Duyen Hai Power Generation Complex
|This article is part of the CoalSwarm coverage of Vietnam and coal|
Duyên Hải Power Generation Complex is a 3,105 megawatt (MW) coal-fired power plant complex in Dan Thanh commune, Duyên Hải district, Trà Vinh province, Vietnam. A further 1,200 MW is under development.
The project is located in the Duyên Hải Power Generation Complex, in the Duyên Hải district of Trà Vinh province. Duyên Hải-1 is to the southwest, Duyên Hải-2 on the northeast, and Duyên Hải-3 is in the center.
The planned power plant complex would be made up of three separate coal-fired power plants: Duyên Hải 1, 2, and 3. The first two are made up of two units each, and the third is made up of three units.
In April 2013, construction began on a US$280 million coal seaport, the Duyen Hai coal port, for the power complex. The seaport is being built by China Communications Construction, and is expected to be completed in late 2015; it will be capable of handling 12 million tons of coal per year for consumption at the complex's three power plants.
The 1,245-MW Duyên Hải-1 is a project of Vietnam Electricity Group (the successor company of the state-owned power monopoly). The construction contractor is the Chinese company Dongfeng Group, and the plant will cost $1.6 billion. Duyên Hải-1 broke ground in Sept. 2010. The two 622-MW units are both expected to enter service in July 2015.
(The revised Power Development Plan VII lists Unit 1 at 600 MW with an operating year of 2014, and Unit 2 at 600 MW with an operating year of 2015.)
Financing for Duyên Hải-1
In October 2011, financing for Duyên Hải-1 was closed. US$1.08 billion in loans was provided by Société Générale, BNP Paribas, Bank of China, Industrial and Commercial Bank of China, and China ExIm Bank.
The 1,200-MW Duyên Hải-2 is a project of the Malaysian company Teknik Janakuasa, a subsidiary of the MMC Corporation Berhad, and will cost $2.2 billion. In April 2011, Janakuasa signed Chinese company Huadian Engineering to take the lead in construction. In 2009, Janakuasa stated that construction would begin in 2010-11, and the plant would be completed in 2014; however, several years of delays apparently followed.
In December 2014, Janakuasa and the Vietnamese government reached preliminary agreement on a build-operate-transfer (BOT) contract to build the plant. The project still needs an investment license to proceed. The current plan is for completion in 2020.
Duyên Hải-2 was permitted in September 2015. Alstom will join Teknik Janakuasa as the main equipment supplier.
Construction of Duyên Hải-2 began in August 2016. It will cover an area of 60 hectares, and is estimated at US$2.2 billion. It is planned for operation in 2021. In June 2019 the completion date for Unit 2 was delayed to 2022 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7). In February 2020 the National Steering Committee on power development reported that construction was 58.71% complete and that Unit 1 was scheduled to be commissioned in June 2021 and Unit 2 in September 2021. On March 6, 2020 it was reported that construction of Duyên Hải-2 would be impacted by COVID-19 and that its estimated completion date of 2021 might be delayed. In May 2020 it was reported that foreign workers for the plant were not being permitted to enter Vietnam from China due to Covid-19-related travel restrictions. In July 2020 the project was reported to be 79.58% complete. As of June 2021, neither unit had been commissioned, suggesting that the project was in fact delayed by Covid-19.
Financing for Duyên Hải-2
In June 2017, a US$1,760 million loan agreement was closed to finance the 1200-MW project. The loans will be provided by China Exim Bank and ICBC.
Duyên Hải-3 (2 x 622.5 MW) and Duyên Hải-3 Extension (660 MW)
The 1,245-MW Duyên Hải-3 is a project of Electricity of Vietnam (EVN). In August 2011, the engineering, procurement, and construction (EPC) contract for Units 1 & 2 was awarded to a consortium of Chinese companies: Chengda Engineering, Dongfang Electric Corporation, the Southwest Electric Power Design Institute (SWEPDI) (a subsidiary of the China Energy Engineering Group), and Zhejiang Electric Power Construction. The project will cost $1.5 billion, and initial preparation work began in Sept. 2010.  Construction began in December 2012. Completion of Unit 1 is scheduled for Q4 2015, and Unit 2 for Q2 2016.
In November 2014, the EPC contract was signed between EVN and Sumitomo Corporation for construction of the 660-MW, $890 million coal-fired Unit 3 of Duyên Hải-3 (called "Duyên Hải-3 Extension"). Construction began in December, and is scheduled to be completed by June 2018.
In March 2015, the Japan Bank for International Cooperation (JBIC) approved a US$410 million loan for the Duyên Hải-3 expansion. Additionally, a group of 10 private banks - Sumitomo Mitsui Trust Holdings, Sumitomo Mitsui Banking Corporation, Gunma Bank, Joyo Bank, Hyakugo Bank, Iyo Bank, Chiba Bank, Bank of Fukuoka, Bank of Kyoto, and Hachijuni Bank - provided US$273.27 million in loans. Electricity of Vietnam Group (EVN) provided US$398.83 million in equity. The financing provided by the private banks was insured by Nippon Export and Investment Insurance.
Also in March 2015, Toshiba Corporation announced that it had been contracted to provide the turbine for Unit 3. In May 2015, Sumitomo contracted Black & Veatch as project technical lead in May 2015.
In April 2015, state utility Vietnam Electricity Group secured a syndicated loan worth US$214 million for Duyen Hai 3 from three domestic lenders: VietinBank, BIDV, and Vietcombank.
The revised Power Development Plan VII lists Phase 3 Unit 1 at 600 MW with a 2016 completion date, Unit 2 at 600 MW with a 2017 completion, and the Extension at 660 MW with a completion of 2019.
Unit 1 entered commercial operation in March 2017, and Unit 2 in April 2017. A completion date for the extension unit is unknown.
In March 2018 a fire broke out at the unit 3 construction site and destroyed 70% of a flue gas desulfurisation tower that was under construction.
In August 2018 an audit of the Duyên Hải-3 project found that EVN had underestimated the project's cost by 8.8 billion Vietnamese Dong (VND).
78 households were resettled to the nearby Mu U Resettlement area in 2010 to make room for the plant — but severe land erosion caused by the loss of sand dunes that have been removed to build the coal port means that the land that people have been resettled to now regularly becomes flooded. Local residents' protests to government officials have led to a plan to resettle these impacted residents again, to the Con Trung Resettlement Area. Many families in the area report that they are unable to grow anything without the protection of the sand dunes, and that their land has become worthless with the repeated flooding.
In May 2017, Politburo member Nguyễn Thiện Nhân visited the Duyen Hai plant. While stating its importance for the regional economy, he also acknowledged that local people were very concerned about the plant's environmental impact.
Since 2011, the communities around the Duyen Hai Power Station in Tra Vinh province of Vietnam’s Mekong Delta complained about the effect of the coal plants on their poor resettlements. In 2014, it was reported that many people living near the Duyen Hai coal plants “are unable to grow anything” because the coal plant has affected the sand dunes, increasing landslides and soil erosion. Multiple villagers are not earning enough money to sustain themselves and express great concern and anxiety over the effects of the coal plant.
Starting in 2015, villagers near the Duyen Hai power plant expressed worries over black smoke, slag dust, and discharging water into the sea. In 2017, after two years of environmental issues, villagers told Nguyen Thein Nhan, Secretary of Ho Chi Minh City Party Committee, about their concerns. He responded that the coal plant is still important to the electricity of the local Mekong Delta, but he acknowledged the environmental concerns.
In 2018, a report on how villagers still suffer from coal ash and dust from the Duyen Hai power plants was released by the Straits Times. Villagers expressed unhappiness over the rising air pollution and the government’s push for coal-fired power plants. Farmers and fisherman complain about lack of agriculture and produce. Environmental groups express concern over Vietnam’s advancement of coal plants, citing that Vietnam may become dependent on foreign, imported coal.
In May 2019, environmentalist groups, such as Unfriend Coal, released a report around how Talanx needs to stop investing and insuring coal plants, including the Duyen Hai power plant. The report explained that the coal plant resulted in “78 households being relocated to an area which regularly floods” and is bad for farming or fishing.
- Sponsor: Vietnam Electricity Group (Duyên Hải-1 and Duyên Hải-3); Teknik Janakuasa (Duyên Hải-2)
- Parent company: Vietnam Electricity Group, (Duyên Hải-1 and Duyên Hải-3); MMC Corporation Berhad (Duyên Hải-2)
- Location: Dan Thanh commune, Duyên Hải district, Trà Vinh province, Vietnam
- Coordinates: 9.58517, 106.52809 (exact)
- Duyên Hải-1: Operating
- Duyên Hải-2: Construction
- Duyên Hải-3, Units 1-2: Operating; Duyên Hải-3 Extension: Operating
- Gross Capacity: 4,305 MW
- Type: Supercritical/Subcritical
- In service:
- Coal Type: Bituminous
- Coal Source: Imported (Duyên Hải-2)
- Source of financing:
Duyen Hai-1: US$1.08 billion in debt from Société Générale, BNP Paribas, Bank of China, Industrial and Commercial Bank of China, and China ExIm Bank
Duyen Hai-3 expansion: US$410 million in debt from JBIC; US$273.27 million in debt from Sumitomo Mitsui Trust Holdings, Sumitomo Mitsui Banking Corporation, Gunma Bank, Joyo Bank, Hyakugo Bank, Iyo Bank, Chiba Bank, Bank of Fukuoka, Bank of Kyoto, and Hachijuni Bank; US$398.83 million in equity from Electricity of Vietnam Group (EVN)
Articles and resources
- "Fichtner Projects," Spinwell Global website, accessed November 2013
- Nhà máy nhiệt điện Duyên Hải 1, Nhà máy nhiệt điện Duyên Hải 2, and nhà máy nhiệt điện Duyên Hải 3, Wikimapia, accessed Apr. 2015.
- Construction Starts on Duyen Hai Seaport, Viêt Nam News, April 22, 2013.
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- Dong, Minh. Starting Pouring the First Concrete Batch for Gas Furnace of Duyen Hai 1 Thermal Power Plant, Trà Vinh provincial website, accessed Jan. 2014.
- The unit # 1 of the Duyen Hai 1 Thermal Power Plant (TPP) has synchronized to the National Power System, Vietnam Energy, 4 Feb. 2015.
- Tổ máy 2 của Nhà máy điện Duyên Hải 1 hòa vào lưới điện quốc gia, Vietnam+, 1 May 2015.
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