16 December 2021
JFE Engineering Corporation
JFE Engineering Corporation (President: Hajime Oshita, Head Office: Chiyoda-ku, Tokyo, hereafter referred to as JFEE) has agreed with Thuan Thanh Environment Joint Stock Company (General Director: Vu Manh Tien, Head Office: Bac Ninh Province, Vietnam, hereafter referred to as TT) to jointly establish T&J Green Energy Company Limited (General Director: Vu Manh Tien, Head Office: Bac Ninh Province, Vietnam, hereafter referred to as T&J) and start a Waste to Energy business in Bac Ninh Province, Vietnam.
Construction of the Waste to Energy plant, to be operated by T&J, is scheduled to begin in January 2022 and be completed in January 2024. JFEE will be in charge of the design, construction, and operation for the plant, while TT will be in charge of obtaining permits and licenses, securing land for the plant, collecting and transporting the waste, and treating the incinerated ash. The plant will incinerate 500 tons of municipal solid waste and industrial solid waste per day, with a power output of 11.6MW and an expected annual power generation of 91,872 MWh. The electricity generated will be sold to the Vietnam Electricity Corporation under the Feed in Tariff system.
This project is financially supported by the Japanese government through Financing Programme for the Joint Crediting Mechanism (JCM) Model Projects in FY 2021, and a loan from the International Finance Corporation (IFC) of the World Bank Group and the Finland-IFC Blended Finance for Climate Program will be used to finance of T&J's plant construction and operation. This financing was achieved under the expectation of the project's proper waste disposal and the potential to reduce greenhouse gas emissions by approximately 600,000 tons over 15 years. This project will be implemented under the cooperation of the Vietnamese and Japanese governments.
TT is a leading recycling company in Vietnam that comprehensively develops various recycling businesses including waste incineration. This project was realized by taking advantage of the strengths of both companies, including TT's experience, sales capabilities and JFEE's extensive experience in the construction and operation of Waste to Energy plants as well as the ability to execute projects in Vietnam. Starting with this project, both companies aim to launch similar projects on an ongoing basis.
Based on JFEE's experience in the construction and operation of waste treatment plants, JFEE will continue to contribute to the realization of a resource-recycling society by promoting business planning, construction, and operation in this field in Japan and overseas.
Company Overview of T&J
|T&J GREEN ENERGY COMPANY LIMITED
|Vu Manh Tien
|Bac Ninh Province, Vietnam
|Approximately 1.3 billion yen
Thuan Thanh Environment 60％
JFE Engineering 40％
|Waste treatment and power generation business
Company Overview of TT
|Thuan Thanh Environment Joint Stock Company
|Vu Manh Tien
|Bac Ninh Province, Vietnam
|Comprehensive recycling business
Company Overview of IFC
|International Finance Corporation(IFC)
|Managing Director & Executive Vice President
|Washington, D.C., U.S.A.
|102 countries around the world (as of November 2021)
|The largest global development institution focused on the private sector in emerging markets, using capital, expertise, and influence to create markets and opportunities in developing countries.
|Investment & Loans
|$31.5 billion committed worldwide in FY2021
Overview of JCM Model Projects
|Financing Programme for the Joint Crediting Mechanism (JCM) Model projects
|Ministry of the Environment, Japan has been implementing the "JCM Model Projects," which provides financial supports covering up to half of the initial investment costs. The purpose of this model projects is to financially support the implementation of projects which reduce GHG emissions by utilizing leading decarbonizing technologies in developing countries, and in return, to acquire JCM credits for achievement of Japan's GHG emission reduction and the partner countries' emission reduction target.
MOU ceremony between TT and JFE (Nov. 25)
Image of completed Plant
For inquiries regarding this press release, please contact:
- Public Relations Section, General Administration Department, JFE Engineering Corporation