Construction of a $20 million biomass fuel plant kicked off in northern Yen Bai province on July 6.

Erex Sakura Yen Bai is invested in by Japanese renewable energy firm the Erex Co., Ltd. and local partner the Sakura Green Energy JSC.

Covering 3 ha at the Bac Van Yen Industrial Complex, the plant has a designed capacity of 150,000 tons of wood pellets and 305,000 tons of wood chip products a year.

The project is expected to be put into operation in the third quarter of 2025.

It is the first of 14 projects from Erex in Vietnam.

A representative from the corporation said the project is expected to further promote the development of biomass fuel technology in Vietnam. The Japanese Government attaches great importance to the project, which is considered an advanced project for carbon decommissioning in Southeast Asia.