinaconex

9 Vĩnh Sơn

2

66

EVN


No

Power plant

Generators

4

Rated capacity
(MW)

Owner

10 Hinh River

2

70

EVN

11 Pleikrong

2

100

EVN

12 Ialy

4

720

EVN

13 Sê San 3

2

260

EVN

14 Sê San 4

3

360

EVN

15 KrongH'nag

2

64

Joint venture

16 Buôn Tua Srah

2

86

EVN

17 Tranh River 2

1

95

EVN

18 Srepok 3

2

220

EVN

19 Srepok 4

2

80

EVN

20 Buôn Kuôp

2

280

EVN

21 Hương Điền

2

54

Joint venture

22 Ba Hạ River

2

220

EVN

23 Trị An

4

400

EVN

24 Đa Nhim

4

160

EVN

25 Thác Mơ

2

150

Joint venture

26 Hàm Thuận

2

300

EVN

27 Đa Mi

2

175

EVN

28 Đại Ninh

2

300

EVN

Coal-fired
thermoelectricity

II

2,745

1 Phả Lại 1

4

440

Joint venture

2 Phả Lại 2

2

600

Joint venture

3 Uông Bí

2

105

EVN

4 Uông Bí extension

1

300

EVN

5 Ninh Bình

4

100

Joint venture

6 Haiphong

2

600

EVN

7 Quảng Ninh

2

600

EVN

Fuel oil-fired
thermoelectricity
1 Thủ Đức

3

169.5

EVN

2 Cần Thơ

1

37.5

EVN

3 Ô Môn

1

330

EVN

III

IV

Steam turbines +
HRSG systems

537

3,197


No

Power plant

Generators

5

Rated capacity
(MW)

Owner

1 Bà Rịa

8GT+S9+S10

388

Joint venture

2 Phú Mỹ 21

4GT+ST23,26

949

EVN

3 Phú Mỹ 1

3GT+S14

1140

EVN

4 Phú Mỹ 4

2GT+ST3

468

EVN

5 Thủ Đức

4GT

102

EVN

6 Cần Thơ

4GT

150

EVN

500

Private

V

Diesel-fired and
micro hydropower
plants

VI

Non-EVN

6,929.5
Northwest Power
Development JS Co.
Que Phong Hydropower JS
Co.

1 Nậm Chiến

2

32

2 Bản Cốc

3

18

3 Na Dương

2

111

TKV

4 Cao Ngạn

2

115

TKV

5 Cẩm Phả

2

600

TKV

6 Sơn Động

2

220

TKV

7 Bình Điền

2

44

8 Côn River

3

63

9 Sê San 3A

2

108

Joint venture

10 Za Hưng

2

30

Za Hung JS Co.

11 Bắc Bình

2

33

12 Đa Dâng 2

2

34

13 Cần Đơn

2

78

Da River Co.

14 Srokphumieng

2

51

IDICO

15 Hiệp Phước

3

375

Foreign investors

16 Formosa

1

150

Foreign investors

17 Phú Mỹ 3

2GT+ST3

740

Foreign investors

18 Phú Mỹ 22

2GT+ST3

740

Foreign investors

19 Nhơn Trạch 1

2GT+ST3

465

PVN

20 Nhơn Trạch 2

1GT

250

PVN

21 Cà Mau 1

2GT+ST1

771

PVN

22 Cà Mau 2

2GT+ST4

771

PVN

Binh Dien Hydropower JS
Co.
Geruco-Song Con
Hydropower JS Co.

Vietnam Power
Development JS Co.
Southern Hydropower JS
Co.


No

Power plant

6

Rated capacity
(MW)

Generators

Owner

23 Amata

2

13.5

Foreign investors

24 Vedan

2

72

Foreign investors

25 Bourbon

2

24

Foreign investors

1

21

PVN

26

Phú Mỹ ammonium
nitrate

27 Import from China

1000

Imported

Figure 1.2. Distribution of sources, by owner
Phân loại theo chủ sở
Distribution by owner hữu

PVN
11%

Imported
Nhập khẩu
5%
5%

Others
Khác
1%
1%

Foreign ngoài
NĐT nước
investors 10%
10%

EVN
55%

TKV
5%

Joint
Cổ phần
ventures
11%
11%

Private
Tư nhân
2%
2%

Figure 1.3. Distribution of sources, by supply mode and fuel
Distribution by loại hình mode
Phân loại theo productionsản xuất
Imported
Nhập khẩu
5%
5%

Others
Khác
2%2%
Hydropower
Thuỷ điện
38%

Steam
Turbine khí
turbines
32%
32%

Nhiệt điện dầu
Fuel gas-fired
3%
thermoelectricity
3%

38%

Nhiệt điện than
Coal-fired
18%
thermoelectricity

18%

Nhiệt điện chạy
Gas-fired
thermoelectricity
khí
2%
2%

By the latest update, the total added power capacity in 2010 was 2,546 MW. This
supplementary output however was not available until the end of the year, and as a result, the actual
consumed output from added sourced in 2010 was modest.


7

1.2. Electricity pricing
In the last four years, since the introduction of the Prime Minister Decision 26/2006/QĐ-TTg
in December 2006, setting the roadmap for marketization of electricity prices, the country has seen
five rounds of electricity price adjustment. The first round was on Jan. 1, 2007 when the average
electricity price climbed to VND 842/kWh, 7.6% higher than 2006. From that point on, the electricity
prices kept increasing over time by about 5%-10% each year. Typically, in the price rise spree of
March 1, 2011, the electricity prices saw the highest climb rate at 15.28% to reach VND 1,242/kWh,
equivalent to 6 US cents by VCB’s exchange rate of Sep. 30, 2011.
Instead of being traditionally adjusted once a year on March 1 every year, the Prime Minister’s
Decision 24/2011/QĐ-TTg of Apr. 15, 2011 now paves the way for electricity price changes every three
months on average. Circular 31/2011/TT-BCT, dated Aug. 19, 2011 of the Ministry of Industry and
Trade provides the guidelines on how electricity prices are changed based on the variance of three input
components: (i) fuel costs, (ii) exchange rate, and (iii) the composition of power output transmitted on
the grid from different sources.3 In addition, the directive also makes clear that this automatic pricing
system from Sep. 1, 2011. The following section provides in brief information related to the Prime
Minister’s Decision 24/2011/QĐ-TTg, Apr. 15, 2011 on market-based electricity pricing.
In case fuel costs and exchange rates at the calculating time deviate from the values used to
determine the current electricity prices and the composition of power output has changed compared to
the generation plan approved by the Ministry of Industry and Trade, causing sales prices at the
calculating time to be higher than the current levels by:
a) 5%, Vietnam Electricity may raise electricity prices by an equivalent margin once it has
applied for such a raise and received approval of the Ministry of Industry and Trade;
b) more than 5%, Vietnam Electricity shall file a report to the Ministry of Industry and Trade
with a copy submitted to the Ministry of Finance for verification.
After 15 business days since the Ministry of Industry and Trade reported to the Prime
Minister, whose reply is not received (or not yet received), Vietnam Electricity may automatically
change electricity prices by a 5% limit.
Below is a list of current electricity prices for 2011.

3

Changes in the distribution of power capacity can be explained by the increase of power output from coal, hydropower or
gas and the cost differences of these electricity sources.


8

Table 1.2. Electricity retail prices for 2011
Electricity retail prices for business uses
No
1

Prices
(VND/kWh)

Power supply
Power supply of 110 kV or higher voltages
a) Normal hours

646

8.94

1,068

5.12

670

3.2

1,937

9.3

1,093

5.24

683

3.3

1,999

9.6

1,139

5.47

708

3.4

2,061

9.89

Power supply of 22 kV to below 110 kV voltages
a) Normal hours
b) Off-peak hours
c) Peak demand
Power supply of 6 kV to below 22 kV voltages
a) Normal hours
b) Off-peak hours
c) Peak demand

4

3.1

1,862

c) Peak demand

3

5

1,043

b) Off-peak hours
2

Prices (US
cent/kWh)4

Power supply of below 6 kV voltages
a) Normal hours
b) Off-peak hours
c) Peak demand
Electricity retail prices for irrigative water pumping

No
1

2

4
5

Power supply
6 kV or higher voltages
a) Normal hours
b) Off-peak hours
c) Peak demand
Below 6 kV
a) Normal hours
b) Off-peak hours
c) Peak demand

Prices (US cent/kWh)5

Prices (VND/kWh)
956
497
1,415

4.6
2.4
6.8

1,023
521
1,465

4.9
2.5
7.03

Vietcombank VND/USD exchange rate as of Sep. 30, 2011: USD 1 = VND 20,830.


9

Electricity retail prices for public services
No
1

2

3

No
1

2

3

Power supply
Hospitals, daycare centers, nursery schools, primary
to high schools
a) Power supply of 6 kV or higher voltages
b) Power supply of below 6 kV voltages
Public lighting
Public services

Prices
(VND/kWh)

Prices (US
cent/kWh)6

1,117
1,192

5.4
5.7

1,217
1,291

5.8
6.2

1,242
1,291

5.96
6.2

Electricity retail prices for business uses:
Power supply
Prices (VND/kWh)
22 kV or higher voltages
a) Normal hours
1,713
b) Off-peak hours
968
c) Peak demand
2,955
6 kV – below 22 kV
a) Normal hours
1,838
b) Off-peak hours
1,093
c) Peak demand
3,067
Below 6 kV
a) Normal hours
1,862
b) Off-peak hours
1,142
c) Peak demand
3,193

Prices (US cent/kWh)7
8.2
4.6
14.2
8.8
5.2
1.5
8.9
5.5
15.3

Progressive electricity retail prices for household uses
No
1
2
3
4
5
6
7

Monthly household consumption
50 kWh (poor and low income households)
0-100 kWh (middle income households)
101-105 kWh
151-200 kWh
201-300 kWh
301-400 kWh
401 kWh and above

Prices
(VND/kWh)
993
1,242
1,304
1,651
1,788
1,912
1,962

Prices (US
cent/kWh)8
4.8
5.9
6.3
7.9
8.6
9.2
9.4

Electricity retail prices for household use in rural areas, uplands and islands not covered by the
national power grid are approved by provincial level People's Committees, but not outside the
maximum and minimum price range below:

6

8
7


10

a) Minimum price: VND 1,863/kWh (or 8.9 US cents/kWh)
b) Maximum price: VND 3,105/kWh (or 14.9 US cents/kWh).
Wind power tariff
Buyers are responsible to purchase the entire power output from wind power projects at the
price of VND 1,614/kWh at the point of delivery (exclusive of VAT; equivalent to 7.8 US cents/kWh).
Power purchase prices are subject to changes of the VND/USD exchange rate.9
Tariff with avoidable costs for 2011 (attached to Decision 66/QĐ-ĐTĐL, dated Dec. 31, 2010, of the
head of Electricity Regulation Administration).
Table 1.3. Tariff with avoidable costs for 2011
(VCB exchange rate as of Sep. 30, 2011: USD 1= VND 20,830)
Dry season
Peak
demand
Electricity
price
(VND/kWh)
North
Central
South
Rated price (for
all the 3 regions,
VND/kWh)

603
573
575

Normal
hours

590
567
568

Offpeak
hours

561
563
555

Peak
demand

529
481
511

Rainy season
OffNormal
peak
hours
hours

498
468
501

484
460
492

Surplus
output

242
230
246

1,772

The average price with avoidable cost according to this list is VND 916/kWh (about 4.43 US
cents/kWh). Nevertheless, this low price level can only be applicable to renewable energy projects
being micro hydropower plants with advantageous locations (proximity to roads and connection
nodes, and profuse water supply).

1.3. Power production and potentials to 2020 (next 10 years)
■
■

Sufficient supply to meet domestic need for electricity with generated and imported power
output by 2015 of about 194-210 billion kWh, and about 330-362 billion kWh by 2020;

■

9

For power production, the targets set in the master plan of electricity industry development for
2011-2020 and vision to 2030 are:

Priority given to the development of renewable energy sources for power production; and
increase of power output from these sources from a marginal level to 4.5% of the total power
output by 2020.

By Vietnamese laws, the currency used in purchase and sales agreements within the Vietnam territory must be the VND.
Accordingly, this Decision must clearly note that the electricity purchase price is in VND and at VND 1,641/kWh (when the
Decision was released, the VND/USD exchange rate was 1614 : 7.8 = 20692, or USD 1 = VND 20,692). Adjustment of
electricity purchase prices by VND/USD exchange rates variance is good for investors. This can be interpreted as in case
electricity from a wind power plant is bought after the Decision release date and the exchange rate is higher than the above
mentioned rate, the investors selling electricity to EVN may use the exchange rate at the time of sales to set the sales price in
VND/kWh. For example, in June 2012, a wind power investor sells electricity to EVN. The exchange rate at that time is
VND 22000 for one USD. The wind-propelled electricity price in the agreement will then be 22000 x 7.8 = VND 1,716/kWh,
not VND 1,614/kWh as original specified in the Decision.


■

11

Generated and imported power capacity by 2020 is expected to be about 330 billion kWh,
including 19.6% of hydropower, 46.8% of coal-fired thermoelectricity, 24.0% of gas-fired
thermoelectricity (with 4.0% of LNG fuel), 4.5% of power generated from renewable energies,
2.1% of nuclear power and 3.0% of imported electricity.

1.4. Existing power sources and projection for the next 10 years
As discussed in section 1.1 on retrospective power demand (2001-2010), it is known that at
present (Dec. 31, 2010), the gross rated capacity of all power sources in Vietnam is 21,542 MW and
the usable capacity is 19,735 MW.
The electricity demand in Vietnam will increase by nearly 3.3 times in the next decade, from
100.071 billion kWh in 2010 to 194 billion kWh by 2015 and 330 billion kWh by 2020.10 To
sufficiently meet the power need for development and at the same time, enlarge reserved sources from
the existing levels, key perspectives in developing power sources in Vietnam in the future include:
■

Balanced development of source capacity in the North, Central and South regions;

■

Expansion of reserved sources by 6%-7%, taking into account the risk of delay in the
construction of power plants, often for 1-2 years;

■

Estimation of coal supply capacity and potential development of natural gas mines;

■

Increasing the proportion of coal-fired thermoelectricity in the Central and South;

■

Maintaining coal-fired power sources at less than 60% of the total source capacity;

■

Development of micro hydroelectricity and power sources from renewable energies at
appropriate proportions;

■

Early introduction of pumped-storage hydroelectricity in the South to level the leverage graph
for thermoelectricity sources;

■

Development of nuclear power plants to relieve over time the dependence on fossil fuels;

■

Sustained increase of electricity import from Laos, Cambodia and China;

■

Promotion of BOT, BOO projects.

With these perspectives in mind, a pathway for the development of power sources in Vietnam
in the next decade has been drawn and elaborated upon (based on the Prime Minister’s Decision
1208/QĐ-TTg, July 21, 2011):
■
■

Upgrading the total capacity of wind power from the currently marginal level to about 1,000
MW by 2020;

■

Priority given to hydroelectric sources, especially multipurpose projects, including flood
control, water supply, power production; raising the capacity of hydroelectric sources from the
current 9,200 MW to 17,400 MW by 2020;

■

10

Development of biomass electricity generation and co-generation so that by 2020, this source
provides a gross capacity of about 500 MW;

Research and development conducted to put pumped-storage hydropower plants in operation,
in sync with the development pace of the overall power system to improve efficiency: by
2020, pumped-storage hydroelectricity to yield a total capacity of 1,800 MW;

The Prime Minister’s Decision 1208/QĐ-TTg, July 21, 2011, approving the national electricity development master plan
for 2011-2020 and vision to 2030.


12

■

Natural gas-fired thermoelectricity: by 2020, power sources using natural gas fuels to have a
capacity of about 10,400 MW;

■

Coal-fired thermoelectricity: the available domestic coal supply is to be brought into full use
for the development of thermoelectric plants, where use of locally made coal will be preferred
for the North; by 2020, the total coal-fired thermoelectricity capacity is to reach about 36,000
MW.

■

Development of nuclear power plants to help stabilize power supply in the future when local
primary energy sources become depleted; putting the first nuclear power generator in Vietnam
in operation in 2020;

■

Development of power plants using liquidated natural gas (LNG) to diversify fuel sources for
power generation and maintain power and fuel gas security; by 2020, power sources using
LNG to have a capacity of about 2,000 MW;

■

Distribution of power sources: by 2020, the gross capacity of all power plants is expected to
reach about 75,000 MW, including 23.1% of hydropower, 2.4% of pumped-storage
hydroelectricity, 48.0% of coal-fired thermoelectricity, 16.5% of gas-fired thermoelectricity
(with 2.6% of LNG fuel), 5.6% of power generated from renewable energies, 1.3% of nuclear
power and 3.1% of imported electricity. Details are illustrated in the Figure below.

Figure 1.4. Distribution of power sources by 2020
Distribution of power sourcesnăm2020
Cơ cấu Công suất nguồn đến by 2020
Coal-fired
Nhiệt điện
thermoelectricity
than
48%
48.0%

Pumpedstorage
Thủy điện
hydroelectricity
tích năng
2.4%
2.4%

Hydropower
Thủy điện
23.1%
23.1%
Imported
Điện Nhập
electricity
khẩu
3.1%
3.1%

NLTT
Renewable
energies
5.6%
5.6%

Gas-fired
Nhiệt điện
thermoelectricit
khí đốt
y
16.5%
Điện Hạt
Nuclear
16.5%
nhân
power
1.3%
1.3%


13

1.5. Electricity market actors
EVN is owning the majority of power source capacity and controlling the entire process of
power transmission, system operation, distribution and retailing to end-users.
■

In power generation, EVN owns or is holding the control stake of over 70% of the gross
nameplate capacity of the entire system. The remaining is owned by other state-run groups or
large companies such as Vietnam Petroleum Group, Vietnam Coal and Minerals Group, Da
River Co., among others, foreign investors (in BOT, IPP approaches) and local private sector
investors in the IPP format. These power plants sell electricity to EVN under a long-term
power purchase agreement (PPA).

However, in accordance with the approved pathway, the electricity market in Vietnam in the
near future will come into form and develop in three stages:
i) electricity generation market
ii) wholesale electricity market, and
iii) retail electricity market.
The competitive electricity generation market will have a sole buyer. Electricity generating
agencies will sell their capacity through PPAs and competitive offering on the spot market. EVNaffiliated electricity distributors will be formed and restructured as independent business units.
In the foreseeable future (see details in section 1.6 below), the competitive electricity
generation market will run in line with the set pathway. Participants in this market will include:
■

Competitive power generation entities: power plants with rated capacity of over 30 MW
connected to the national grid (except for wind power plants, geothermal power plants);

■

The sole electricity dealer: EVN’s electricity purchase and sales company;

■

Regulator of the electricity system and market: National electricity system regulation center;

■

Provider of power measurement data collection and management services: Information
technology center, Electricity Information and Telecoms Company;

■

Provider of electricity transmission services: National electricity transmission company.

1.6. Roadmap for the competitive electricity market
Pursuant to the Prime Minister’s Decision 26/2006/QĐ-TTg, Jan. 26, 2006, endorsing the
roadmap and conditions for the formation and development of various stages of the electricity market
in Vietnam, the electricity market will be established and developed through three stages.
■

Stage 1 (2005-2014): competitive electricity generation market

■

Stage 2 (2015-2022): competitive wholesale electricity market

■

Stage 3 (after 2022): competitive retail electricity market.
Each stage will comprise of two phases: pilot and full-fledged markets, to be specific:


14

a) Phase 1, stage 1: pilot competitive electricity generation market (2005-2008).
■

A competitive electricity generation market will be developed between different power plants
of Vietnam Electricity Group (EVN) to experiment competition in power generation with one
single buyer. Power plants, electricity transmission companies and electricity distributors
affiliated to EVN will be restructured as independent business units.

■

Independent power producers (IPPs) not affiliated to EVN will continue to sell electricity to
EVN through subscribed long-term power purchase agreements (PPAs).

■

At the end of the piloting phase, major power plants playing key roles in the existing power
system belonging to EVN will be converted to IPPs as independent state-owned companies,
while the remaining plants are converted to independent power producers in the form of jointstock companies to prepare for a full-fledged competitive electricity generation market.

b) Phase 2, stage 1: full-fledged competitive electricity generation market (2009-2014).
■

The electricity generation market will be deemed full-fledged once the preconditions for this
phase are met.

■

IPPs not owned by EVN will be allowed to offer to sell to get a full-fledged competitive
electricity generation market started (with one single buyer). Power generating entities will
sell to the market through PPAs and competitive offers in the spot market in a two-sponged
allocation scheme decided for each entity by the Electricity Regulation Administration.

c) Phase 1, stage 2: pilot competitive wholesale electricity market (2015-2016).
■

The wholesale electricity market will be piloted once the preconditions for this phase are met.

■

A number of distributors and major buyers are selected to pilot a competitive wholesale
electricity market. Some new wholesalers will be formed to promote competition in the sales
and purchase of electricity. Existing electricity transmission companies will be merged to form
a single national electricity transmission company under EVN. Distributors, system operators
and market transaction operators will continue to work under EVN.

d) Phase 2, stage 2: full-fledged competitive wholesale electricity market (2017-2022).
■

The competitive wholesale electricity market will be deemed full-fledged once the
preconditions for this phase are met.

■

Existing EVN-attributed electricity distributors will be converted to independent companies
(state-owned or joint-stock companies) to buy electricity directly from power generating
entities and in turn, power generating entities will also compete to sell electricity to these
buyers. Wholesalers also participate in the competition to sell to distributors and major buyers.

đ) Phase 1, stage 3: pilot competitive retail electricity market (2022-2024).
■

The competitive retail electricity market will be piloted once the preconditions for this phase
are met.

■

A number of distribution grid areas of appropriate sizes will be selected for the pilot. Based on
the consumption level determined by the Electricity Regulation Administration, buyers may
select power suppliers they see fit (electricity retailers). The electricity retailing function of
distributors selected for the experiment will be separated from the distribution grid
management and operation function. Electricity retailers will compete to sell electricity to
individual end-users and buy electricity from wholesalers.

e) Phase 2, stage 3: full-fledged competitive retail electricity market (from 2024).
■

Based on the consumption level determined by the Electricity Regulation Administration,
electricity users nationwide may select power suppliers they see fit (electricity retailers) or buy


15

directly from the electricity market.
■

Entities and individuals meeting the requirements for power supply activities are allowed to
form new electricity retailers to stay competitive in the retailing domain. These retailers may
buy electricity from power generating entities or the electricity market to sell retail to users.

1.7. Electrical grid
The existing electrical power transmission grid in Vietnam is running at 500 kV, 220 kV and
110/66 kV voltages. A 500 kV transmission line links the electrical system of the three regions (North,
Central and South). 220 kV power lines now cover the entire country with a gross length of about
8,500 km (as of 2010) and the total length of the 110/66 kV is about 12,500 km.
General assessments of the development of the electrical grid in Vietnam to 2010 indicate that
while the transmission grid has been extensively developed, only about 50% of the set targets have
been achieved, where only 41% of the 500 kV grid and 50% of the 220 kV grid have been developed.
Causes of the delay include: funding constraints, hindrances in site clearance, increasing material
costs, poor contractors’ capacity and so on.
In the future (2011-2020), the local electrical power transmission grid will be further
developed to meet the needs of:
■

Having a reliable electrical grid for supply and transmission of electrical power and reduction
of power loss in transmission;

■

Connecting electrical centers nationwide into an uniform electrical system;

■

Developing the 220 kV and 110 kV grids to meet transmission needs when different sources
are put in use;

■

Designing an electrical grid scheme with high reserve level and flexibility to supply and
transmit electricity safely and reliably, meeting standard quality requirements (voltage and
frequency).


16

2. Understanding and assessing the biogas energy market in
Vietnam
2.1. Biogas sources in Vietnam
Vietnam is a developing agricultural country, with a sustained high annual average GDP
growth rate (of about 7%) for the last 10 years. Apart from achievements in living conditions and
economic development, Vietnam is encountering various issues of energy supply and environmental
protection amid the current climate change. Wastes and disposed of substances from households and
the processes of industry, agriculture, forestry production are emerging as a pressing concern that
needs a harmonized and urgent response, both at the macro (policies, solutions etc.) and micro
(technology, equipment etc.) levels, to efficiently tackle the sources of waste emission and solve the
problems of pollution, and at the same time generate energy for sustainable development.
One of the technologies that may serve to both aggressively tackle wastes to meet
environmental standards and create energy sources in place of fossil fuels such as coal and oil, and has
been used in Vietnam as far back as in 1960 is the biogas technology.
With a conducive climate and as an agricultural country with high GDP growth, Vietnam has
a very diverse material source for biogas production, from domestic animals’ wastes, human wastes to
wastes from such industries as food, foodstuff and beverages processing. To be specific:

2.1.1. Biogas from domestic animals’ wastes
Domestic animals’ wastes (livestock, poultry excrements) are being used to produce biogas in
Vietnam. The biogas output depends on the number and type of domestic animals and ability to gather
wastes. In Vietnam, domestic animals with large numbers are pigs, cows and bulls, buffalos and
poultry such as chicken, ducks and so on. Other domestic animals like horses, goats, sheep, among
others only take up a small share compared to the afore mentioned animals.
In 2010, there were about 27.4 million pigs, 5.9 million cows and bulls and 2.9 million
buffalos, and some 300 million of various types of poultry.
Every year, the domestic animal herd discharges nearly 100 million of solid wastes, a couple
of hundreds of millions of liquid wastes and multiple millions of gaseous wastes.11 Domestic animals’
waste treatment is therefore receiving growing interest from public regulators, the civil community
and livestock farmers.
The total waste amount is estimated based on empirical data and actual measurement12,
compiled and illustrated in the following Table.

11

The Ministry of Education and Training, Agriculture University No. 1, 2009, “Report at the Workshop on breeding wastes:
status and solutions”, Hanoi, Nov. 26-27, 2009.
12

Energy Institute, 2005, Assessment of biogas energy potentials in Vietnam.


17

Table 2.1. Solid waste from domestic animals, 2010
Livestock & poultry

Number
(million)

Daily discharged waste
amount* (kg/animal/day)

Buffalo

2.9

18-25

Cow and bull

5.9

15-20

Pig

27.4

1.2-4.0

Poultry

300

0.18-0.34

Total
Average

Waste amount
(million tons/year)
19-26
(Average: 22.5)
32-43
(Average: 37.5)
12-40
(Average: 37.5)
19-37
(Average: 28)
82-145
113.5

Source: Statistics Yearbook 2010, (*) Animal Husbandry Administration, Netherlands Development Agency,
Apr. 2007, “Training material ...”, Studying team.

Biogas (with about 60% being methane) from domestic animals’ wastes can be gathered and
used for energy generation with appropriate digester instruments and technology. The potential biogas
sources from domestic animals’ wastes are estimated based on domestic animal data in Table 2.1
above (Statistics Yearbook 2010), and an experimental formula13 compiled and presented in the
following Table.
Table 2.2. Methane amount from domestic animals’ wastes, 2010
Animal
Buffalo
Cow and
bull
Pig
Poultry
Total

Daily gas volume*
(liter of gas/kg of fresh materials)

Biogas output
(million m3/year)

15-32
15-32

335-720
562-1200

40-60
50-60

1500-2250
1400-1680
3797 - 5850

Average biogas
Percentage
output
(%)
(million m3/year)
527.5
10.93
881
18.26
1875
1540
4823.5

38.87
31.94
100

Source: + (*) Animal Husbandry Administration, Netherlands Development Agency, Apr. 2007, “Training
material ...” Studying team (methane takes up 60% of the biogas share).

13

The biogas potentials are reviewed by the methane output that can be generated in a year. The annual potential biogas
output from breeding wastes is calculated using the following formula:
Ki = Si x Ri x Ti x Ci x Hi
where,
Ki – potential biogas output from the ith waste
Si – number of ith livestock headcounts
Ci – Dry matter content (%) of ith material
Hi – gas generation efficiency of ith material based on dry matter content.
Ti – byproducts that can be used for biogas production
Ri – annual manure discharge of a livestock individual. This parameter is identified through surveys or available
data for the area. To estimate the potentials, an assumption used is 100% of input materials are collected. With existing
technology level, up to 75% of input materials are digested and hence, Ti= 75%.
Ci and Hi are data specific to the target area and also verified in laboratories.


18

As seen above, the current volume of animal husbandry waste in Vietnam may serve to create
nearly 5 billion cubic meters of biogas a year if processed by different digesters. Biogas has a calorific
value of about 20MJ/m3 and is a very good fuel for electricity generation or supply of heat for such
internal production purposes as burning and drying in various industrial and agricultural processes or
sales of electricity to the national grid as well as to adjacent household energy users.
2.1.2. Biogas from municipal wastes
In addition to domestic animals’ wastes, biogas can also be collected through urban waste
treatment. Municipal wastes in Vietnam may be grouped in four categories – household, construction,
industrial and medical wastes. Normally, human wastes include those emanating from individual
homes, commercial facilities, offices and market places.
The outstanding human wastes for each city may be calculated using the following formula:
MSW = P × WGR × 365 × 1000
where, MSW is the amount of municipal solid waste (tons/year), P is the city’s population
(people), WGR is the per capita waste generation rate (kg/person/day), 365 is the number of days in a
year, and 1000 is the conversion factor from kilogram to ton.
According to the Vietnam Environmental Development 2004 report, generated waste in 2003
was 12.8 million tons, 50% of which (6.4 million tons) from urban lives. The per capita waste
generation rate is in this case 0.84 kg/person/day, and is expected to be 0.95 kg/person/day by 2010.
Municipal waste volumes in Vietnam’s cities are described in the following Table.

Table 2.3. Municipal waste generation in Vietnam, 2010 (million tons)
2005

City
14

All cities in Vietnam
Hanoi15
HCMC
Haiphong
Da Nang
Can Tho

2010

7.34
1.15
2.37
0.65
0.28
0.37

10.54
2.01
3.15
0.83
0.40
0.44

Municipal wastes may be used to generate electricity by landfill gas collection technologies
(using a landfill to collect biogas as already done in HCMC, at Go Cat dumping ground, with a power
output of 2.4 MW).
As seen in the above Table, by 2010, municipal solid waste accumulated from all Vietnam
cities will be about 10 million tons. The five largest cities in Vietnam (Hanoi, HCMC, Haiphong, Da
Nang and Can Tho) account for 67.6% of that amount (6.7 million tons). Aware of this, in the nearterm future, the government will focus on using these municipal waste sources for electricity
production.16

14

The per capita waste generation rate for all municipal areas was 0.9 kg/person/day in 2005 and 0.95 kg/person/day in 2010.

15

Waste generated in 2010 was attributed to the new Hanoi area.

16

Source: http://www.xaluan.com/modules.php?name=News&file=article&sid=306212, 11th “Southern urban area and
industrial zone environment Conference”, 2011, Nov. 4, 2011, in Binh Duong.


19

It is very difficult to estimate the power output generated from burning methane collected
from landfills, since it depends on the specific technology, landfill techniques used, composition,
physical properties (types and sizes of wastes, water contents and specific weight), and chemical
properties of the wastes (vaporizing composition, fixed carbon content, carbon and nitrogen contents,
calorific value and some other chemical components). Even so, the volume of methane collected from
one ton of waste a year using a normal landfill technology may still be roughly calculated at 15-25
liters of gas/kg of waste a year or 100 tons of waste (with 50%-60% organic matters) may generate 11.5 MWh of electrical power.17

2.1.3. Biogas production from waste treatment processes (solid and liquid wastes) in specific
food, foodstuff and beverage industries
Another considerable useful biogas source is from waste treatment processes in specific food,
foodstuff and beverage industries.
From cassava starch plants: Vietnam cassava production output in 2010 was about 8.5
million tons. About 30% of this amount was processed in major facilities. In recent years, Vietnam’s
cassava processing capacity has seen impressive improvements. A large number of cassava is
processing projects being built and developed. There are now about 60 cassava starch processing
plants of industrial scale in operation with an yearly gross capacity of more than 0.5 million tons of
cassava starch, consuming nearly 2.5 million tons of fresh cassava or 21% of the total cassava output.
This is double the number of plants and three times the capacity from five years ago (see a list of
major plants in Appendix 1).
Cassava processing discharges a huge volume of liquid and solid wastes. Management of
theses wastes is compulsory and must be strictly controlled to uphold environmental standards. To
date, some plants have or are going to install methane collection systems in their production chain.
When this is done, the collected methane gas will be used for generation of energy such as being fuel
for industrial kilns to provide heat for product drying and electricity generation (see more information
on the Intimex project in Thanh Chuong district, Nghe An, Green Field’s project in Quang Nam and
other cassava starch plants in the section below).
From alcohol and beverage factories: Similar to cassava starch processing plants, the
production and brewing of alcohol and beverages discharge a large amount of solid and liquid wastes.
In addition to the imperative requirement for a concentrated waste treatment facility, combined
production of biogas has also been considered by the factories (see more information about beer
breweries in Appendix 2).
From aquatic products (shrimp, fish etc.) processing plants: Enormous liquid and solid
amounts of wastes from aquatic products processing needs to be managed. A number of integrated
aquatic products processing projects adopting the Clean Development Mechanism (CDM) are being
reviewed in aquatic products processing centers in Mekong River Delta provinces, for example the
CDM project for development of aquaculture sewage treatment and biogas collection for electricity
generation (Hoai Nam Hoai Bac Ltd. Co., HCMC, as the owner) was recently commenced on Dec. 24,
2010, at Thuan An 1 aquaculture processing plant in Chau Phu district, An Giang province. This is the
first CDM project in the field in the Mekong River Delta and also the first in 9 aquaculture plant
wastewater treatment and biogas collection for electricity generation projects in An Giang province in
phase I (2011-2012), to be followed in phase II with 12 similar projects in the remaining aquatic
products processing plants in the province. The total power generating capacity from these 21 CDM

17

Source: http://urbanindia.nic.in/publicinfo/swm/chap15.pdf, “Energy Recover from Municipal Solid Waste”


20

projects at aquatic products processing plants in An Giang province is approximately 25 MW, or
equivalent to 1,177,900 tons of carbon (CO2) a year.18 A list of typical aquatic products processing
plants is provided in Appendix 3.
From milk processing plants: This is a similar case to cassava starch plants and aquatic
products processing plants. A list of typical milk producers is given in Appendix 4.
From sugar plants: Sugarcane molasses are produced in sugar plants. One ton of sugarcane
can produce 0.04 tons of molasses. With 9.4 million tons of sugarcane processed in sugar plants in
2005, 0.376 million tons of molasses were produced. In accordance with the master plan for the
sugarcane industry in Vietnam by 2010 and vision to 2020, the gross volume of sugarcane being
processed will increase to 14.7 million tons (105,000 tons of sugarcane a day) by 2010. The amount of
sugarcane molasses produced by sugar plants will be 0.588 million tons at that time. A list of typical
sugar producers is provided in Appendix 5.
A biogas energy market in Vietnam in the near future is apparently feasible in some key areas
discussed above, with varying technologies and scales. Below is a summary of biogas energy from
wastes potentials in Vietnams.19

18
Source: http://hoainamhoaibac.com/Dich-Vu/Du-an-Xu-Ly-Nuoc-Thai-Thuy-San-Thu-Hoi-Biogas-Theo-Co-Che-PhatTrien-Sach-CDM.html
19

The biogas potentials are estimated based on assessments of the potential annual biogas output. The annual potential biogas
output from various types of input materials is calculated using the following general formula: Ki = Si x Ri x Ti x Ci x Hi;
where:
i – ith input material
Ki – potential biogas output from ith material
Si – number of livestock headcounts or annual amount of ith waste
Ri – the ratio between byproducts and main products of ith material
Ci – dry matter content ith material
Hi – gas generation efficiency of ith material based on dry matter content.
Ti – byproducts that can be used for biogas production
For human, animal and poultry feces, Ri is the amount of excrement an individual discharges in a year.
Ti is a parameter identified based on survey of different uses of a specific byproduct, e.g. as fuel, animal feed,
manure etc. In addition, it also depends on transport, storage and technology conditions. To estimate the potentials, an
assumption used is 100% of input materials are collected. With existing technology level, up to 75% of input materials are
digested and hence, Ti= 75%.
Ci and Hi are data specific to the target area and also verified in laboratories (conducted by the Energy Institute).


21

Table 2.4. Theoretical gross biogas potentials, 2010
Potential
(million m3)
1. Wastes from food and food crop processing20
- Cassava starch processing
314.3
- Beverage production
95.6
- Aquaculture processing
314.3
- Milk, sugar and other foods
345.9
processing
Subtotal 1
1070.1
2. From domestic animals’ wastes
- Buffalo
527.5
- Cow and bull
881
- Pig
1875
- Poultry
1540
Subtotal 2
4823.5
3. From municipal wastes
1675.0
TOTAL (1+2+3)
7568.6
Material source

Tons of oil equivalent
(million toe)

Percentage
(%)

0.53505

14.1

2.41175
0.8375
3.7843

63.7
22.1
100.0

Of the overall collectible biogas potentials, biogas output from domestic animals’ wastes has
the highest share, at about 63.7%, followed by municipal wastes at 22.1%, and about 15% of the
remaining from the processing industry.
Farm-based agricultural production has been recently taking shape and developed as the
animal husbandry farms are growing in number and the environment concern has become more
pressing. The question is how the production pattern can be modified to allow both development of
farming and best use of local available material sources, without hurting the environment. In industrial
scale animal husbandry farms, waste treatment using a biogas system is a good option.
In addition to using different biogas technologies in domestic animals’ waste treatment, this
technology also has a clear potential in municipal waste treatment (primarily in major cities like
Hanoi, HCMC, Da Nang, Can Tho, Haiphong etc.), waste treatment in aquatic products processing,
animal feed production, sugar making, cassava starch production, food and beverage production and
others. These are also potential areas for use of methane collection technology in waste treatment at
medium, large and mega industrial scales.
Of course, to develop biogas technologies, apart from the availability of technology and
businesses’ needs (meeting the requirements on emission to the surrounding environment), a very
important factor to take into consideration is the markets for the products (electricity, heat, greenhouse
gas abatement certificates). For the time being, the government and relevant ministries have been
working out strategies and policies to promote green development, low-carbon technologies and in
particular, finalizing a framework pathway for the development of renewable energy in Vietnam in the
near future.
As discussed above, in light of increasing energy demand in Vietnam and limited local energy
supply capacity (coal for electricity production likely to be imported from after 2015), whereas the
potential for biogas sources in Vietnam is enormous, coupled with very high demand for electrical

20

Rough estimates only, since no official data or controlled tests were available or done.


22

power and heat for production, the opportunity of using available biogas resources for electricity
generation and co-generation (CHP) is very real, both in terms of technology and economic and
environmental considerations. In such context, the Prime Minister Decision 1208, approving the 7th
master scheme for electricity development (2011-2020, vision to 2030) will be the foundation for
biomass/biogas energy development in Vietnam. A plan associated with biogas development is being
drafted with goals and schedules summarized in the following table.

Table 2.5. Summary of expected electricity generation capacity from biogas and municipal
wastes to be added to the grid (MW)21
2011-2020
Total renewable energy
Municipal wastes (landfill and direct incineration
technologies) + other biogas
Biomass (solid)
Other renewable energies

2021-2030

2011-2030

3,606

9,588

13,194

174
355
3,077

265
1,500
7,823

439
1,855
10,900

2.2. Use of biogas in Vietnam
Biogas technologies were first used in Vietnam in early years of the 1960s. The development
process of biogas and its application may be summarized as below:
■

■

Phase II (1976-1980): after 1975, biogas regained attention in light of the mineral oil crisis and
social development needs. The Energy Institute, Ministry of Electricity and Coal, was asked to
initiate the “Use of biogas in Vietnam” project, and later in 1977, the project for “Research
and development of methane fermentation tanks”. Ever since, biogas was made a formal part
of the national research agenda. In addition to the Energy Institute, some other research
institutions have also been interested in biogas, including the Soil and Fertilizers Research
Institute, Animal Husbandry Institute, HCMC Agriculture and Forestry University, Can Tho
University, among others.

■

Phase III (1981-1990): through two 5-year plans of 1981-1985 and 1986-1990, biogas was a
regular top priority in a new national energy program, which was Program 52C, under the
auspices of the Ministry of Higher Education. Many biogas studies were very successful and
more agencies and universities joined the research along with the Energy Institute. Major
projects were found in Ho Chi Minh City with 700 projects, Dong Nai with 468 projects, Hau
Giang with 240 projects, as there were about 2,000 small sized facilities of 2-10 m3 and a few
larger facilities of 100-200 m3 volume using normal and simple anaerobic fermentation
technology.

■

21

First phase (phase I), 1960-1975: primitive stage, mostly research for adaptability and
applicability; the results however were less than expected. Some tiny scale facilities were
built, scattering in various provinces, with little efficiency. By early 1970, research was almost
forgotten.

Phase IV (1991-2002): when Program 52C was terminated, no national focal agencies seemed

N.D. Cuong, 2011, Energy Institute, proposal of “Master plan for renewable energy development in Vietnam by 2020 and
vision to 2030”.


23

to pay attention to biogas. The Energy Institute continued its own researches as part of
ministerial and corporate level projects. The researches mostly focused on improvement of
type NL-5 fixed dome cover facilities, experiment of a number of new models, the digestion
process of plant materials, diversifying use of gases and so on. In this period, biogas strongly
developed in rural water and sanitation projects, gardening programs etc. In March 2002, the
Ministry of Agriculture and Rural Development released industry grade standards for small
sized biogas projects.
■

Phase V (2003 to present): this is the time of strongest biogas development in all areas of
agriculture, industry and urban contexts, and with all sizes from small to medium and large.
The Energy Institute is still the lead agency in biogas research and development. By far, there
have been over 200,000 projects under construction, 60% of which using the Energy
Institute’s model, followed by other models from Can Tho University, HCMC Agriculture and
Forestry University and others. These are however all small-sized biogas projects, mostly
suitable for households raising pigs. The size of biogas digester varies within 5-25 m3.

As for medium and larger sized biogas projects, there are now two main demonstrated
technologies: UASB systems and covered anaerobic ponds. Application however remains small scaled
and little.
A survey on users of biogas22 indicates two key purposes of using biogas: (i) for heating (with
dominantly over 90% of produced biogas), and (ii) for electricity generation based on internal
combustion generators available in the market with modified carburetors. Only one single large sized
power generating facility of 2.4 MW was installed in Go Cat dumping ground.
Heating use includes household cooking, lighting and sometimes keeping warm. Biogas usage
is illustrated in the following Figure.

22

Energy Institute, 2005, and T. V. Dung, H. V. Hung et al, 2007-2008, Biogas user survey.


24

Figure 2.1. Current uses of biogas

Biogas

Small-sized power
generation

Heating

Cooking

Lighting

Biogas-fired
generator

Keeping
warm

(i) Use of biogas for heating
Cooking is the most common form of biogas use for heating. Biogas cookers are made locally
or imported from China. A few biogas development companies or LPG cooker dealers import spare
parts from China or LPG cooker manufacturers to build modified biogas cookers.
Experiments show that locally made single stoves consume 0.22-0.40 m3 of biogas per hour
while twin imported or modified LPG-based cookers consumes about 0.30-0.70 m3 of biogas per hour.
The per capita household need of gas, given the long tradition of cooking and other daily uses of rural
dwellers in Vietnam, is estimated at about 0.15-0.30 m3 of biogas/person/day. A 6-member household
therefore needs at least 0.9-1.8 m3 of biogas a day and hence a facility of 5 m3 and above capacity and
a livestock herd of 6-10 pigs or 2 buffalos or cows (see details in the Table below).

Table 2.6. Gas consumption by system size23
Unit: m3 biogas/m3 of system size

System size
Biogas use
Consumption

≤5

> 5-10
0.19

>10-15
0.10

>15
0.15

0.80

Source: Energy Institute, Biogas user survey, 2005.

The second biogas heat use is for lighting using network lamps. These network lamps are
imported from China and consume about 0.07-0.10 m3 of biogas per hour. Network lamps also require
a minimum gas pressure of a 200-700 mm water column; the higher the pressure the brighter the
lamps. Households using biogas for lighting are still few in numbers, accounting for only about 2% of
the households having biogas installations (by Biogas user survey report, 2005, Energy Institute). Low
use of biogas for lighting may be explained by the availability of grid power and lamps imported from

23

“Biogas user survey” report, 2005, Energy Institute.


25

China often have poor quality. Lamp spare parts such as mantles, honeycomb filters and so on are not
readily available in the market.
Figure 2.2. Biogas lamp (illustration)

Other uses in heating include boiling water sing China imported water heaters or modified
LPG cookers. This use is also very low, at less than 1%. Use of biogas for business and household
production purposes such as animal husbandry, handicraft and processing is not yet common since the
gas supply from small sized facilities is often only enough for cooking, and for production purposes,
facilities of larger sizes will be needed depending on types of use and gas consumption. Also
according to the Biogas user survey 2005 of the Energy Institute, biogas use for production purposes
like making pig feed, rice noodle and pancakes in rural areas takes up about 6% of all uses by
households having a biogas facility.
Some other biogas uses such as for keeping piglets, small chickens warm in winter, running
freezers, maintenance of fruits and cereals, and incubating poultry eggs have only been restricted to
research, experiment or demonstration, and not yet replicated.
(ii) Use of biogas for electricity generation
Use of biogas for electricity generation has been in existence in recent years, though still at
small scales.
The Energy Institute, HCMC Technology University and Da Nang Technology University are
some of the most successful names in building small sized biogas-fired generators of 0.5-20 kW.
These researching efforts however have been just limited to modification of gasoline or diesel-fueled
4-stroke engines for biogas compatibility, and not creation of machines running directly on biogas.
The advantage of modified engines is reasonable costs, not too sophisticated modification and
installation, and users’ familiarity with these machines from previous uses. The weakness of these
machines is that they do not have a gas filter while biogas is a mixture of steam saturated gases and
such gases as H2S and NOx may easily combine with water to turn into acids causing corrosion to
metal parts of the generators, reducing the equipment’s life longevity. The efficiency of these
machines is also not very high (20%-25%), and they need gas bags to stabilize gas pressure while in
operation.


26

While the biogas supply is available, use of biogas for electricity generation at household scale
remains very low, with only about 500 out of a total of 200,000 biogas facilities installed. Below are
some biogas-based models for farm-scale power generators in Southern provinces.
A farm-scale biogas generator has five key components: 1) the biogas facility, 2) gas filter
system, 3) gas bag to stabilize gas pressure while the generator is running, 4) generator, and 5) control
system.
Biogas generated in the biogas forming instrument is routed through a filter to remove
unwanted gases before the cleaned gas is led to the pressure stabilizing gas bag and subsequently the
generator.
Figure 2.3. Biogas-fired power generating system

Studies by the Energy Institute indicate that gasoline or diesel-fired 4-stroke engines can all be
modified to run on biogas. A gasoline generator modified to run on biogas or as a hybrid unit
consumes 0.6-0.7 m3 of biogas for 1 kWh or power generated. Capacity need of a farm is often 8-20
kW. The most common power generators today are those within the capacity range of 2.2-20 KW and
capable of running 6-10 hours a day. Therefore, biogas instruments of 30-200 m3 capacity or higher
will be suitable for power generation. As the electrical power generated by biogas-based machines are
alternating currents, it can be connected directly to the distribution system of the regular power grid or
used in an independent distribution system.


27

Box 1. Use of biogas highly efficient for breeders24
Use of biogas energy: As part of events in the lead up to the World Intellectual Property Day
this year, Dong Nai Department of Science and Technology visited the model biogas energy facility
using pig manure at Mr. Pham Van Ngu’s Dong Tam ranch (Bach Lam 1 village, Gia Tan 2 commune,
Thong Nhat district). Ngu told the visitors that he used biogas to run a generator and thus saved up to
VND 7-8 million a month of electricity bill for the farm, while also having sufficient, if not abundant,
heat for other uses. More important, this helps prevent pollution since it absorbs the massive amount
of pig manure generated in the ranch.
The biogas system operator at Dong Tam ranch described the process as follows: “When the
biogas tank is filled with pig manure, gases are created from the pig manure in a anaerobic
environment and are led into two vinyl containers, each 10 meters in length and 1.5 meters in
diameter. A modified diesel-fired engine, with the injection nozzle replaced with a spark plug and the
air filter replaced with a carburetor (where the biogas fills up before being injected to the combustion
chamber). When the engine is started, a 12 V battery activates the IC unit, which creates electricity for
the spark plug to ignite and burn the biogas inside the combustion chamber, moving the piston nonstop. When the running engine is hooked up with an alternator, the more the valve is open, the more
biogas will flow in, powering up the engine and generating up to a 220 V electrical current. As this is a
diesel type engine, it needs a liquid cooling system while it runs.”
Ngu added that using biogas is not only environment-friendly and cost-efficient but also gives
him more freedom in household and production activities.
With his 2,000-plus pig count ranch, Ngu is among the pioneers in using biogas for electricity
generation in Dong Nai province.

2.3. Overview of biogas projects in Vietnam
Based on the sizes in capacity of biogas equipment and users, on-going biogas projects in
Vietnam may be grouped in two categories: (i) small sized, fit for breeding households, and (ii)
medium and large sized, fit for concentrated pig farm and production waste treatment. Current sizebased classification often focuses on the volume of the digester tank. By the Ministry of Agriculture
and Rural Development’s standard 10 TCN 97 ÷ 102:2006, for small sized biogas instruments, only
biogas systems with digester tank volume of ≤ 40 m3 are accounted for. Below is some reference
information on how biogas systems are classified in China or recommendations of some local
prestigious institutions in terms of biogas technology.

24

Source: dongnai.gov.vn


28

Table 2.7. Classification of biogas systems as recommended by local prestigious institutions in
terms of biogas technology

Biogas component, QSEAP
project

Volume of one
tank (m3)

≥ 1000

≥ 500

Medium

100 - 1000

100 - 500

< 100

< 100

Large

≥ 100

≥ 100

Small (household)

< 10
0

< 100

Large

> 1000

Medium

> 50 ≤ 1000

Small (household)

Biogas Technology Center
(BTC)

Total volume (m3)

Small (household)

China

Size
Large

Origin

≤ 50

If classified as above mentioned, biogas projects in Vietnam with updated status to date may
be described as follows (section 2.3.1).

2.3.1. Small sized – household biogas projects
The project supporting the biogas program for animal husbandry in Vietnam started in 2003.
This is the largest scale and coverage in the field, with financial support from the Netherlands
government and the Animal Husbandry Administration, Ministry of Agriculture and Rural
Development as the focal agency. The project has two stages. In Stage I, the project is underway in 12
selected provinces aiming to build 12,000 small-household biogas systems with input materials of
animal husbandry wastes (pig manure). The technology used in this project includes fixed dome cover
biogas systems, KT1 and KT2 models (see Figure 2.4 below).
Figure 2.4. KT 1 and KT2 models25

KT1 model

25

1. Inlet tank, 2. Inlet hose, 3. Digester tank, 4. Gas collecting hose, 5. Outlet hose, 6. Pressure regulator tank.


29

KT2 model
At the end of phase I in 2005, 18,000 systems were built. In the transitional period in 2006, the
project coverage was expanded to 20 provinces and 9,600 more systems were developed, raising the
total to 27,600 facilities. The total project investment is USD 9,194,076, including 57.3% of
beneficiary contribution, 39.2% of ODA fund and 3.5% of provincial level counterpart fund. The
project has been successful owing to two essential factors: (i) management, and (ii) quality assured
construction work for every system. The project has a central office based in Hanoi and 20 provincial
offices in participating provinces.
Phase II continued from 2006 to the end of 2011. The overall goal of the project in this phase
is to develop a sustainable, market-oriented biogas sector. Project objectives include:
■

Existence in 50 out of 64 province and cities in the country;

■

Development of about 150,000 biogas systems.

In addition to this biogas project applicable to breeding households as mentioned above, there
are also some parallel projects of similar nature but with smaller scales (mostly focusing on specific
locations such as districts, communes or residential areas). These projects are also often public private
partnerships, meaning a part of the cost is covered by public or corporate funding (mostly in terms of
technology, training and technical transfer, with some material and supply support, about 305-50%),
and the remaining to be covered by household pocket money. Apart from the funding from relevant
ministries and agencies, these efforts are mostly supported through target programs or annual
researches of the line agencies, such as the Ministry of Industry and Trade’s national target program
for energy saving and efficiency, the Ministry of Agriculture and Rural Development’s water and
sanitation program, among others.

2.3.2. Medium and large sized biogas projects
There are currently about 20 completed, on-going or planned for medium to large sized
projects for biogas collection from waste treatment (in animal husbandry, forestry-agricultureaquaculture production etc.). Information about some of these projects has been recently mustered and
summarized in the following section and Table 2.8.
Green Field Joint-stock Co. based in Quang Nam province has engaged in a project to produce
65% of methane gas from the waste treatment process of the biofuel workshop (making ethanol from
cassava) with a capacity of 100,000-120,000 m3 a day, to collect methane for electricity generation.
The project cost is estimated at about USD 5.3 million (not including equipment transportation cost).
Recently, to alleviate serious pollution from the stench of wastewater, FOCOCEV Cassava
Starch Joint-stock Co. (Hinh River district, Phu Yen province) resorted to the anaerobic wastewater
treatment technology. In the process, organic matters digested by microorganisms help reduce


30

pollution while creating biogas. This biogas is recovered and burned in boilers in place of the plant’s
anthracite coal energy supply.
Methane collection for electricity generation in aquaculture production is an approach being
aimed at by Clean Development Mechanism (CDM) investors. The CDM biogas collection from
aquaculture production wastewater treatment project initiated by the HCMC-based Hoai Nam Hoai
Bac Ltd. Co. commenced on Dec. 24, 2010 at Thuan An 1 Aquatic Products Processing Plant, Chau
Phu District, An Giang province. This is the first CDM project in the field in the Mekong River Delta,
and also the first of 9 wastewater treatment projects in different aquaculture plants in the area for
electricity generating biogas collection in An Giang province (phase 1 expected to commence from
2011), with a phase 2 consisting of 12 similar projects in the remaining aquaculture plants in the
province. The estimated gross power capacity from the 21 CDM projects in aquaculture plant in An
Giang province is about 25 MW, equivalent to a cut-down of 1,177,900 tons of carbon (CO2) a year.
The German national electricity group also promised to buy all Certified Emission Reductions (CERs)
these CDM projects obtain from aquatic waste treatment in An Giang province once the power
generating systems are in operation.26
Also in An Giang province, there is another CDM project for pig farm wastewater treatment
(each farm with 50 pigs or more), for a total of 37 farms and a pig herd of nearly 6,000 individuals.
Each of these farms is a sub-project that collects gas from pig breeding wastes for heating fuels and
electricity generation used right in the farm. The Swedish Energy Institute supported the project,
pledging to buy CERs from the project at the initial ask price of USD 10/ton of CO2. The project cost
is about VND 150 billion from An Giang provincial PC, Hoai Nam Hoai Bac Ltd. Co. and Swedish
Energy Institute. The generated energy in the form of biogas will be used as fuel and provided free of
charge to farm owners, and the electricity generated from the biogas will be sold to farm owners at
lower prices than EVN’s levels. The project is estimated to cut 37,000 tons of CO2 emission a year and
produce a power capacity of 14,500 kWh a day.
In addition to CDM projects in aquaculture, there is another CDM project in An Giang using
the Low temperature conversion (LTC) waste treatment technology. The 25 MW capacity power plant
uses input materials being human waste of about 300 tons a day, with CO2 volume equivalent to
aquatic CDM projects in the province. The project is expected to commence after 2012 and, following
two years of construction, start operation to effectively solve the waste puzzle in Chau Doc, Chau Phu
and Tinh Bien areas of An Giang province. The project has a total investment fund of about USD 200
million, or VND 3,926 billion. It is financed by the German MBM financial group and counterpart
fund from Hoai Nam Hoai Bac Ltd. Co. (HCMC), as a co-owner of the project. The German national
electricity group has also agreed to buy the entire CERs acquired by this project.

26

Source: This information is readily available in various websites in Vietnam.


31

Table 2.8. Medium and large sized biogas projects
Area of
operation
Livestock
and poultry
breeding

Capacity

1. Thai Duong Imported
Pig Breed JS Co.
Location: Đô Lương, Nghệ
an
2. Pig farm
Location: Yên bình
Lương Sơn, Hoà bình

Processing 150,000
m3 of wastewater a
day to collect
methane
Processing 1,500 m3
of wastewater a day
to collect methane

3. Pig farm
Location: Đan hoài
Location: Đan phượng,
Hanoi
4. Co Dong, Son Tay
Animal Husbandry services
cooperative
Location: Co Dong, Son
Tay, Hanoi
Cassava
processing

Company, location

Processing 150 m3
of wastewater a day
to collect methane

5. Phu Tho cassava starch
plant
Location: Phú thọ

Processing 4,000
m3, 3,000 m3, 2,000
m3, 750 m3 and 800
m3 of wastewater a
day to collect
methane
Processing 15,000
m3 of wastewater a
day to collect
methane

Technology
used
Covered lagoon

Estimated
time
2007

Covered lagoon

2007

Prefabricated
composite
dome tank,
KT3-1 model
Covered lagoon

2007

2008-2010

Covered lagoon

2009

6. Cassava starch plant;
Location: Tinh Phong IP,
Agroproduct and Food JS
Co.
Quảng Ngãi

Upflow
anaerobic
sludge blanket
digestion
(UASB)

2009

7. Dung Quat alcoholbiogas plant
Location: Dung Quat IP,
Quang Ngai

Sugar
production

Processing 3,500 m3
of wastewater a day
to collect methane

Processing 300,000
m3 of wastewater a
day;
Estimated gas
output: 80,00090,000m3 of
biogas/day
Processing 900 m3
of wastewater a day
to collect methane

EGSB

7/2011

Upflow
anaerobic
sludge blanket
digestion
(UASB)
combined with
Structured
media attached
growth
(SMAG)

2003

8. Alcohol plant, Lam Son
Sugarcane Co.
Location: Lam sơn, Thanh
hoá


Aquatic
production

9. CDM methane collection
from wastewater treatment
project at Thuan An 1
aquaculture plant, Chau
Phu dist., An Giang prov.

Processing 100,000
m3 of wastewater a
day;
Estimated gas
output: 25,000m3 of
biogas/day

Alcohol
production

10. South East Asia Beer
Brewery
Location: Hanoi

Processing 600 m3
of wastewater a day
to collect methane
600m3/day

11. Alcohol and liquor
factory
Location: Bình định.

Processing 360 m3
of wastewater a day
to collect methane

12. Go Cat waste-to-energy
power plant
Location: Ho Chi Minh
City

Estimated gas
output: 410m3 of
biogas/day Installed
capacity: 3
generators of 2.4
MW capacity
Installed capacity:
3.5 MW

Municipal
waste

13. Nam Son waste-toenergy power plant
Location: Hanoi
14. Dong Thach waste-toenergy power plant
City
15. Phuoc Hiep 1 waste-toenergy power plant
City
16. Da Mai Tan waste-toenergy power plant
Location: Thai Nguyen
City

Capacity: 8 mil. of
wastes/year
Power output:
28,000 MWh/year
Power output:
14,000 MWh/year

Capacity: 450,000
tons of waste;
Power output: 1,360
MWh/year

32

Upflow
anaerobic
sludge blanket
digestion
(UASB)
combined with
Structured
media attached
growth
(SMAG)
Upflow
anaerobic
sludge blanket
digestion
(UASB)
Upflow
anaerobic
sludge blanket
digestion
(UASB)
HDPE
canvasing and
gas collection
piping

HDPE
canvasing and
gas collection
piping
HDPE
canvasing and
gas collection
piping
HDPE
canvasing and
gas collection
piping
HDPE
canvasing and
gas collection
piping

2010

2003

2009

2007

2009

2009

2009

2009


17. Trang Cat waste-toenergy power plant
Location: Haiphong City

Capacity: 1,1 tons of
waste;
Power output: 2,800
MWh/year

18. Thuy Phuong waste-toenergy power plant
Location: Hue City

Capacity: 540,000
tons of waste;
Power output: 1,630
MWh/year

19. Khanh Son waste-toenergy power plant
Location: Da Nang City

Capacity: 1,4 tons of
waste;
Power output:
3,200 MWh/year

33

Technology:
HDPE
canvasing and
gas collection
piping
Technology:
HDPE
canvasing and
gas collection
piping
Technology:
HDPE
canvasing and
gas collection
piping

2010

2009

2010

2.4. Information about partnership in biogas development between Vietnam and
foreign parties
There are currently three forms of partnership in the field of biogas in Vietnam:
(i) Government and foreign organization funding for demonstration projects or policy making
and market promotion;
(ii) taking part in waste treatment methane collection projects; and
(iii) provision of equipment and technology.
2.4.1. Government and foreign organization funding for demonstration projects or policy
making and market promotion;
■

Biogas development project supported by the Asian Development Bank (ADB). The Ministry
of Agriculture and Rural Development is the local stakeholder.

This project aims to improve the quality and safety of agricultural products and promote
biogas development (QSEAP for short) and will be implemented in 16 provinces and cities and ended
by June 2015.27
This project is part of a USD 95 million loan agreement out of a total project investment
capital of over USD 110.4 million.
The purpose of the project is to increase the safety and quality of agricultural commercial
products from Vietnam, while providing a clean energy source in place of fossil energy through the
development of biogas.
The project is scheduled for 2009-2015 in the three major cities of Ho Chi Minh, Hanoi and
Da Nang and 13 provinces with the largest share of vegetables, fruits and tea in the country, including
Bac Giang, Ben Tre, Binh Thuan, Hai Duong, Lam Dong, Ninh Thuan, Phu Tho, Son La, Thai
Nguyen, Tien Giang, Vinh Phuc and Yen Bai.
The project has four components: Development of the regulatory framework and
establishment of a working safety and quality control system for agricultural products; upgrade of

27

Based on the Government’s website, Dec. 2, 2009.


34

infrastructure and equipment to support safety and quality control of agricultural products; mitigation
of animal husbandry waste through development of biogas and improvement of project management.
In addition, to support project management and the development of the biogas program, ADB
also provides technical assistance for the project worth USD 1.5 million.
The QSEAP project has also been planned to be integrated in phase 2 of the “Science and
Technology project” (AST) under a new title called “Low Carbon Agriculture Support project
(LCASP)”. This idea was raised by ADB in the discussion with the Ministry of Agriculture and Rural
Development in March 2011 and was accepted by the latter in August 2011.
The newly proposed project has three major focuses. First, LCASP does not concentrate on
household scale biogas systems but instead on more professional and advanced biogas systems for
medium and large sized animal husbandry farms in Vietnam.
Second, biogas projects are only viewed as an integrated part of a comprehensive breeding
waste management system.
Third, the proposed project will focus on capacity building at all levels to create sustainability
for subsequent expansion of the approach elsewhere.
■

“Biogas program for the animal husbandry sector” support project

This project was initiated by the Netherlands government and the local key stakeholder was
the Animal Husbandry Administration of the Ministry of Agriculture and Rural Development. Started
in 2003, the project was implemented in two phases.
■

At the end of phase I in 2005, 18,000 systems were built.

■

Phase II continued from 2006 to the end of 2011. The overall goal of the project in this phase
is to develop a sustainable, market-oriented biogas sector. Project objectives include:

■

Existence in 50 out of 64 province and cities in the country;

■

Development of about 150,000 biogas systems.

The total project investment is USD 9,194,076, including 57.3% of beneficiary contribution,
39.2% of ODA fund and 3.5% of provincial level counterpart fund.
The project has a central office based in Hanoi and 20 provincial offices in participating
provinces.
By far, this is the largest household biogas development initiative in Vietnam.
■

Livestock waste management project:

The Livestock waste management in East Asia project (LWMEA) is supported by the Global
Environment Fund (GEF) through the World Bank (WB). In Vietnam, LWMEA is implemented by
the Institute of Natural Resources and Environment Strategy and Policy, Ministry of Natural
Resources and Environment.
The project aims to support participating countries to collectively work to alleviate the adverse
effects on the environment and human health of water source pollution from animal husbandry. This is
especially the case as such effects are increasing fast in concentrated breeding areas near water
sources. The benefits on the global environment that the project helps create is reduction of soil and
environment pollution in littoral areas.
External support is distributed among three key components:
■

Development and dissemination of methane mitigating technologies and practices:
(i) identifying and developing practices and technologies to effectively reduce methane
emission applicable to livestock waste management in ranches located in the project areas;


35

(ii) sharing these practices and technologies to other stakeholders, policy makers, experts, the
private sector, producers and service providers;
■

Review
of
policies
on
renewable
energy
and
market
development:
(i) conducting targeted studies to identify existing hindrances marketing products made with
greenhouse
gas
alleviation
technologies;
(ii) conducting policy review at the national and sub-national levels, to develop policies
promoting commercial use of biogas energy;

■

Awareness education campaign targeting local residents; training and support fund
management:
(i) workshops with the participation of key stakeholders to disseminate study findings on
renewable energy and renewable energy market development; promote coordination between
government agencies responsible for livestock waste management and cut down greenhouse
gas
discharge;
(ii) provide training and workshops for pig farm owners in the project areas; and (iii) develop
software, publications and other forms of experience sharing to be used in education and
awareness campaigns.

In Vietnam, the LWMEA project was underway from September 2006, with the Resources
and Environment Strategy and Policy Institute, Ministry of Natural Resources and Environment, as the
key implementer. The project aims to mitigate the adverse effects on the environment and human
health, which are increasing fast in concentrated breeding areas near water sources. In addition, it also
has a broader purpose of cutting soil pollution and environmental depreciation in the China Sea and
Thailand Bay. As part of its broad activities, LWMEA assists the development of demonstration
practices in livestock waste management and awareness raising for the community on environmental
protection in animal husbandry.
In the last few years, LWMEA supported the development of 3 model biogas tanks (of
community and household scales) for livestock waste management in Tu Duong village, To Hieu
commune, Thuong Tin district, Hanoi (former Ha Tay province). In addition to environmental
improvement and alleviation of the damaging effects of waste to the environment and human health,
these systems also provide fuel gas for cooking, lighting and electricity generation. The project also
delivers multiple training and education activities to raise public awareness on environmental
protection in livestock breeding.
■

Project to introduce medium sized plug flow digester equipment to the biogas market in
Vietnam, financed by the Finish Ministry of Foreign Affairs and Nordic Development Fund.

The project “Introducing medium-sized plug flow digester equipment to the biogas market in
Vietnam” is part of the Energy & Environment Partnerships (EEP-Mekong) program. The project is
scheduled for 2009-2012 with financial support from the Finish Ministry of Foreign Affairs and
Nordic Development Fund. The key purpose of the project is to plan and develop the market in
Vietnam for medium-sized plug flow digester equipment for biogas collection through the
introduction, demonstration and presentation of economic efficiency of 10 sample systems in 10 pig
farms in Vietnam.
The project involves four partners, the Netherlands’ SNV, Energy Institute, Stockholm
Environment Institute (SEI) and Global Energy Consultancy Investment and Trading Company
(GECI).
Expected outputs include:
■

10 medium-sized digester systems to be designed and built to collect methane for reduction of


36

greenhouse gas emission;
■

Training materials developed;

■

Efficiency assessments made;

■

Use of biogas and wastes from the digestion process optimized.

The total support fund is 286,000 Euros, including 191,500 Euros from EEP and the
remaining from the four other stakeholders (exclusive of contributions from the pig farms for building
digester equipment). The project life cycle is 18 months, starting from June 2011.

2.4.2. Partnership type (ii) taking part in waste treatment methane collection projects; and (iii)
provision of equipment and technology.
In this form of partnership, international stakeholders will directly or indirectly get involved in the
development of the project (prefeasibility) study, project (feasibility) outline and/or provision of
equipment. Unfortunately, detailed information about specific types of partnership and company
names are not readily available.
Below is some background information about business cooperation in waste management for biogas
collection to produce energy.
Table 2.9. Projects with a foreign partner in medium and large sized biogas collection
Company, location
1. Thai Duong Imported Pig
Breed JS Co.
Location: Đô Lương, Nghệ
an
2. Cassava starch plant;
Location: Tinh Phong IP,
Agroproduct and Food JS
Co.
Quảng Ngãi
3. Dung Quat alcohol-biogas
plant
Location: Dung Quat IP,
Quang Ngai
4. Alcohol plant, Lam Son
Sugarcane Co.
Location: Lam Sơn, Thanh
Hoá

Capacity
150,000 m3 of wastewater a
day

Technology used
Covered lagoon

Partner
Thailand –
Vietnam

day

Upflow anaerobic sludge
blanket digestion (UASB)

Vietnam Thailand

day
Estimated gas output:
80,000-90,000m3 of
biogas/day
900 m3/day

EGSB

Vietnam China

combined with Structured
media attached growth
(SMAG)

2003,
Vietnam India

5. Alcohol and liquor factory
Location: Bình định.

360 m3 of wastewater a
day

Partner:
China

6. Go Cat waste-to-energy
power plant
Location: Ho Chi Minh City

Estimated gas output: 410
m3 of biogas/day Installed
capacity: 3 generators of
2.4 MW capacity

HDPE canvasing and gas
collection piping

Partner:
the
Netherlands

7. Nam Son waste-to-energy
power plant
Location: Hanoi

Installed capacity: 3.5 MW

HDPE canvasing and gas
collection piping

Partner:
Japan

Giz2013 en-exploring-biogas-market-opportunities-vietnam

Giz2013 en-exploring-biogas-market-opportunities-vietnam

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Giz2013 en-exploring-biogas-market-opportunities-vietnam

Similar to Giz2013 en-exploring-biogas-market-opportunities-vietnam (20)

More from Tuong Do

More from Tuong Do (20)

Recently uploaded

Recently uploaded (20)

Giz2013 en-exploring-biogas-market-opportunities-vietnam