Japan’s Electric Power Development Co, operating as J-POWER, has signed a memorandum of understanding (MoU) with Vietnam Forestry Corporation (Vinafor) to jointly explore opportunities for biomass business in the Southeast Asian country.
Vinafor is a major state-owned forestry corporation in Vietnam that manages approximately 43,000 hectares of forests and works in the fields of afforestation, manufacturing of industrial wood board and interior/exterior furniture for export, and trading of wood products.
The purpose of the MoU is for Vinafor and J-POWER to jointly examine the biomass business in Vietnam. J-POWER intends to enter into and expand the biomass power generation sector in the country, and will aim to gain knowledge of the sustainable use of biomass fuels through a broad involvement in the supply chain for biomass fuels.
The Japanese company noted that the demand for electric power has been increasing by nearly 10% a year in Vietnam and is expected to continue growing in the next ten years.
In order to meet the demand, the local government plans to introduce more renewable energy projects, including the use of biomass fuels from wood, as part of the National Power Development Plan (PDP) VIII.