Delegates attend to the plant's ground-breaking ceremony. — VNA/VNS Photo

Construction of a VND475 billion (US$20.4 million) biomass fuel plant started in the northern mountainous province of Yen Bai on Thursday.

Invested by Japanese Erex JSC and the Ha Noi-based Sakura Green Energy JSC, the 3ha-factory has a designed annual capacity of 150,000 tonnes of wood pellets and 305,000 tonnes of wood chip products a year.

The plant, the first of 14 Erex projects planned in Viet Nam, is slated for completion in the third quarter of 2025.

The companies said the plant's pellets can be used as fuel for thermal power plants, heating devices, food drying machines and other establishments.

Speaking at the groundbreaking ceremony, Tran Huy Tuan, chairman of the provincial People's Committee praised this project, saying that it is in line with the province's socio-economic development orientation, its priority areas for investment attraction and the national strategy on green growth.

Tuan requested relevant departments and sectors to create all the most favourable conditions for investors to speed up the construction progress and promptly support them to solve problems arising during project implementation.

At the same time, he also suggested investors focus their resources on implementing the project to ensure the quality and progress as committed, strictly complying with the provisions of the law on planning, land, investment, construction, environmental protection and other relevant laws.

Chairman of Erex JSC Honna Hitoshi said this project is expected to contribute to realising Viet Nam's policy of reducing net emissions, providing stable electricity, meeting the economic development needs of Yen Bai Province and Viet Nam as well, contributing to creating jobs for local people.

Yen Bai is home to three Japanese-invested projects with a total registered capital of $100.3 million. — VNS