Dohwa Engineering Company Limited has acquired a permission to conduct a pre-feasibility study on a US$400 million project to develop a biomass energy plant in the central province of Quang Binh, local media reported Wednesday.
The 100-MW plant will produce electricity from plant-based materials such as scrap wood and forest debris including leaves and branches, news website Dan Tri said, citing the company's plan.
It is estimated that when the plant goes into operation in 2020, it will handle around 500,000 tons of materials a year.
Dohwa expects the study to be completed this year and will apply for licenses next year. Construction will start in 2018 and finish in two years, according to the website.
Vietnam is on course to have an installed power capacity of 75,000 MW by 2020, with 46.8 percent at coal plants, 24 percent at gas-fired plants and 19.6 percent hydropower.
Renewables will make up 4.5 percent and nuclear power plants, 2.1 percent.