The ground-breaking ceremony. — VNA/VNS Photo Tuấn Anh

HÀ NỘI — Việt Nam on Thursday broke ground on the Yên Bái 1 biomass power plant, a 50-megawatt project worth nearly VNĐ3 trillion (about US$114 million), as part of efforts to expand renewable energy and cut carbon emissions.

The project, developed by Erex Yen Bai Biomass Power Co Ltd is located in Đông Cuông Commune, Lào Cai Province. It is backed by Japan’s Erex Group and falls under the Joint Crediting Mechanism, a bilateral initiative between Việt Nam and Japan to reduce greenhouse gas emissions.

The plant will use agricultural and forestry by-products as fuel and is expected to supply about 300 gigawatt-hours of electricity annually once it enters commercial operation in early 2028.

Japanese Ambassador to Việt Nam Ito Naoki said the plant would support both countries’ carbon neutrality goals and help create a positive cycle linking local agriculture, energy self-sufficiency and emissions reduction.

Vice Chairman of the Lào Cai People’s Committee Ngô Hạnh Phúc said the project aligns with the province’s socio-economic development strategy and investment priorities. He said it is expected to boost industrial output, supply electricity to the national grid, create jobs and raise local budget revenues.

He urged the investor to mobilise resources to ensure quality and timely construction while complying with Vietnamese regulations on investment, land use, construction and environmental protection. 

Lào Cai hopes the project will help attract more Japanese and foreign investors to the province, he added. — BIZHUB/VNS