Vietnam Biomass Gasification Market Outlook to 2030

Vietnam Biomass Gasification Market Overview

• The Vietnam Biomass Gasification Market has witnessed a notable growth, this is reflected by the Global Biomass Gasification Market reaching a valuation of USD 33.33 billion in 2023. This growth is primarily driven by the agricultural sector's waste, which provides a significant biomass feedstock, and the increasing energy demand in rural areas.
• Several key players dominate the Vietnam Biomass Gasification Market, including GE Power, Siemens AG, Ankur Scientific Energy Technologies Pvt. Ltd., NAC Energy Solutions, and Vietnam Gasification Technology Co., Ltd. These companies are pivotal in advancing gasification technology and increasing its adoption across various industries in Vietnam.
• The VGT are expected to benefit approximately 1.2 million people, with around 2,500 MSEs adopting VCBG as their primary energy source by 2020-2024. The project anticipates utilizing 1.4 million tonnes of biomass as fuel, leading to a reduction of about 2 million tonnes of CO2 emissions in the targeted provinces.
• In 2023, Can Tho was dominating the market and its surrounding areas accounted for the portion of the market share due to the region's extensive agricultural activities, which produce large quantities of biomass feedstock such as rice husks and sugarcane residues. The local government's supportive policies and investments in renewable energy projects further enhance the market's dominance in this region, making Can Tho a central hub for biomass gasification initiatives.

Vietnam Biomass Gasification Market Segmentation

The Vietnam Biomass Gasification Market can be segmented by various factors like by feedstock type, by application and by region.

By Feedstock Type: The Vietnam Biomass Gasification Market is segmented by feedstock type into agricultural residues, wood and forestry residues, and municipal solid waste. In 2023, agricultural residues were dominating the Vietnam biomass gasification market. This dominance is attributed to Vietnam's significant agricultural sector, which produces large quantities of waste such as rice husks, straw, and corn stalks. These residues are readily available and have high energy potential, making them a preferred feedstock for biomass gasification.

By Application: The Vietnam Biomass Gasification Market is segmented by application into power generation, industrial heating, and transportation fuels. In 2023, Power generation was dominating due to the growing demand for electricity in rural areas and the government's focus on renewable energy sources contribute to this segment's dominance. Biomass gasification plants provide a reliable and sustainable source of power, reducing dependency on conventional fossil fuels.

By Region: The Vietnam Biomass Gasification Market is segmented by region into north, south, east, and west. The Southern region was dominating the market in 2023, due to its high population density and industrial activities in this region drive the demand for sustainable energy solutions, making it a significant market for biomass gasification.

Vietnam Biomass Gasification Market Competitive Landscape

• GE Power: In 2022, GE has partnered with PetroVietnam Power Corporation to implement the 9HA.02 gas turbine technology at the Nhon Trach 3 & 4 combined-cycle power plants. While this project primarily focuses on natural gas, GE's expertise in flexible fuel technologies may provide insights applicable to biomass gasification as the country seeks to diversify its energy sources.
• Valmet: In May 2022, Valmets new pre-treatment Biotrac pilot plant opened at the fiber technology center in Sundsvall, Sweden. The pilot facility investment would held Valment enhance its research and development skills in the field of biomass pre-treatment, as well as respond to the market need for the bioenergy, biofuels, and biochemicals.

Vietnam Biomass Gasification Market Analysis

Vietnam Biomass Gasification Market Growth Drivers

• Environmental Benefits and Carbon Credits: Biomass gasification significantly reduces greenhouse gas emissions compared to fossil fuels. The government ambitious target of the net zero emissions by 2050, with a goal of 30% renewable energy by 2030. This environmental benefit is augmented by the potential for earning carbon credits, which can be traded internationally, providing an additional revenue stream for biomass gasification projects and encouraging further investments.

• Abundant Biomass Feedstock Availability: Vietnam has access to vast amounts of agricultural residues. Biomass waste streams can be used for several purposes such as biomass combustion or gasification. Vietnam produces 23 million tons of rice straw and 8-9 million tons of rice husk yearly. Only half of rice husk is used for domestic cooking, for ceramic/ brick kilns or returned to the field as fertilizer, and recently, used in few rice husk-fired plants in Mekong Delta. This availability ensures a continuous raw material source for energy production, driving the growth of the biomass gasification market.

• Rising Energy Demand: Vietnam's energy consumption is projected to continue rising due to rapid industrialization and population growth. The increasing energy demand, especially in rural and semi-urban areas where grid access is limited, necessitates alternative energy solutions. Biomass gasification offers a reliable and sustainable source of energy, meeting this growing demand and propelling market growth.

Vietnam Biomass Gasification Market Challenges.

• Supply Chain Issues: The logistics of collecting, transporting, and storing biomass feedstock are complex and cost-intensive. In 2024, transportation costs for biomass in Vietnam is increased that ensuring a consistent and efficient supply chain for biomass feedstock is crucial for the continuous operation of gasification plants. Any disruption in the supply chain can significantly impact the plant's operational efficiency and profitability.
• Regulatory Hurdles: Navigating the regulatory landscape in Vietnam can be challenging for biomass gasification projects. In 2024, multiple projects faced delays due to lengthy approval processes and bureaucratic red tape. Ensuring compliance with environmental regulations, securing permits, and adhering to local government policies require significant time and resources, which can hinder the timely implementation of projects.

Vietnam Biomass Gasification Market Government Initiatives

• Renewable Energy Development: On May 15, 2023, the Vietnamese government released Vietnams Eighth Power Development Plan (PDP8). According to the revised PDP8 and the Renewable Energy Development Strategy, biomass energyparticularly from wood pellets to support the development of forest plantations and wood processing industries in Vietnamis prioritized, with the goal of achieving 2.27 GW of power generation by 2030.
• Feed-in Tariffs for Biomass Energy: In 2023, the Vietnamese government implemented feed-in tariffs (FIT) for biomass energy, offering high rates. This policy aims to make biomass energy projects financially attractive by guaranteeing a fixed price for the electricity generated. The FIT scheme is designed to attract more private sector investments into the biomass gasification market.

Vietnam Biomass Gasification Market Future Outlook

The Vietnam Biomass Gasification Market is expected to grow exponentially by 2028. This growth will be fueled by ongoing technological advancements, increasing government support, and rising environmental awareness among the populace.

Market Trends

• Growing Export Potential: Vietnam's biomass gasification market is expected to explore export opportunities, particularly in Southeast Asia. The country's expertise and technological advancements in biomass gasification could lead to increased export of technology and services. By 2028, the export value of biomass gasification technology and services is projected to grow, driven by regional demand for sustainable energy solutions and Vietnam's competitive edge in this sector.
• Increased Investments in Biomass Gasification Projects: Over the next five years, investments in biomass gasification projects in Vietnam are expected to rise significantly. This trend will be driven by growing demand for renewable energy and continued government support. The increased capital inflow will lead to the development of new gasification plants and related infrastructure, enhancing the market's overall capacity and technological sophistication.