Problems from practice
Aiming for the goal of “net zero” (no addition to the total amount of greenhouse gases emitted into the atmosphere) by 2050, the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Plan VIII) clearly orients the development of coal-fired thermal power: “Only continue to implement projects that are included in the adjusted Power Plan VII and are being invested in and built until 2030. Orient to convert fuel to biomass and ammonia for plants that have been in operation for 20 years when the cost is suitable. Stop operating plants that are over 40 years old if they cannot convert fuel”.
At a recent meeting between leaders of the Ministry of Industry and Trade and investors, owners of coal-fired thermal power plants, and related corporations and groups, many concerns and difficulties in converting fuel from coal to ammonia and biomass fuel (green hydrogen) were raised. Deputy General Director of Vietnam Electricity Group (EVN) Nguyen Tai Anh said that EVN is managing and operating 15 coal-fired thermal power plants with 36 units, of which 2 units have been operating for over 20 years, 4 units have been operating for approximately 40 years, and 4 units have been operating for nearly 50 years. By 2030, there will be 4 more units operating for over 20 years. The Group has researched, tested and planned to convert fuel for unit S7 of the Uong Bi Thermal Power Plant expansion and S1, S2 of the Quang Ninh Thermal Power Plant...
“The main difficulty is that the world’s ammonia combustion technology is only in the experimental stage. In the country, there is no factory testing ammonia combustion and therefore there is no assessment of economics, technology, as well as the impact on people, the environment and equipment. In addition, the ability to supply ammonia and biomass fuels in the current period is limited, not ensuring long-term and stable operation…”, Mr. Nguyen Tai Anh clearly stated.
Representatives of the Vietnam National Coal and Mineral Industries Group (TKV) and power generation corporations 1, 2 and 3 are also concerned about the biomass price on the market being higher than the coal price, while there is no policy mechanism to support the conversion of factories to co-use biomass and ammonia fuel to expand testing and find long-term supply partners.
Owners of BOT coal-fired thermal power projects such as Nghi Son 2, Vinh Tan 1, Duyen Hai 2 are concerned about the terms of the signed power purchase contracts. The fuel conversion will make the production cost higher than the price agreed in the power purchase contract. Many questions are raised such as how will the remaining contract period be implemented? Who will bear the additional costs for technology conversion and fuel conversion costs?...
Need suitable roadmap and determination to transform
Minister of Industry and Trade Nguyen Hong Dien affirmed that the conversion of coal fuel to biomass and ammonia fuel requires a suitable plan and roadmap, ensuring CO2 emission reduction according to the roadmap as committed by Vietnam to international partners, while not affecting energy security and electricity supply for socio-economic development. Therefore, it is necessary to study and evaluate thoroughly and comprehensively all impacts on all areas to develop specific and feasible programs and solutions that do not cause damage to all subjects during the conversion.
On that basis, according to the request of the Ministry of Industry and Trade, in the coming time, investors and owners of coal-fired thermal power plants need to be determined to convert fuel in accordance with the spirit that plants that are 40 years old or older will cease operations. Plants that are 20 years old or older must convert coal fuel to biomass and ammonia.
One of the solutions proposed by the Ministry is for units to actively cooperate in research and proactively seek alternative biomass fuel sources. The Department of Electricity and Renewable Energy, Ministry of Industry and Trade, in collaboration with relevant units, will continue to research, based on commitments from international organizations, to propose some initial policy mechanisms to support the fuel conversion of coal-fired thermal power plants.
In order to successfully convert coal fuel to biomass and ammonia, corporations, general companies, investors, and owners of coal-fired thermal power plants all hope that the Government and the Ministry of Industry and Trade will soon have a roadmap as well as specific mechanisms and policies on planning raw material areas and financial support policies..., creating a foundation and favorable conditions for factories to implement.
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