Na Duong power station

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Na Duong power station is an operating power station of at least 100-megawatts (MW) in Tu Doan, Na Duong, Loc Binh, Lang Son, Vietnam with multiple units, some of which are not currently operating.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Na Duong power station Tu Doan, Na Duong, Loc Binh, Lang Son, Vietnam 21.6975, 106.9765 (exact)

The map below shows the exact location of the power station.

Loading map...


Unit-level coordinates (WGS 84):

  • Phase 2 Unit 1: 21.6975, 106.9765
  • Phase 1 Unit 1, Phase 1 Unit 2: 21.698111, 106.975852

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Phase 1 Unit 1 operating coal - lignite 50 subcritical 2004
Phase 1 Unit 2 operating coal - lignite 50 subcritical 2004
Phase 2 Unit 1 pre-permit coal - anthracite 110 circulating fluidized bed 2026

Table 3: Unit-level ownership and operator details

Unit name Owner
Phase 1 Unit 1 Vietnam National Coal and Mineral Industries Holding Corp Ltd (Vinacomin) [100.0%]
Phase 1 Unit 2 Vietnam National Coal and Mineral Industries Holding Corp Ltd (Vinacomin) [100.0%]
Phase 2 Unit 1 Vietnam National Coal and Mineral Industries Holding Corp Ltd (Vinacomin) [100.0%]

Background

Na Dương-1

Na Dương-1, a two-unit, 100-MW coal-fired power plant owned by Vinacomin, began construction in April 2002, and was completed in 2005. The mine-to-mouth plant uses coal from the nearby Na Dương coal mine.[1]

As of October 2023, the Na Dương coal mine was experiencing bank erosion. Should Na Dương-2 be commissioned, Na Dương-1 reportedly risked being too close to the mine's edge due to necessary mine expansions to supply the power stations.[2]

Na Dương-2

In December 2009, Vinacomin signed a memorandum of understanding with Japan's Marubeni Corporation for the construction of a second 100-MW phase at Na Dương.[3]

As of early 2013, Vinacomin stated that Na Dương-2 is still part of their business plan, and again in January 2014. It is unclear whether this unit is still in development or under construction.[4][5]

In October 2014, managers of the coal plant stated that they planned to start construction on the second phase by the end of 2015.[6]

Construction was approved and an inauguration ceremony for construction was held in October 2015.[7][8] The unit would cost $200 million.[9]

As of May 2017, Vinacomin had prepared the site for construction, and was reviewing applications for an engineering, procurement, and construction (EPC) contract.[10]

In September 2018 it was reported that development of the project had been further delayed while Vinacomin negotiated with Electricity of Vietnam (EVN) over electricity prices.[11] In June 2019 the completion date was delayed to 2022 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7).[12] Despite the initial groundbreaking ceremony in October 2015 there have been no reports of actual construction, and satellite photography from Planet does not show construction occurring between November 2019 and May 2020.

In April 2020 the National Steering Committee on Electricity Development was reported to have identified a lack of financing as the main barrier to the project's development. As Vietnam's finance ministry has not agreed to provide Na Dương-2 with a state-backed guarantee, Vinacomin has been forced to seek financing from domestic and foreign creditors. It was reported that domestic banks have not shown any interest in funding the project.[13]

In April 2021 a consortium formed by Dongfang Electric and Vietnam Baiteng Construction Co., Ltd. signed a contract with Vinacomin to build the plant.[14] The September 2021 draft of the Power Development Plan 8 (PDP8) gives a commissioning date of 2021-2025 for the plant.[15]

On July 4, 2022, the Ministry of Industry and Trade appeared to provide an update on the draft PDP. The document’s list of major power projects planned for 2021-2030 (PDF pages 18-20) includes the project. The project's feasibility study had been approved, and the capital had been arranged. However, a contractor had not yet been selected.[16]

In November 2022, Unit 3 was mentioned in a sustainable investment guide as an "outstanding coal-fired power" project.[17]

In May 2023, Vietnam officially approved the updated power development plan (PDP8). Under this plan, the country will domestically generate 20% of its electricity needs with coal by 2030 and fully phase out coal-fired power stations by 2050. The plan involved increasing energy generation using coal to a peak of 30 GW and replacing all other outstanding coal projects with LNG or renewables. PDP8 listed that Na Duong II was under construction and would be completed.[18] However, Planet imagery suggested that the project was not yet progressing with construction work.

In June 2023, TKV Electricity Corporation announced that, following two failed bidding periods, bidding for a 3,315 billion VND contract package would again be opened until August 23, 2023.[19]

In August 2023, the bid closing date was extended to September 22, 2023. TKV stated that the period would not be extended any further, as target commercial operation remained 2026.[20]

On September 22, 2023, it was reported that three contractors had submitted bids for the EPC package. All three bids involved joint ventures with Chinese companies:[21]

  • AMECC Mechanical Construction Joint Stock Company and Wuhan Environmental Protection Company
  • Construction Corporation No. 1 and DR.AZ Group Co., Ltd.
  • Vietnam Oil and Gas Construction Joint Stock Corporation, RUNH and Fecon Joint Stock Company


In December 2023, Construction Corporation No. 1 and DR.AZ Group Co., Ltd. were officially awarded the 3,315 billion VND EPC contract. The ratio of the joint venture was 85% to 15% respectively. The contract's implementation period was 30 months.[22] DR.AZ Group Co., Ltd. was a Chinese company based in Shandong.[23]

As of March 2024, project developers were reportedly aiming to start construction on Na Dương-2 in April 2024.[24]

Environmental Impact

According to local reporting from April 2022, the power station built an environmental treatment system and slag barriers without a land lease in the period of 2013-2015. The entire impacted area was around 13 hectares. A 9.64 hectare area was given site clearance in 2020, which was then used for ash storage and waste dumping. However, the reporting stated that the environmental treatment system was still located on unallocated land. The Department of Planning and Investment was investigating the claims further.[25]

A December 2022 article outlined impacts from the Na Duong power station reported by the local community. This included reduced rice cultivation, noise pollution, excessive dust, and adverse health conditions. In August 2022, the Lang Son province Department of Natural Resources and Environment conducted inspections and surveys on the issue.[26]

Just Energy Transition Partnership

In December 2022, Vietnam and a coalition of countries led by the European Union and the UK concluded a Just Energy Transition Partnership agreement with US$15.5 billion to fund the development and implementation of a plan to cap and then phase out unabated coal generation. The agreement proposed reducing Vietnam’s coal fleet capacity from 37 GW to 30.2 GW by 2030 and a path to “phasing out unabated coal-fired power generation after those dates.” As of January 2023, the Global Coal Plant Tracker estimated Vietnam had 24.7 GW in coal capacity, with a further 6.1 GW under construction. The deal noted a detailed plan would be finalized by November 2023 to guide the long-term transition plan.[27][28][29]

The project was not presumed shelved given its status as "under construction or in preparation" in various 2022 presentations.

Articles and Resources

References

  1. Duc Thao, Nguyen. Development Strategy and the Application of Circulating Fluidized Bed Combustion in Power Generation Projects of Vietnam National Coal Corporation (VINACOAL)," Electricity Supply Industry in Transition, Jan. 14-16, 2004, pp. 16/25-6.
  2. Còn 3 câu hỏi khó trong dự án Nhiệt điện Na Dương 2, Năng lượng Việt Nam, Oct. 31, 2023.
  3. Vinacomin Signs MoU With Marubeni for Coal-Fired Power Plant, Unibros, Dec. 25, 2009.
  4. Coal Industry Takes Austerity Measures to Fulfill Plan, Vietnam Breaking News, July 11, 2013.
  5. Vinacomin to spend VND32 trillion on major projects in 2014, Vietmaz, 17 Jan. 2014.
  6. Giải phóng mặt bằng dự án NĐ Na Dương 2: Vẫn khó, Nangluong Vietnam, 9 Oct. 2014.
  7. "Work starts on 192-million-USD thermal power plant in Lang Son," Vietnam Plus, Oct 16, 2015
  8. Work starts on over US$192 million thermal power plant in Lang Son, nhandan.org, Oct. 16, 2015
  9. Kiến nghị lựa chọn nhà thầu EPC Dự án nhiệt điện Na Dương 2, Nang Luong Viet Nam, 1 Jan. 2016.
  10. Tổng Công ty Điện lực - TKV triển khai nhiều dự án quan trọng, Vinacomin press release, 17 May 2017.
  11. Speeding up the progress of Na Duong II Thermal Power Project, Vinacomin, Sept. 18, 2018
  12. Implementation of Power Projects iIn the Revised Power Development Plan 7, Ministry of Industry and Trade, Republic of Vietnam, Jun. 4, 2019
  13. Implementation of power source projects implemented by Vinacomin, Năng lượng Việt Nam Online, Apr. 27, 2020
  14. 东方电气再获越南火电总承包项目, weixin.qq, Apr. 21, 2021
  15. 2021 Draft PDP 8, vepg.vn, accessed 12-3-2021
  16. “Draft National Power Development Plan VIII,” MOIT, July 4, 2022
  17. “Navigating Vietnam 2023,” VNDirect, November 22, 2022
  18. Approving the national electricity development plan for the period of 2021-2030, with a vision to 2050, Prime Minister of Vietnam, May 16, 2023
  19. Dự án Nhà máy Nhiệt điện Na Dương II: Cửa sáng cho gói thầu EPC gần 3.315 tỷ đồng, ĐẤU THẦU, June 22, 2023
  20. Gói thầu EPC 3.300 tỷ đồng Dự án Nhiệt điện Na Dương II: Cơ hội mở cho nhà thầu có năng lực, ĐẤU THẦU, August 31, 2023
  21. 3 nhà thầu cạnh tranh gói thầu EPC 3.300 tỷ đồng tại Nhà máy Nhiệt điện Na Dương II, ĐẤU THẦU, September 22, 2023
  22. Ký hợp đồng EPC dự án Nhà máy Nhiệt điện Na Dương 2, Năng lượng Việt Nam, December 30, 2023
  23. DRAZ Group Co.,Ltd., 迪尔集团有限公司, accessed January 5, 2024
  24. Chuẩn bị khởi công dự án Nhà máy Nhiệt điện Na Dương 2, Năng lượng Việt Nam, March 12, 2024
  25. “Công ty Nhiệt điện Na Dương “vượt rào” xây dựng công trình 13 ha?,” Dan toc va Phat trien, April 22, 2022
  26. “Bãi mỏ than Nhiệt điện Na Dương – TKV khiến người dân không thể canh tác lúa,” Kinhte Moitruong, December 29, 2022
  27. Viewpoint: Cautious outlook for Vietnam’s coal imports, Argus Media, December 20, 2022
  28. Political declaration on establishing the Just Energy Transition Partnership with Viet Nam, Governments of the Socialist Republic of Viet Nam, & International Partners Group, December 14, 2022
  29. Unpacked: Vietnam’s US$15.5 Billion JETP Agreement, Vietnam Briefing, December 19, 2022

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.