Nghi Son power station
|This article is part of the CoalSwarm coverage of Vietnam and coal|
Nghi Sơn power station is a 1,920-megawatt (MW) coal plant project under development in Thanh Hoa province, Vietnam.
The map below shows the plant's site, with Nghi Sơn 1 operating to the south and Nghi Sơn 2 under construction to the north. The site is in the Nghi Sơn Economic Zone, in Hải Hà commune, Tĩnh Gia district, Thanh Hoa province. Satellite photography between August 2018 and December 2018 shows the plant under construction.
The Nghi Sơn Economic Zone was created in 2005, and its future plans called for a power plant project totaling 1,800 MW.
Additionally, within the Nghi Sơn Economic Zone is the nearby Cong Thanh power station, which is also currently under development; several miles to the south, across the provincial border in Nghệ An province, is the Quynh Lap power station project site.
In June 2010, project sponsor Electricity of Vietnam awarded the construction contract for the 600-MW, $1.2 billion Nghi Sơn-1 coal-fired power plant to Japan's Marubeni Corporation. Construction began in July. The plant's first 300-MW unit went online in June 2013; the second unit came online in June 2014.
Financing for Nghi Sơn-1
In March 2007, the Japan International Cooperation Agency agreed to provide a US$772 million loan to the project.
In March 2013, the Vietnamese Ministry of Industry and Trade awarded a build-operate-transfer (BOT) contract for the 1,320 MW gross (1,200-MW net) Nghi Sơn-2 coal-fired power plant to a consortium consisting of Marubeni Corporation and Korea Electric Power Company (KEPCO). The plant is scheduled to come online in 2018; the two companies will then own and operate the plant for 25 years, after which ownership will revert to Electricity of Vietnam.
In August 2014, the project's developers and provincial authorities pushed to accelerate the plant's development process, in order to ensure that it would be able to be built on schedule. At that time, some financial, and contract details were still outstanding. As of April 2015, construction was expected to begin in August.
Land clearing began on the project in September 2015. The project did not begin actual construction at that date, however, as the project was still being negotiated.
In November 2016, Vietnam's Ministry of Industry and Trade approved a new build-operate-transfer (BOT) contract by Marubeni and KEPCO. The project would cost US$2.3 billion, with 50% coming from the two companies and 50% from a consortium of banks. Unit 1 was scheduled to come online by Sept. 2019, and Unit 2 by March 2020.
In November 2017, KEPCO finalized the US$2.3 billion (2.56 trillion won) contract with Electricity of Vietnam (EVN). KEPCO said it will break ground this year and complete the project in 2021. Once completed, KEPCO will operate it for 25 years before transferring it to the Vietnamese.
In July 2018, Doosan Heavy Industries & Construction Co. said it had commenced the delayed construction on the plant after it received an advanced payment of US$170 million for the US$1.6 billion deal it secured in 2014. The plant is planned for operation in 2022.
Planet satellite photos show physical construction began in late 2018.
In February 2020, the National Steering Committee on power development reported that construction was 52.35% complete and that Unit 1 was scheduled to be commissioned in February 2022 and Unit 2 in August 2022.
Financing for Nghi Sơn-2
In April 2018, the Japan Bank for International Cooperation (JBIC) agreed to provide US$560 million in loan funding for the 1200 MW Nghi Son 2 plant in Vietnam. The Export-Import Bank of Korea is also providing US$560 million, while a coalition of banks from Japan, Singapore, and Malaysia, comprising DBS Bank, Mizuho Bank, Maybank, Mitsubishi UFJ Financial Group, OCBC Bank, Shinsei Bank, and Sumitomo Mitsui Banking Corporation, are providing the remaining US$747.86 million. Malaysia's Maybank agreed to finance the project in April 2018 after the withdrawal that month of Standard Chartered. Marubeni and KEPCO are providing US$432 million in equity to the project.
On November 15, 2017, Japanese environmentalists released a statement opposing the Japanese and South Korean support for the Vietnamese Nghi Son power plant. They opposed for reasons of inefficient technology, air pollution, and premature deaths. The environmentalists included Friends of the Earth Japan, Kiko Network, Mekong Watch, and more.
In response to the financial support of the Nghi Son power plant by the Sumitomo Mitsui Financial Group Inc. (SMFG), environmental NGOs, such as 350.org Japan, Greenpeace Japan, and more, opposed their financial investments with a public statement. They identified the coal plant as having environmental and social risk, and urged SMFG to diverge its funding for the plan. In March 2018, environmental groups also wrote a petition urging the Japan Bank for International Cooperation (JBIC) to stop its financial investments into the Nghi Son power plant. They cited reasons such as the plant was not compatible with the Paris Agreement, the technology for the plant is against Japanese Government policy, and the plant would worsen Vietnamese air pollution. There were 61 groups from 23 countries that supported the revocation of JBIC’s finances in the Nghi Son power plant project.
In May 2019, human rights issues about the Nghi Son power plant were brought to attention by environmentalist groups. Specifically, Nghi Son power plant was allegedly approved with no consultation from the project-affected communities. According to the Vietnamese community organizations, the residents’ resettlement has been “unsatisfactory.” In October 2019, the Renewable Energy Institute released a report around the benefits of replacing coal power with renewable energy. Problems around health and environment from coal plants, including the Nghi Son power plant, were discussed.
- Sponsor: Electricity of Vietnam (Nghi Sơn-1); Marubeni Corporation & Korea Electric Power Company (KEPCO) (Nghi Sơn-2)
- Location: Hải Hà commune, Tĩnh Gia district, Thanh Hoa province, Vietnam
- Coordinates: 19.31581, 105.80026 (exact)
- Status: Operating (Nghi Sơn-1); Construction (Nghi Sơn-2)
- Gross Capacity: 1,920 MW (Nghi Sơn-1 Units 1 & 2: 2 x 300 MW; Nghi Sơn-2 Units 1 & 2: 2 x 660 MW)
- Type: Nghi Sơn-1: Subcritical; Nghi Sơn-2: Supercritical
- In service:
- Nghi Sơn-1 Unit 1: 2013
- Nghi Sơn-1 Unit 2: 2014
- Nghi Sơn-2 Unit 1: 2022
- Nghi Sơn-2 Unit 2: 2022
- Coal Type: Anthracite
- Coal Source: Hon Gai – Cam Pha coal mine, Quang Ninh province, Vietnam
- Source of financing:
- Nghi Son-1: US$772 million in debt from the Japan International Cooperation Agency
- Nghi Son-2: US$2,299.86 million in debt from the Export-Import Bank of Korea (Kexim), Japan Bank for International Cooperation (JBIC), DBS Bank (Singapore), Mizuho (Japan), MUFG (Japan), SMBC (Japan), Shinsei Bank (Japan), OCBC (Singapore), Maybank (Malaysia); US$432 million in equity from Marubeni and KEPCO
Articles and resources
- Trung Tâm Nhiệt điện Nghi Sơn - NS1, Wikimapia, accessed Apr. 2015.
- New Nghi Son Zone Calls for Investment, Viêt Nam News, Nov. 28, 2006.
- Construction of Nghi Son 1 Thermoelectric Plant Begins in Vietnam, PennEnergy, July 7, 2010.
- First Turbine of Nghi Son 1 Thermoelectric Plant to Be Operational in June, TalkVietnam, June 9, 2013.
- Nhiệt điện Nghi Sơn 1 đã sẵn sàng vận hành thương mại, Thanh Nien Online, 2 May 2014.
- "List of Coal Power Plants funded by JBIC, NEXI and JICA (2003-2019)" (PDF). 2019.
- Ministry of Industry and Trade Awards Nghi Son 2 Thermal Power Plant Contract to Marubeni – KEPCO Consortium, Vietnam Ministry of Industry & Trade website, March 25, 2013.
- Receipt of Notification of Award for Vietnam, Nghi Son 2 Coal-Fired Power Project, Marubeni Corporation press release, March 25, 2013.
- Đẩy nhanh tiến độ Dự án Nhiệt điện Nghi Sơn 2, Báo Đầu tư, 23 Aug. 2014.
- Đồng chí Lê Hồng Anh, Ủy viên Bộ Chính trị, Thường trực Ban bí thư thăm khu kinh tế Nghi Sơn, TTV, 9 Apr. 2015.
- "Construction starts at Nghi Son 2 coal-fired power plant," Talk Vietnam, September 18, 2015
- Marubeni bắt tay KEPCO làm nhiệt điện Nghi Sơn 2 trị giá 2,3 tỷ USD, VietNam Finance, 8 Nov. 2016.
- "KEPCO to build coal-fired power plant in Vietnam," Biz and Tech, Nov 9, 2017
- "Doosan Heavy Industries begins construction of thermal power plant in Vietnam," Pulse News, 2018.07.26
- Tình hình thực hiện các dự án điện theo hình thức BOT ở Việt Nam, Feb. 14, 2020
- "Project Finance and Political Risk Guarantee for Nghi Son 2 Coal-Fired Power Generation Project in the Republic of Vietnam," JBIC, Apr 13, 2018
- "Nghi Son 2 (1200 MW)," Market Forces, accessed April 2018
- "Preview of Nghi Son 2 Coal-Fired Power Plant (1200MW) IPP | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-09-23.
- Robin Hicks, 1,200 megawatt Vietnam coal plant gets funding, but Standard Chartered pulls out over climate policy conflict, Eco-Business, Apr. 19, 2018
- “No Coal! Go Green!”, Friends of the Earth Japan, November 15, 2017.
- “Environmental NGOs respond to statement by Sumitomo Mitsui Financial Group CEO on restricting coal fired power financing”, Banktrack, 2018.
- “Urgent Petition”, Friends of Earth Japan, March 13, 2018.
- “Press Release”, Friends of Earth Japan, April 27, 2018.
- “Talanx: Seriously Clearing Up or Silently Continuing Support for Coal?”, Urgewald, May 2019.
- “Renewable Energy to Replace Coal Power in Southeast Asia”, Renewable Energy Institute, October 2019.