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NS-250 - Biogas for onsite power generation for medium/large pig Farms

Viet Nam

NAMA Seeking Support for Implementation

  • A Overview
    • A.1Party
      A.2Title of Mitigation Action
      A.3Description of mitigation action

      General objective: To develop a favourable environment for use of biogas power at pig farms that enhance sustainable development in medium and large-scale farms in rural areas and contribute to reduce GHG emissions.

      Specific objectives:

      • To develop a policy and institutional framework to incentivize investment in commercial biogas-electricity generation at pig farms in Viet Nam.
      • To enhance the development of biogas-electricity generation at pig farm in order to reduce GHG emission and contribute to agricultural sector target which described in “National Climate Change Strategy of Viet Nam: To reduce 20% of GHG emission from agricultural sector after each 10 year”.
      • To improve pig farm capacity on affection abiding national regulatory standard for waste treatment.



      A.6Type of action

      A.7Greenhouse gases covered by the action

  • B National Implementing Entity
    • B.1.0Name
      B.1.1Contact Person 1
      B.1.5Contact Person 2
      B.1.9Contact Person 3
      Add Additional Entity
  • C Expected timeframe for the implementation of the mitigation action
    • C.1Number of years for completion
      C.2Expected start year of implementation
  • D Currency
    • D.1Used Currency
      Conversion to USD: 1
  • E Cost
    • E.1.1Estimated full cost of implementation
      Conversion to USD: 239,600,000
      E.1.2Comments on full cost of implementation

      Assuming that 50% of pig farms will implemented the biogas NAMA in 2020, so there will be about 2150 farms installed biogas power generation system with total capacity in 2020 is 215 MW (2150 farms x 100 kw/farm).

      Investment for biogas power generation system of one farm, including for buying power generation machinery and equipments; cost of installation and O&M, etc. is about USD 100,000/one system for one farm (According to the quotation of  BIGWN.Lt.Co.). Therefore, total investment cost of biogas electricity generation system for 2150 farms is 215 million USD.

      Finance for the biogas NAMA will be received from three sources: International support, State contribution and Farm owner’s capital with the total of USD 239.6M.  These sources are divided to three types of funding: (1) Grant for program implementation; (2) Investment cost for 2150 systems; and (3) Loan insurance.

      E.2.1Estimated incremental cost of implementation
      Conversion to USD: 14,000,000
      E.2.2Comments on estimated incremental cost of implementation

      With 2150 farms which install biogas power generator in 2020, total estimated electricity generation capacity is 215 MW, the expected GHG reduction to 2020 from power generation is about 2.2 million ton of CO2e. The incremental cost of GHG reduction is about 14-15 million USD (price for GHG reduction is $6-8/per ton of CO2e). 

  • F Support required for the implementation the mitigation action
    • F.1.1Amount of Financial support
      Conversion to USD: 196,600,000
      F.1.2Type of required Financial support

      F.1.3Comments on Financial support

      The total financial support from international donors are $100.6 M including $86M for concessional loan, $10M for loan insurance and $4,6 M for capacity building.

      The total financial support from Government are $96 M including $86 M for concessional loan and $ 10 M for loan insurance.

      F.2.1Amount of Technological support
      F.2.2Comments on Technological support

      Technology investment cost of 2150 biogas electricity generation system is USD 215 M:

      - 40% of total investment cost  (USD 86 M) come from concessional loan support by international donors.

      - 40% of total investment cost (USD 86 M) come from concessional loan support by Government-

       - 20% of total investment cost (USD 43M) come from farm owners (private investors)

      F.3.1Amount of capacity building support
      Conversion to USD: 4,600,000
      F.3.2Type of required capacity building support

      F.3.3Comments on Capacity Building support
        • Training
        • A help desk to support biogas power generation
        • Support for grid connection
        • Raising awareness
        • Feasibility studies.
        • Three demonstration models.
        • MRV.
  • G Estimated emission reductions
    • G.1Amount
      G.3Additional imformation (e.g. if available, information on the methodological approach followed)
  • H Other indicators
    • H.1Other indicators of implementation

      GHG emission reduction impacts: GHG emission reduced

      Sustainable development impacts:

      • Number of jobs created by the program
      • Impact on the balance of payments
      • Increasing pig farm revenues by selling the electricity to national grid
      • Increasing pig farm revenues by reducing the use of conventional electricity.
  • I Other relevant information
    • I.1Other relevant information including co-benefits for local sustainable development

      Economic benefits:

      • National energy self-sufficiency is increased with the use of cheap, renewable and indigenous energy resources, which correspondingly decreases dependence on imported fossil fuel and a reduction in negative impacts of fuel imports on the nation’s balance of payments;
      • Incremental reduction on the need for new build power plants at a national level;
      • Increasing the income of pig farm through selling the electricity from biogas power generation;
      • Improving on diversify the source of the energy supply through biogas production system. The effort will substitute biogas energy for fossil fuel, reducing the use of coal. It will also help to ease power shortages.

      Social benefits:

      • Creating employment opportunities for the operation and maintenance of electricity generation systems for the communities, especially for farmers around the farms’ area. Creating opportunities for expansion of business investors in small type biogas power generator;
      • To help raising awareness of the community about sanitation, clean technology, greenhouse gas, and renewable energy;
      • Protecting human health and the environment, demonstrate a sustainable model to solve animal manure pollution problems for other livestock operations, facilitate agricultural restructuring, and increase farmers’ incomes;
      • Establishing a positive model of animal manure management practice for other animal operations. NAMA will apply new, advanced, and environmental friendly technologies in treating animal wastes and associated utilization, which can be replicated on other livestock farms, dramatically reducing livestock-related GHG emissions and providing the potential for new sources of revenue and green power.

      Environmental benefits:

      • Global environmental protection is supported by the capture of fugitive GHGs’ specifically methane, and the reduction in energy related emissions;
      • A healthier and safer work place is developed with improvements in local air quality, and control of highly combustible methane emissions;
      • Considerable reduction in odor from the existing treatment facility that currently affects local communities;
      • Control of leach ate that would otherwise pollute groundwater resources.
  • J Relevant National Policies strategies, plans and programmes and/or other mitigation action
    • J.1Relevant National Policies
      • Decision 432/QD-TTg dated 12 April 2012 by Prime Minister on approving the Sustainable Development Strategy in Viet Nam for the period 2011-2020.
      • Decision No. 2139/QD-TTg dated 05 December 2011 by Prime Minister on approving the National Strategy on Climate Change.
      • Decision 1393/QD-TTg dated 25 September 2012 by Prime Minister on approving the National Green Growth Strategy.
      • Decision No. 1775/QD-TTg dated 21 November 2012 by Prime Minister on approving the Plan of Greenhouse Gases Management, Management of Carbon Trading Activities to the World Market.
      • Decision 543/QĐ-BNN-KHCN dated 23 March 2011 by Minister of Agriculture and Rural Development on issuing action plan of Agriculture and Rural Development sector to cope with climate change in the period of 2011-2015 and projection to 2050.
      • Decision No 3119 /QD-BNN-KHCN dated 16 December 2011 by Minister of Agriculture and Rural Development on approving the Plan of GHG emission in the agriculture and rural sector to 2020.
      J.2Link to other NAMAs
  • K Attachments
  • L Support received
    • L.1Outside the Registry
      L.2Within the Registry
      Support providedSupportTypeAmountCommentDate
      No records to display.
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