The World Bank is expected to provide US$200m for Vietnam's cement companies to invest in technology to collect heat from their kilns to generate power, according to the Vietnam National Cement Association (VNCA).
VNCA said the financing pledge is part of the international lender’s programme to finance efficient energy consumption for the local cement industry and the step can help save some 30 per cent of electricity used in cement production.
The association’s chairman, Nguyen Quang Cung, said that the World Bank has guaranteed US$200m, but its funding might double to US$400 million depending on how fast the cement sector grows. He gave an example that Holcim and Ha Tien 2 in southern Vietnam, and Chinfon and Cong Thanh in the north have invested in heat recovery systems.
In 2012 Holcim Vietnam Ltd switched on its 6.3-MW power generation plant using heat from the kiln of its cement factory in the Mekong Delta province of Kien Giang. This US$18m facility can generate 44mkWh per year, which is sufficient to operate the cement plant for 88 days or power 18,300 households for one year.
