Japan-based Erex Co. Ltd. and Vietnam-based Vinacomin Power Holdings have entered into a memorandum of understanding to investigate the feasibility of commercial-scale biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More cofiring at two Vietnamese coal-fired power facilities. This collaborative effort follows successful preliminary testing conducted at the generation sites. The agreement aligns with broader national energy transitions occurring within the Southeast Asian infrastructure landscape. It represents a structured corporate approach to evaluating fuel-switching viability within existing asset frameworks.

The major challenge addressed by this initiative is the reconciliation of Vietnam’s rapidly expanding electricity demand with its domestic decarbonization commitments. Electric power demand in the country is rising at an annual rate of approximately 10%. Currently, coal-fired facilities generate roughly half of the nation’s electricity, presenting a significant hurdle to its goal of achieving net-zero carbon emissions by 2050. Furthermore, the regulatory environment, specifically Vietnam’s eighth national power development plan, mandates that coal-fired facilities operational for 20 years or more must integrate biomass, ammonia, or other alternative fuels.

To resolve these technical and regulatory pressures, the organizations implemented structured cofiring trials using localized biomass feedstocks. At the 55-megawatt Na Duong Power Plant, a trial conducted from September to November 2025 achieved a 20% cofiring rate utilizing wood chips. A subsequent test at the 57.5-megawatt Cao Ngan Power Plant, executed between December 2025 and January 2026, successfully reached a 30% cofiring threshold utilizing processed wood pellets. These interventions utilized existing combustion infrastructure to demonstrate the technical compatibility of woody biomass within mid-scale coal generation units.

The primary outcome of these initiatives is the formalization of the commercial feasibility study via the newly signed memorandum of understanding. The successful generation parameters achieved during the wood chip and pellet trials provided the empirical performance data required to advance past the initial testing phases. Consequently, both entities are now positioned to evaluate the economic and logistical frameworks necessary for full-scale commercial implementation. This progression establishes a repeatable operational template for compliance with the national power development plan, moving the existing assets closer to the 2050 carbon neutrality objective.