The supply of convertible fuels is not yet stable.
This was the directive of Minister of Industry and Trade Nguyen Hong Dien at a meeting with investors of coal-fired power plants on June 12th, implementing Decision 500 of the Prime Minister approving the National Power Development Plan for the period 2021-2030, with a vision to 2050 (Power Plan 8) in Decision No. 500/QD-TTg on fuel conversion in coal-fired power plants.
According to Power Development Plan 8, many coal-fired power plants will have to switch fuels to reduce emissions.
Mr. Nguyen Tai Anh, Deputy General Director of Vietnam Electricity Group (EVN), said that EVN is researching, testing and planning to convert some units of thermal power plants such as: Uong Bi expansion (unit S7), Quang Ninh (S1, S2) with expected fuel types of biomass, ammonia...
According to Mr. Nguyen Tai Anh, the main difficulty currently is that ammonia combustion technology is not yet perfected worldwide and is only in the testing phase; no plant in Vietnam has yet improved or tested ammonia combustion to evaluate its economic , technical, and impactful effects on people, the environment, and equipment. In addition, there are not many domestic or international suppliers of ammonia and biomass fuels for long-term, stable operation.
Also at the conference, representatives of enterprises with coal-fired thermal power plants were concerned about the price of biomass on the market being higher than the price of coal; there is no policy mechanism to support the conversion price for plants implementing co-production of biomass and ammonia so that the plants can expand the experiment of fuel conversion...
Mr. Ngo Tri Thinh, General Director of TKV Power Corporation, suggested that in order to successfully convert coal fuel to biomass and ammonia, the Government, the Ministry of Industry and Trade, and relevant agencies should soon develop a roadmap, mechanisms, and policies on raw material area planning, financial support, electricity selling prices, etc., as a basis for thermal power plants to be implemented.
EVN is short 1 million tons of coal for electricity production.
Research and propose initial support policies.
Minister of Industry and Trade Nguyen Hong Dien stated that the transition from coal to biomass and ammonia fuels requires a suitable roadmap and plan to align with the Government's commitment to energy transition, achieving carbon neutrality by 2050, while ensuring that it does not affect energy security and the stable electricity supply for socio-economic development.
The Ministry of Industry and Trade recommends that businesses need to carefully and comprehensively research and evaluate the impacts in all areas to develop specific programs and solutions to ensure implementation without causing disadvantages or damages to all subjects participating in fuel conversion.
Accordingly, thermal power plants should proactively research and develop plans to switch from coal fuel to biomass or ammonia fuel after 20 years of operation. For coal-fired power plants that cannot switch fuels or cannot capture CO2 , it is recommended to research and develop a plan to cease operations after 40 years of operation.
Acknowledging the recommendations from investors, Minister Nguyen Hong Dien instructed the Department of Electricity and Renewable Energy (Ministry of Industry and Trade) to lead the research with relevant units to further study and propose Vietnamese policy mechanisms based on commitments with international organizations, in order to develop initial mechanisms and policies to support coal-fired power plants when transitioning to new fuels.
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