Hai Phong 600-Megawatt Thermal Power Station Leads Vietnam's Coal Input to $14 Billion Power Expansion

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). With demand for electrical power in Vietnam forecast to grow up to 16% a year through 2010, announcements of new projects to add to the country's total generating capacity are proceeding at an average rate over one per month. The new plants range from hydropower plants in the under 100 MW category to medium to large-sized hydro projects and cogen and thermal plants. The country had a GDP growth rate of 7.2% in 2003 and 7.7% in 2004. If this rate is maintained, it will put the country in the top echelon of developing countries and support the government's plans for industrial expansion

In March, the country's largest thermal power plant project was launched. The 600 MW Hai Phong will receive $126 million in financial support from the state's Bank for Investment and Development of Vietnam (BIDV). The primary investor in the $615 million project is the Hai Phong Thermoelectricity Joint Stock Company (HPTJ), which is owned by EVN (Electricity of Vietnam), Vinocoal (Vietnam Coal Corp) and Bao Viet. Japan's Marubeni (TSE:8002) will be working with HPTJ to execute the construction of the plant. Construction is expected to start next month.

The new plant's output of 3.6 billion kWh annually will meet fast-rising demand in the industrializing north and northeast of the country. The port city of Hai Phong is the third largest in the country and is the site for a number of new and proposed industrial development initiatives, which include dedicated industrial parks.

The Vietnamese government is actively promoting the construction of coal-fired power plants, and Vinocoal has plans to build a total of eight coal-fed plants by 2010, with a total generating capacity of 2,900 MW. Six of these, including Hai Phong, are in the construction or planning phase. The government expects a total investment of about $14 billion in the power industry through 2010.

Coal-fired plants are expected to provide 25% of the country's total electrical power production when current targets are reached. The government estimates that 10.2 million tons of coal is required annually to meet increasing domestic demand and the 20,000 MW total generating capacity targeted for 2010, up from the current 11,400 MW. For related news item see- February 23, 2005 - Phu My's 725 Megawatts Another Step Towards Vietnam's 7,500-Megawatt Additional Power Target by 2010

In 2002, Vietnam produced over 14 million tons, and Vinocoal has scheduled 30 million tons production this year, with 11 million tons for export to markets including Thailand, EU, Mexico, and Brazil. The country has an estimated reserve of 165 million tons, of which the majority is anthracite. New reserves have been identified. A 'significant' coal bed in the Red River Delta in the north will be used to feed thermal power plants. Vinocoal is also in discussions with the Fujian Province Coal Industry Corporation in China to form a joint project to develop the Bac Coc Sau mine in Quang Ninh province.

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