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Report on:Report on:

THE POTENTIAL FOR BIOGAS AND THE POTENTIAL FOR BIOGAS AND BIOMASS COMBUSTION (AVAILABLE BIOMASS COMBUSTION (AVAILABLE

SUBSTRATES) AND FRAMEWORK SUBSTRATES) AND FRAMEWORK CONDITIONSCONDITIONS IN VIETNAM IN VIETNAM

PhuPhu QuocQuoc 9 December 2004.9 December 2004.

BiWAREBiWARE projectproject

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I. General information on VietnamLocation:Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, alongside China, Laos, and Cambodia Geographic

Map references:

Area:Total: 329,560 sq km Land: 325,360 sq km Water: 4,200 sq km

Land boundaries:Total: 4,639 km Coastline:3,444 km (excludes islands)

Climate:Tropical in south; monsoonal

Terrain:Low, flat delta in south and north; central highlands; hilly, mountainous in far north and northwest

Population:82,689,518 (July 2004 est.)

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II. General information on the Mekong DeltaMekong Delta

+ + The Mekong Delta consists of 12 provinces and one City under theThe Mekong Delta consists of 12 provinces and one City under the Central Central GovernmentGovernment

+ The Mekong Delta area is 39,554 km+ The Mekong Delta area is 39,554 km22 (12% the country area) With small (12% the country area) With small area, the Mekong delta produced 47, 9% the total food provisionsarea, the Mekong delta produced 47, 9% the total food provisions of the of the country including 50% rice and more than 60 % fruits production.country including 50% rice and more than 60 % fruits production.

+ The + The recent years, the industrial field in the Mekong Delta has a remarkablyears, the industrial field in the Mekong Delta has a remarkable e advance. Many industrial and export processing zones has been coadvance. Many industrial and export processing zones has been constructed.nstructed.

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III. Selecting places to survey:

There are 7 places selected:1. Lam Dong province: Highland with forestry and industry crops. 2. Thap Muoi district- Dong Thap province: Remote region for

agricultural production, big organic substrates from farming andfrom water hyacinth.

3. CanTho City: Young City with many industrial zones and organic subtrates from agricultural production.

4. An Giang province: Huge biomass potential from agricultural production, 2.7million tones/year, the highest in the Mekong Delta. It is also strong in the field of aquaculture and fish & shrimp processing for export and national demand.

5. Long My district- Hau Giang province: Region for rice production and another cereal crops.

6. Ca Mau province: Region with forest and shrimp production.7. Phu Quoc Island- Kien giang province: Tourism area far from

mainland where needs decentralised energy production.

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THE METHODOLOGY OF DETERMINING THE TECHNICAL POTENTIAL IS ILLUSTRATED IN THE FOLLOWING GRAPH

D e te rm in a t io n o fG r o s s T e c h n ic a lE n e r g y P o te n t ia l

(G T P e )

A n n u a l p ro d u c t io n /a n n u a l q u a n t i t y /n u m b e r o f u n i t s

S p e c i f ic q u a n t i t y /p ro d u c t io n r a t io s

S e a s o n a la v a i la b i l i t y

P h y s . & c h e m .p ro p e r t ie s

D e te rm in a t io no f N e t S u p p ly

P o te n t ia l (N S P )

D e te rm in a t io no f C u r r e n t ly

U t i l i z e dP o te n t ia l (U P )

D e te rm in a t io n o fT e c h n ic a lP o te n t ia l

S u p p ly c o n s t ra in ts(n u m b e r o f c o l le c t io n

s i te s , h a r v e s t in gm e th o d s , e t c . )

C u r re n t u t i l iz a t io n( c o m p e te t iv e u s e s ,

e tc . )

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Determining the Technical Potential of major biomass energy sources in Vietnam

Classification of the several types of substrates can be made into the following main categories:

1. Agro based residues2. Animal husbandry3. Forestry based residues4. Solid waste5. Industrial wastewaters

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1. AGRO BASED RESIDUES

N et techn ica l e nerg y p o ten t ia l fo r ag ricu ltu ra l c ro p s (an nu a l c ro p s) in V ie tna m

T y p e o f re sid u e P ro d u ctio n

[m illio n M g /a ]

R esid ue/p ro d

u ct-ra tio

L o w e r h ea t v a lu e

(L H V ) [M J /kg ]

G ro ss T ech n ica l

E n e rg y p o ten tia l

(G T P e) [T J /a ]

T ech n ica l p o ten tia l o f

en erg y so u rc e [T J /a ]

R ic e st raw 3 4 ,5 2 1 ,7 5 7 1 0 ,2 4 6 2 1 .0 4 8 1 3 9 .7 3 6 R ic e hu sk 3 4 ,5 2 0 ,2 6 7 1 4 ,2 7 1 3 1 .5 1 9 4 6 .0 3 2 S u g ar cane (bag a sse) 1 6 .5 2 0 ,2 9 1 8 ,1 0 8 6 .7 3 9 1 7 .3 4 8 S u g ar C ane (T o p s/L eav es)

1 6 .5 2 0 ,3 1 5 ,8 1 7 8 .3 7 8 4 3 .8 9 1

M a ize co bs 1 ,1 8 0 ,2 3 1 6 ,2 8 4 .4 0 8 2 .3 6 3 M a ize hu sk C assa va sta lk s 2 ,2 1 0 ,0 6 2 1 7 ,5 0 2 .3 9 9 8 4 0 W ater h yac inth 0 ,1 9 - - 1 0 1 4 5

Technical potential of agricultural residues (annual

crops) [TJ/a]Padd y s traw

56%Rice husk

18%

Sugar cane bag asse

7%

Sug ar cane (top s / leaves )

18 %

Water hyacinth0 ,02%

Cassava s talks0 ,34 %

Maize cobs1%

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Technical energy potential for perennial agricultural crops in Vietnam Type of residue Productio

n [million Mg/a]

Residue/product-ratio

Lower heat value (LHV) [MJ/kg]

Gross Technical Energy potential (GTPe) [TJ/a]

Technical potential of energy source [TJ/a]

Coconut husks 920.000 0,419 18,62 7,18 3,01 Coconut shells 920.000 0,12 18,09 2,00 0,84 Coconut fronds 317.772 - 16,00 5,08 1,63

Coffee husk 700.000 2,1 16,00 23,52 18,82 Rubber tree (wood) 1.130.535 - 16,00 18,09 14,47

Technical potential of perennial plantation crop

residues [TJ/a]

Co co nut shells2 %

Co co nut husks8 %

co co nut frond s4%

Co ffee husk4 9 %

Rub b er t ree (wo o d )

3 7%

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2. ANIMAL HUSBANDRY

Type of residue Lifestock population [million]

Specific manure production [Mg/a]

Specific methane yield [m3 CH4/Mg oDS]

Gross Technical Energy potential (GTPe) [TJ/a]

Technical potential of energy source [TJ/a]

Pig manure 24.879.100 1,17 255 14.618 4.386 Cattle manure 4.397.300 1,83 190 4.240 424 Buffalo manure 2.834.900 2,92 190 4.362 436 Poultry manure 254.300.000 0,011 305 5.068 1.520

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3. FORESTRY BASED RESIDUES

Type of residue Annual production [million m3]

Yield factor [%]

LHV [MJ/kg]

Gross Technical Energy potential (GTPe) [TJ/a]

Technical potential of energy source [TJ/a]

Logging residues 4,183,000 40 10,9 21,28 5 Sawn wood (solid, fines/dust)

2.957.000 50 16,0 11,83 3

Plywood (solid, dust)

37.000 50 16,0 0,15 0,04

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4. SOLID WASTE

Type of residue

Population Specific production [kg/person/day]

Specific biogas production [m3/kg oDS]

Gross Technical Energy potential (GTPe) [TJ/a]

Technical potential of energy source [TJ/a]

Municipal solid waste

80.902.400 0,6 0,35 53.578 6.751

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5. INDUSTRIAL WASTE WATERS

In Vietnam, several industries with high potential for biogas production could be identi

1. Breweries2. Fruit and vegetable processing (can industries)3. Seafood processing (frozen product)4. Pulp and paper production5. Slaughterhouse wastewaters

Type of residue Production Methane production [m3]

Gross Technical Energy potential (GTPe) [TJ/a]

Technical potential of energy source [TJ/a]

Breweries 1.049.800 3.141.002 113 34 Fruit and vegetable processing (canned fruit)

31.770 80.518 3 3

Seafood processing 200.000 1.865.318 67 67 Slaughterhouse/meat processing

1.600.000 8.200.192 295 295

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Technical potential of industrial wastewaters [TJ/a]

Slaughterhouse/meat p rocess ing

74%Seafood p rocess ing

17%

Breweries8%

Fruit and vegetabel p rocess ing

1%

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Status of Exploitation Renewable Energy in Vietnam

(Source: Renewable Energy Action Plan, 2002)

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ENERGY-POLICY FRAMEWORK CONDITIONS FOR ELECTRICITY MARKETS AND

RENEWABLE ENERGIES IN VIETNAM

nnednned expansion of capacityexpansion of capacity+ The Ministry of Industry estimates that national power station+ The Ministry of Industry estimates that national power stationcapacities will have to be increased by 1,000 MW per year until capacities will have to be increased by 1,000 MW per year until 2010 2010 + Annual investments of between US$ 1.8 and US$ 2 billion + Annual investments of between US$ 1.8 and US$ 2 billion + The minimum total requisite outlay by 2010, also including the+ The minimum total requisite outlay by 2010, also including the cost of cost of new transmission grids, is put at US$ 21 billionnew transmission grids, is put at US$ 21 billion

+ Hydropower is expected to play a leading role in future as wel+ Hydropower is expected to play a leading role in future as well, as the l, as the entire potential that can be exploited in the medium term amountentire potential that can be exploited in the medium term amounts to s to only about 10,000 MW. In contrast, coal is likely to play a greaonly about 10,000 MW. In contrast, coal is likely to play a greater part ter part in power generation in the north and natural gas in the south.in power generation in the north and natural gas in the south.346346

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Transmission grid

+ EVN subdivides its transmission grid into four geographical units, with a 500kV north-south backbone. + There are plans for transmission lines to the neighbouring countries, Cambodia and Laos.

Long-term trend in electricity consumption

+ The latest estimates forecast an increase in annual demand forelectricity in the coming years of between 13% and 15%.

+ EVN anticipates domestic demand amounting to 50–53 TWh as soon as 2005. By 2010, this is expected to rise to 88–93 TWh, and by 2020 to 200–225 TWh.

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Legal Framework

New power sector law

Decisions on the electricity sector were taken by the Prime Minister.

Participation of foreign investors

A government ordinance (Decree No. 95/2001/QD-Ttg) in June 2001 gave foreign investors the opportunity to acquire financial interests in the power generation sector (up to 20% of total capacity).

Policy for Promoting ElectricityGeneration from Renewable

With Decision No. 22 in 1999, the Vietnamese government established the first policy framework for using renewable energies for power generation and rural electrification according to the principle of minimum cost.

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Renewable Energy Action Plan (REAP)

To improve the application of renewable energies in the power sector, REAP identifies five components requiring national and international finance for their improvement or implementation:

1. Renewable energy policy and institutional development2. Individual systems for households and institutions (includingsocial institutions or also small manufacturing enterprises)3. Isolated municipal grids based on hydropower4. Power supply through grid-linked renewable energies5. Technology/market development and resource assessment 356

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REAP envisages a 10-year programme divided into two phases, coordinated by the Ministry of Industry.

+ In an initial step, the necessary political and legal foundations will be laid, a fund set up for the use of renewable energies inremote areas and the requisite personnel and technical capabilities strengthened.

+ In a second step specific projects will then be implemented, such as the installation of pico hydropower and photovoltaic systems for households and municipalities, of small-scale hydropower installations for supplying whole villages and grid-linked facilities using renewable energies.

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Biomass

+ Sources of energy are largely used for cooking and heating water and industrial sector, for example rice husks in brick making of drying agro- products.

+ Biomass resources could also be developed in particular for combined heat and power plants, using sugar-cane bagasse and residue and rice husks.

+ According to the Institute of Energy, an estimated 2.5 million t of bagasse and 3.8 million t of rice husks are available for energy recovery it is equivalent 250 to 400 MW..

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Bagasse, rice husks

+ Most of the 43 existing sugar mills, only three of which feed electricity into the public grid are situated south of Da Nang.

+ Rice husks have not been used for power production so far. The potential, however, is estimated at 150 to 200 MW in south and central Vietnam.

+ Vietnam has more than 100,000 rice mills, although only approximately 50 are located in the main growing region of the Mekong Delta with a throughput of more than 5 tonnes per hour. This would be enough for the economic operation of power generating sets of 500 kW or more.

Biogas:

+ Biogas installations that are mostly operated in the region of the Red River (north Vietnam) and in the Mekong Delta can be used more efficiently in productive sectors for direct thermal purposes

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Rural Electrification

+ At the end of 2001, some 85% of urban and 77% of rural households were connected to the mains supply.

+ Up to now, a total of 4 million households with approximately 20 million people lack access to grid electricity.

+ Vietnamese Government is seeking to increase the level of coverage for the rural population to 90% by 2010

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