Out-Law / Your Daily Need-To-Know
The International Finance Corporation (IFC) has approved a US$30 million financing package for a waste-to-energy (WtE) power plant in Vietnam.
The package consists of a US$15m loan from the IFC and US$15m concessional loan from the Finland-IFC Blended Finance for Climate programme, which was established in 2017 with the aim of encouraging investments and promoting private financing for low-income developing countries in their climate-related projects.
Renewables expert John Yeap of Pinsent Masons said: “Converting municipal waste to energy has had a challenged past across much of South East Asia, with issues ranging from collection and waste separation through to water content. However, developing waste to energy plants will help nations meet their net zero commitments and through the support of IFC and others, we would hopefully see more of such plants in the future.”
In June, the project was selected by the Japanese government under its Joint Crediting Mechanism (JCM) financing support programme for the fiscal year 2021. The JCM is a Japanese scheme which provides support to developing countries investing in low-carbon technologies, through which Japan is also able to meet its own emission reduction targets. Emissions reductions associated with these projects are assessed as the contributions of both Japan and its partner countries.
The Cuu Yen WtE power plant is designed to have 11.6 megawatts (MW) capacity at a worth of US$74m. It is located in the Thuan Thanh district of Bac Ninh province.
The plant is expected to have a waste treatment capacity of 500 tonnes per day and to be operational in 2024.
It will be developed, constructed, and operated by T&J Green Energy Company Limited, a joint venture between Vietnam’s Thuan Thanh Environment Joint Stock Company and JFE Engineering Corporation of Japan.
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