JFEE Participating in a Large-Scale Waste to Energy Project in Vietnam Total produce from business planning to construction and operation

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

Company Name	T&J GREEN ENERGY COMPANY LIMITED
General Director	Vu Manh Tien
Head Office	Bac Ninh Province, Vietnam
Capital	Approximately 1.3 billion yen Thuan Thanh Environment   60％ JFE Engineering    40％
Business Outline	Waste treatment and power generation business

Company Overview of TT

Company Name	Thuan Thanh Environment Joint Stock Company
General Director	Vu Manh Tien
Head Office	Bac Ninh Province, Vietnam
Business Outline	Comprehensive recycling business

Company Overview of IFC

Company Name	International Finance Corporation(IFC)
Managing Director & Executive Vice President	Makhtar Diop
Head Office	Washington, D.C., U.S.A.
Locations	102 countries around the world (as of November 2021)
Mission	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

Name

Financing Programme for the Joint Crediting Mechanism (JCM) Model projects

Purpose

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:

Source: https://www.jfe-eng.co.jp/en/news/2021/20211216.html