Tuyên Quang Provincial People's Committee coordinated with Japan’s Erex Joint Stock Company to start the construction of the Erex Sakura Tuyên Quang biomass fuel plant project at Long Bình An Industrial Park in Tuyên Quang Province on Wednesday.

On an area of ​​3.3ha with total investment capital of over VNĐ478.8 billion (equivalent to more than US$20.4 million), the plant produces biomass pellets and wood chips with a designed capacity of 150,000 tonnes of biomass pellet products and 150,000 tonnes of wood chip products yearly.

The high-quality wood pellet products are widely used in many fields such as fuel for thermal power plants, fireplaces, industrial incineration equipment, sauna systems and livestock feed dryers.

It is expected that the plant will be put into operation in 2025, contributing to creating jobs for people and promoting economic recovery in Tuyên Quang Province.

Speaking at the ceremony, President and General Director of Erex Joint Stock Company Honna Hitoshi said that the groundbreaking for the wood pellet plant contributed to realising Việt Nam's net emission reduction policy, providing stable electricity and meeting the economic development needs of Tuyên Quang Province and Việt Nam.

“Việt Nam has many biomass resources, so using biomass fuels such as wood waste as a sustainable energy source will be the key to bringing Việt Nam's net emissions to zero,” said Hitoshi.

Chairman of the provincial People's Committee Nguyễn Văn Sơn affirmed that the Erex Sakura Tuyên Quang Biomass Fuel Plant project is the first Japanese project and also one of the important industrial projects of Tuyên Quang Province.

“Tuyên Quang Province hopes that from this project, more Japanese businesses will invest in the province, especially in fields of supporting industries, assembly and investment in education and healthcare. Tuyên Quang Province is committed to always accompanying investors and constantly reforming administration, improving infrastructure and creating human resources to meet the requirements of investors, especially Japanese investors in Tuyên Quang Province,” said Sơn.

Tuyên Quang Province currently has 20 FDI projects of 17 foreign investors, with a total investment of over $340 million. The locality has received aid from many international partners, including Japanese partners who have supported the province in 25 projects with a total value of over $1.4 million in the fields of health, education and environment. — VNS