Japanese renewable energy player the Erex Co., Ltd. kicked off construction on March 6 of a VND478.8 billion ($19.4 million) biomass fuel factory in the northern province of Tuyen Quang.

The Erex Sakura Tuyen Quang project is designed to produce 150,000 tons of biomass pellets and 150,000 tons of wood chips each year. Operations are expected to commence in 2025, and the project will create employment opportunities for local people and promote the province’s economic recovery.

High-quality wood pellets from the factory can be widely used as fuel for thermal power plants, heating furnaces, industrial incinerators, steam systems, and drying livestock feed.

Mr. Honna Hitoshi, Representative Director and President of Erex, emphasized in his speech at the breaking-ground ceremony that with support from Tuyen Quang the project quickly received an investment license.

The breaking of ground contributes to realizing Vietnam’s net-zero emissions target, providing stable electricity supply and meeting the economic development needs of Tuyen Quang and Vietnam as a whole. Rich in biomass resources, using biomass fuels such as wood waste as a source of sustainable energy is key to Vietnam’s goal of reducing emissions to zero.

“We hope to contribute to Vietnam’s energy revolution to increase its self-reliance and contribute to local economic development and job creation,” Mr. Hitoshi said.

Speaking at the ceremony, Mr. Nguyen Van Son, Chairman of the Tuyen Quang Provincial People’s Committee, affirmed that, in recent years, the province has accompanied and cooperated in development with a range of partners from around the world to achieve local socio-economic development goals. Tuyen Quang has attracted 20 FDI projects from 17 foreign investors, with total investment of over $340 million. It has also received assistance from many international partners, including Japanese partners, who have supported 25 projects with capital of $1.4 million in healthcare, education, and the environment, etc.

With Erex’s experience and financial capacity, Mr. Son believes the biomass fuel factory will be completed on schedule and put into production as planned, contributing to green growth and creating a low-carbon economy.