Consortium looks to develop coal-fired power plant in Vietnam

Saudi Arabian utility ACWA Power and South Korea’s Taekwang Power are among a consortium of companies that have agreed to develop the first phase of a 1200 MW coal-fired power plant in Vietnam.

The Nam Dinh 1 project, estimated to cost US$ 2 billion, will be located 150 km south of Hanoi and will be equipped with new clean coal burning technology, including a circulating fluidised bed combustion system as an alternative to the older pulverised coal combustion system. State-owned producer Vinacomin will supply coal to the plant. The project will consist of two 600 MW units, both scheduled for completion in 2020.

Vietnam is adding new generation capacity to meet rising demand for electricity and is developing several coal-fired power plants throughout the country. Coal imports into Vietnam will be forced to rise to meet increasing demand, while the country will also have to reduce exports in the coming years, even as new mining capacity comes on line.

There were 19 new coal mining projects in Vietnam as of 2013 scheduled to come on line by 2025. Vinacomin has said it may look at investing in overseas coal mining assets as domestic coal consumption rises.

Vietnam produces mostly anthracite, which it exports to China and South Korea, but its exports are falling. It is likely to export just 10mn t of coal this year, half of what it sold overseas in 2010, as increasing volumes of its coal production are diverted to the domestic market.

Domestic output in Vietnam is increasing, as new mining projects come on line. Future production growth, however, is likely to lag behind demand growth in the coming years. The country's coal production is expected to reach 82 million t by 2025, but this is still well below the 100 million t that will likely be needed by the country's power producers the same year.

Edited from various sources by Sam Dodson

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