1. The Potential of Biogas and Biomass from Agriculture and
Agro-Industry for Power and Heat Generation in Vietnam
INFORMATION WORKSHOP
“ENERGY FROM BIOMASS AND BIOGAS IN VIETNAM
Berlin, 27 June 2013
Mr. Nguyen Duc Cuong
Center for Renewable Energy and CDM
Institute of Energy-Ministry of Industry and Trade, Vietnam

2. Contents
1
2
3
• Status quo for Biogas and Biomass sector in Vietnam
• Case studies of Biogas and Biomass
• Summary and conclusion
BIOMASS/BIOGAS
FOR
ENERGY

3. 1. Status quo for Biogas and Biomass sector in Vietnam
Number of systems installed: Biomass
 Forty (40) bagasse cogeneration systems
installed in 40 sugar mills.
Total installed capacity: 150MWe
Range of capacity: from 1 to 25MWe
 Five cogen systems selling extra electricity to
national grid at average price of
4UScents/kWh.
 15-20 existing cogen systems have plan to
expand power capacity (installing new boiler,
turbine and generator for power generation)

4. 1. Status quo for Biogas and Biomass sector in Vietnam
Number of systems installed: Biomass
 Existing: one rice husk fired power plant
in the first phase installed one boiler and
selling steam in industrial zone at price of 2530USD/ton (7 bar –saturated steam).
 Ten (10) rice husk fired power projects
under documents.
 > 30 wood processing plants installed
wood chip fired fixed grade boilers for
drying products products.

5. 1. Status quo for Biogas and Biomass sector in Vietnam
Number of systems installed: Biogas
 Household scale: 200,000
systems
 Digester volume: 5-20 m3
 Producing bio-gas for cooking,
lighting, and electricity generation
 Industrial scale:
 For power generation: one existing
plant with 2MW (4unit x0.5MW)
 For heat usage: 8 existing boilers:
5-12 ton steam/hour)
 9 projects under documents for
power generation with capacity size
from 1.2 to 3.5MW
Systems (industrial scale)
Location
Feedstock
Biogas
Capacity (m3)
Current
Binh Duong
Animal (pig)
17,000
Power
Binh Phuoc
Cassava wastes
27,000
Heat
Quang Ngai
Cassava wastes
22,000
Heat
Thanh Hoa
Sugar waste
16,000
Heat
Dong Nai
Phu Tho
Ninh Binh
Hoa Binh
Nghe An
An Giang
Cassava wastes
Cassava wastes
Animal (pig)
Cassava wastes
Animal (cow)
Fish waste
87,000
22,000
13,000
12,000
120,000
Groups
Heat
F/S
F/S
F/S
Pre.F/S
Pre.F/S

6. 1. Status quo for Biogas and Biomass sector in Vietnam
Major feedstocks
 Biogas energy potential is approximately 10 billion m3/year, which can
be collected from landfills, animal excrements (households & pig farms
scale); and agricultural residues; waste water treatment from food and
other processing industrial levels.
Methane amount from domestic animals’ wastes (2010)
Biogas output
(million m3/year)
Buffalo
335-720
Cow and bull
562-1200
Pig
1500-2250
Poultry
1400-1680
Sub - total
3797 - 5850
Waste
water
NA
treatment from food
and other processing
Animal
Average biogas output
(million m3/year)*
527.5
881
1875
1540
4823.5
NA
Percentage
(%)
10.93
18.26
38.87
31.94
100

7. 1. Status quo for Biogas and Biomass sector in Vietnam
Major feedstocks
Wood energy and wood wastes
Biomass resources
Natural forest
Planting forest
Bare land
Industrial perennial
Fruit tree
Scattered tree
Wood cheeps
Sawdust and shavings
Building (timber from work
and house repairs)
Total
Amount for energy
usage (mill. Tons)
14,07
9,07
2,47
2,00
0,41
7,79
5,58
1,12
0,80
characteristics of main
biomass fuels
Density (kg/m3)
Heating value (kcal/kg)
Average moisture content (%)
Ash content (%)
43,31
Agricultural residues
Biomass resources
Rice straw
Sugar wastes (tops and leaves)
corn residues
Cassava stems
Rice husk
Bagasse
Groundnut shells
Coffee husk
Cashew nut shells
Others (estimated)
Total
Amount for energy
usage (mill. tons)
40,00
7,80
9,20
2,49
8,00
7,80
0,15
0,17
0,09
4,00
74,90
Rice husk
Bagasse
Rice straw
Wood/wood
wastes
120
260
400
500
3000
1850
2800
3500
14
50
29
25
16-18
2-5
10-15
1-3

8. 1. Status quo for Biogas and Biomass sector in Vietnam
Technology applied
 Biogas: small size – household scale
 Anaerobic fermentation
Material: Fixed with fired brick; Steal –
Floating; Composite’ and Plastic bags
 Medium size – pig farm scale
Connected by blocks

Big size – industrial scale: Two types
Simply: lagoon and plug flow
Higher: Contact Reactor (ACR); Anaerobic
Filter Reactor (AF); Down flow Stationary
Fixed Film Reactor (DSFF); Up flow
Anaerobic Sludge Blanket (UASB); and
Fluidized Bed Reactor (FB).

9. 1. Status quo for Biogas and Biomass sector in Vietnam
Technology applied
Covered Lagoon (Pig farm): Heat
UASB (Pig farm): 2 MW
Major feedstocks

10. 1. Status quo for Biogas and Biomass sector in Vietnam
Technology applied
 Small scale Industry:
 Wood processing industry
 Boiler: direct combustion – fixed grade
 Medium and large industrial:
 Sugar industry: Cogeneration (heat and power)
 Boiler:
 Turbine: Backpressure steam; extraction steam
 Rice industry
 Boiler: Fluidized bed boiler
 Turbine: Condensing steam
Boiler burning pellets

11. 1. Status quo for Biogas and Biomass sector in Vietnam
Technology applied
 Biomass briquettes and pellets
 Briquetting machine: Local made; capacity: 100kg/hr
 Pellet machine: imported from Japan and china;
capacity from 300-500kg/hr
Rice husk briquette and briquetting machine
Pellet press machine
Mixed rice husk&bagasse pellets
Rice husk pellets
Bagasse pellets

12. 1. Status quo for Biogas and Biomass sector in Vietnam
Cost-benefits
 Biomass cost
Main Biomass
Heat value
Major feedstocks Price
(LHV); MJ/kg
USD/ton
Moisture
contents (%)
Cost structure
Wood residues
25-35%
14.5-15,0
10-30
Cost can from zero
Rice husk
12-15%
12.5 -13.0MJ
10-20
Paid to rice mills,
transportation
Bagasse
48-52%
7.7-8.0
0-5
Cost can from zero
(waste from processing)
Rice straw
20-25%
11.5-12.0
20-30
Paid to farmers, rolling,
transportation
 Technology cost (2010 USD/kW)
Rice husk
CFB
Fixed grade boiler
Bagasse
1800-2100
Wood residue
Other biomass
1800-2100
1200-1500
1500-2000

13. 1. Status quo for Biogas and Biomass sector in Vietnam
Cost-benefits
 Biomass benefit
Major feedstocks
 Net electricity production (6500 hour/year) – replace electricity from fossil fuels
 Income from selling electricity (waiting for new tariff mechanism)
 Net steam production
 Income from selling steam
 Income from selling other products:
 CERs
 Ash (rice husk ask)

14. 1. Status quo for Biogas and Biomass sector in Vietnam
Barriers
SUBSIDIZED ENERGY
TARIFF NOT SETTING UP
• Energy price from conventional
sources still subsidized (e.g. coal,
electricity)
• Only considered internal cost
(not yet considered external cost
viable)
• Selling price based on financing
cost of buyer
• Environment and social benefits
are not assessed
• FIT under preparing only
LACK OF BIOMASS DATA
AND PLANNING
BIG CONCERN OF
BIOMASS INVESTORS
• Lack of reliably data
• Lack of detailed assessment
• Lack of detailed planning in the
mid and long term
• How to get biomass fuel reliably
all the year, all the project’s life
time
• Seasonable production
• Scattered biomass owners
• Collection, transports system
Major feedstocks

15. 2. Case studies of Biogas and Biomass
Study, propose the support mechanism for grid-connected
electricity generated from biomass projects in Vietnam
 Objective: setting up
incentive tariff for biomass
power projects; and SPPA.
 Types of raw biomass
selected: Bagasse; rice
straw, rice husk; and wood
residues.
 Three main mechanisms:
price based; quantity based;
and tending based.
 Tariff types: One
component “FIT”; Two
components (FITfixed and
FITvar); and Avoided cost
Auxiliary Costs
Equipment Costs
CAPEX
Construction time: 2
years
Investment Costs
Efficiency (Heat
rate)
O&M Costs
Ash disposal
Lifetime 20 years
LCOE
Feedstock Costs
Capacity factor
82%
Discount rate
10%
The LCOE framework for Biomass Power Generation

16. 2. Case studies of Biogas and Biomass
Study, propose tariff for grid-connected electricity from biomass
projects in Vietnam
 Objective: setting up
Capital-linked
Financial data
INPUT DATA
payment
incentive tariff for
- Source of Funds
- Source of Funds
biomass power
- Tax
- Tax Payment
projects; and SPPA. Mjor Payment
- Carbon Credits
- Carbon Credits
feedstocks
 Types of raw
LCOE
Economical
biomass selected:
Energy data
Conditions
Bagasse; rice straw,
- Fuel price
- Fuel data
- Loan Financing
rice husk; and wood
- By-production
- Equity Capital
residues.
price
 Three main
mechanisms
Consumption,
Financial data
Revenues
considered: price
Operation-link
based; quantity
payments
- Electricity
- Source
of
based; and tending
- Heat
Funds
- Other Products
based.
- Tax Payment

17. 2. Case studies of Biogas and Biomass
Study, propose the support mechanism for grid-connected electricity
generated from biomass projects in Vietnam: Priminitary results
Profit/Loss
Profit/Loss
Other sales
Other sales
Internal steam
Export electricity
Internal steam
Export electricity
Internal electricity
Internal electricity
Total O&M
Other variable costs
Bagasse cogen
Total O&M
Other variable costs
Fuel costs
Fuel costs
Capital costs
Capital costs
-4.000.000 -2.000.000
0
-4.000.000
2.000.000 4.000.000 6.000.000 8.000.000
-2.000.000
Profit/Loss
Internal electricity
Total O&M
Other variable costs
2.000.000
4.000.000
6.000.00
Other sales
Internal steam
Export electricity
Internal electricity
Total O&M
Other variable costs
0
Profit/Loss
Other sales
Internal steam
Export electricity
Rice straw power
-2.000.000
Wood waste power
Fuel costs
Capital costs
Fuel costs
Capital costs
-4.000.000
Rice husk power
0
2.000.000
4.000.000
-4.000.000-2.000.000
6.000.000
0
2.000.000 4.000.000 6.000.000 8.000.000

18. 3. Summary and conclusion
 Vietnam have large biomass and biogas potential but the exploitation
of their potential is still limitation.
 VN’s Government set up target for exploitation and development
available biomass and other RE resources.
 Gov.’s incentive mechanism for biomass, biogas have been preparing
and drafting.
 Price based mechanism is considering. They are good opportunities
for:
 Strengthen the viability of biomass, biogas projects which largely depend
on the reliability of the cash flow
 Enhance the competitiveness of biomass/biogas operators with
conventional energy operators
 Create opportunities for development of the most efficient technologies as
well as technology transfer.

19. Thank you for your attention!
Contact: Mr. Nguyen Duc Cuong
Director of Center for Renewable Energy and CDM
Institute of Energy
Tel: 84-4-38527085; Mobi: 84 (0) 912009700
Fax: 84-4-38523311
Email: cuongnd.re@gmail.com or cuongnd_ie@fpt.vn