Vietnamese cement producers failing to build waste heat recovery systems

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Vietnam: Larger cement producers in Vietnam have failed to build government mandated waste heat recovery (WHR) systems. Under Vietnam's cement industry development plan until 2020 with a vision towards 2030, all cement plants with a clinker production capacity of 2500t/day or above have to implement a WHR system to save at least 20% of their electricity consumption by 2015. However, local media has reported that only Holcim and Ha Tien 2 have invested in the technology. Other cement producers have been prevented from investing in their plants by high debt and poor local demand for cement.

Nguyen Quang Cung, chairman of the Vietnam Cement Association admitted to the delayed investment in the WHR systems. "However, there won't be an extension. The cement makers will be forced to implement this on time," said Quang Cung.

Nguyen Cong Minh Bao, director of Sustainable Development of Holcim Vietnam, which invested US$18m in a WHR system in 2012, said that Vietnam should not extend the deadline. According to Bao 60% of Chinese firms apply the system in China and WHR is an intrinsic component of any new project.

Holcim Vietnam's WHR system has an output capacity of 44MkWh/yr. It will be enough to serve the firm's Hon Chong Cement Factory for 88 days of operation, meaning Holcim Vietnam will save 9000t of coal and reduce 25,300t of CO2 per year.

Vietnam's cement sector is considered as one of the country's most energy-intensive industries. Under the third draft of the retail pricing scheme conducted by the state-run Electricity of Vietnam in 2013, steel and cement producers using power voltages of 110kV or higher during peak hour would pay 10% than the asking price for their normal power. Overall, the draft would dish out a power tariff hike of 2 - 16% to steel and cement producers.

Last modified on 02 April 2014

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