On April 5, representatives of KLINOVA attended the discussion “The role of pellets in boiler fuel conversion – Towards low emission production in Vietnam” organized by the Vietnam Timber and Forest Products Association, Vietnam Thermal Science and Technology Association and Forest Trends.
The seminar is to support the promotion of transitioning from high-emission fuel sources like coal and oil to low-emission wood pellets in small-scale manufacturing utilizing boiler systems. The discussion delved thoroughly into these targets, including:
1. Evaluating the current status of state management regulations and the use of fossil fuels in boiler systems at small-scale production facilities across various industries such as textiles, beverages, and food.
2. Assessing the motivation, benefits, and drawbacks of production facilities that have shifted from coal/oil to wood pellets as fuel sources.
3. Discussing essential factors required to facilitate and broaden the transition from fossil fuels to wood pellets, encompassing policy frameworks, investment requirements, technological advancements, etc.
4. Formulating recommendations pertaining to mechanisms, policies, and specific initiatives aimed at promoting the adoption of wood pellets for boiler systems in the future.
In Vietnam’s industrial sector, boilers play a vital role in supplying heat, steam, and hot water to various industries like food processing, textiles, and agricultural processing, etc. Many of these facilities rely on coal as their primary fuel source for operating the boiler systems. Transitioning from coal to cleaner fuel alternatives such as wood pellets holds significant promise for reducing emissions nationwide.
However, despite the potential benefits, the majority of wood pellets produced in Vietnam (approximately 95%, totaling about 5 million tons) are exported to markets like Japan and Korea. Only a small fraction, roughly 5% of the total supply, is currently utilized domestically, primarily in boiler systems of small-scale production facilities.
At present, numerous small-scale manufacturing facilities still utilize industrial boilers fueled by coal, underscoring the substantial emissions reduction potential associated with switching to cleaner raw materials on a national scale.
The seminar also serves as an opportunity for businesses to discuss challenges encountered in transitioning boilers to biomass. One of the highlighted challenges is the absence of a domestic carbon market in Vietnam, which fails to incentivize businesses to opt for lower-emission raw materials.
In line with regulatory efforts, Decree 06/2022/ND-CP mandates production facilities with high emission levels, as well as relevant ministries and branches, to reduce greenhouse gas emissions. This aligns with the goal of achieving net zero emissions by 2050. Consequently, businesses are urged to proactively transition to greener and cleaner materials to comply with governmental regulations and maintain competitiveness in the evolving market landscape.
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