Vietnam's VICEM Ha Tien awards EPC contract for waste heat project at Kien Luong cement plant

VICEM Ha Tien Cement has formally entered into an engineering, procurement, and construction (EPC) contract for the "Waste Heat Recovery Power Generation" project at its Kien Luong cement plant, according to an Oct. 21 statement on the Vietnam Cement Association's website.

The agreement, signed on Oct. 20 with a consortium comprising Sinoma International Engineering, Viet Industrial Construction and Installation, and Viet Tuan Trading Construction Architecture, marks the commencement of the project's implementation phase. The initiative aims to harness residual heat from the clinker production line to generate electricity; a move that supports energy conservation, carbon emissions reduction, and sustainable development in the cement sector.

Under the EPC framework, the consortium will be responsible for the project's design, equipment and material supply, construction, and installation of the waste heat power generation system.

The EPC package is valued at Dong 198.79 billion ($7.5 million), which is Dong 31.26 billion lower than the approved budget of Dong 230.05 billion. The project is set to be completed within 16 months under a lump-sum contract structure.

The Kien Luong waste heat recovery power generation project has a total investment capital of Dong 266.67 billion, consisting of nine work packages.

Beyond cutting electricity costs, the system is expected to lower CO2 emissions, reduce dust and heat pollution, and align with the goals of Vietnam's Construction Materials Development Strategy 2021-2030, with a vision to 2050.

Once operational, the new system will meet a considerable portion of the plant's internal electricity demand, enhancing energy efficiency and improving cost competitiveness for VICEM Ha Tien.

Platts, part of S&P Global Commodity Insights, assessed cement (ASTM type I) FOB Vietnam at $35.50/mt on Oct. 16, slightly lower from $35.75/mt the previous week.

Cement clinker FOB Vietnam was assessed at $30.50/mt, up from $29.75/mt FOB the previous week.