An important step towards increasing energy efficiency and lowering emissions in the nation's cement industry has been taken with the awarding of a major engineering, procurement, and construction (EPC) contract for a new Waste Heat Recovery Power Generation (WHRPG) system at VICEM Ha Tien Cement's Kien Luong cement plant.
A group of Sinoma International Engineering, Viet Industrial Construction and Installation, and Viet Tuan Trading Construction Architecture signed the EPC agreement on October 20. The Vietnam Cement Association formally announced the signing of the contract on October 21.
An Important Investment in Ecological Cement Manufacturing
In order to reduce energy consumption and operating costs while supporting Vietnam's larger goals for carbon reduction and green development, the WHRPG project will use excess heat from the plant's clinker production line to generate electricity.
Important terms of the contract include:
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EPC value: USD 7.5 million, or VND 198.79 billion
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VND 31.26 billion was saved over the initial budget.
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Project duration: 16 months; lump-sum EPC arrangement
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Nine work packages totalling VND 266.67 billion were used for the project.
The waste heat power generation system's design, equipment supply, construction, and installation will all fall under the purview of the EPC.
Greater Efficiency and Reduced Emissions
When the WHRPG system is in use, it will:
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Cut CO2 emissions
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Reduce heat and dust pollution
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offset a sizable amount of the plant's internal electricity requirements
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Boost energy independence and cost competitiveness
With a long-term vision that extends to 2050, the initiative supports the goals set forth in Vietnam's Construction Materials Development Strategy 2021-2030.
Market Situation
The project is in line with industry initiatives to boost competitiveness and modernise in the face of volatile cement prices. Platts evaluated as of October 16:
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FOB Vietnam, cement (ASTM Type I): $35.50/mt
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$30.50/mt for cement clinker FOB Vietnam, up from the week before
For manufacturers like VICEM Ha Tien, increasing clinker costs emphasise the significance of operational effectiveness and lower power consumption.
A calculated move forward
Now that the EPC contract is in place, construction will start right away, signalling the beginning of a significant upgrade driven by sustainability for one of Vietnam's top cement producers. The system is anticipated to support Vietnam's national energy conservation and emission-reduction objectives while bolstering VICEM Ha Tien's operational resilience.
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