Nam Dinh power station
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Nam Dinh power station is a power station in Hai Ninh, Hai Hau, Nam Dinh, Vietnam with multiple units of varying statuses, none of which are currently operating. It is also known as Hai Hau power station.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Nam Dinh power station | Hai Ninh, Hai Hau, Nam Dinh, Vietnam | 20.1012, 106.21355 (approximate) |
The map below shows the approximate location of the power station.
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | CHP | Start year |
|---|---|---|---|---|---|---|
| 1 | Announced[1][2][3] | fossil gas: LNG[1][2][3] | 600[1][2][3] | unknown | not found | – |
| 2 | Announced[1][2][3] | fossil gas: LNG[1][2][3] | 600[1][2][3] | unknown | not found | – |
| 3 | Announced[1][2][3] | fossil gas: LNG[1][2][3] | 600[1][2][3] | unknown | not found | – |
| 4 | Announced[4][1][2][3] | fossil gas: LNG[1][2][3] | 600[1][2][3] | unknown | not found | – |
| Phase 1 Unit 1 | Shelved | coal: anthracite | 600 | unknown | – | 2026 (planned) |
| Phase 1 Unit 2 | Shelved | coal: anthracite | 600 | unknown | – | 2026 (planned) |
| Phase 2 Unit 1 | Cancelled | coal: unknown | 600 | unknown | – | – |
| Phase 2 Unit 2 | Cancelled | coal: unknown | 600 | unknown | – | – |
CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| 1 | Taekwang Vina Industry JSC [100%][1][2][3] | Taekwang Group |
| 2 | Taekwang Vina Industry JSC [100%][1][2][3] | Taekwang Group |
| 3 | Taekwang Vina Industry JSC [100%][1][2][3] | Taekwang Group |
| 4 | Taekwang Vina Industry JSC [100%][1][2][3] | Taekwang Group |
| Phase 1 Unit 1 | Taekwang Vina Industry JSC | Taekwang Group |
| Phase 1 Unit 2 | Taekwang Vina Industry JSC | Taekwang Group |
| Phase 2 Unit 1 | Taekwang Vina Industry JSC [100%] | Taekwang Group |
| Phase 2 Unit 2 | Taekwang Vina Industry JSC [100%] | Taekwang Group |
Background
In Dec. 2013, Nam Định provincial authorities said they would support the construction of a 2,400-MW coal plant by the Korean Taekwang Vina Company, a subsidiary of the Taekwang Group. The plant would cost $4.5 billion, and is slated to begin construction in 2014; two units, with 1,200 MW capacity, would come online in 2017, and the other two would come online in 2021.[5] Site preparation work has begun.
In June 2014, Taekwang signed a joint agreement with Saudi company First National Operation & Maintenance Co. (NOMAC), a subsidiary of ACWA Power, to build the first 1,200-MW, $2 billion phase of the plant. POSCO Engineering & Construction was selected as the preferred engineering, procurement, & construction (EPC) bidder.[6][7]
In June 2015, Vietnam's prime minister pushed the project forward, directing the Ministry of Industry & Trade to aid the Taekwang-ACWA consortium in lining up investors for the project.[8] The project would use coal provided by state coal mining group Vinacomin. Vietnam is planning to exploit its Red River coal basin, which is estimated to have reserves of over 230 million tonnes.[9]
In January 2016, the Ministry of Industry & Trade signed a build-operate-transfer (BOT) agreement with the Taekwang-ACWA consortium.[10] In April 2017, Vinacomin reached a coal supply agreement with the project's sponsors.[11] As of November 2016, construction was scheduled to begin in June 2017.[12]
In July 2017, the Nam Định 1 project received an investment certficate, making it the seventh foreign-invested build-operate-transfer (BOT) project to be licensed in the country.[13]
In June 2018, it was reported ACWA Power was working with China Energy Engineering’s China Gezhouba Group International Engineering on the project.[14] China Gezhouba became the project's EPC contractor, despite the 2013 announcement stating that POSCO would be the EPC contractor.[15]
In September 2020, Tran Van Chung, Standing Deputy Secretary of the Nam Dinh Provincial Party Committee, announced that after eleven years of planning that a first step toward building the plant would be taken with the construction of a road in the coastal economic zone where the plant would be located. Chung also announced that development of the coal plant itself would begin in October or November.[16]
Units 1-2 delayed, units 3-4 cancelled
According to the Revised Power Development Plan VII (2016), the status of the project is as follows:[17]
- Phase I, Unit 1 - 600 MW - Planned with Investor identified (i.e. pre-permit development) - 2020
- Phase I, Unit 2 - 600 MW - Planned with Investor identified (i.e. pre-permit development) - 2021
- Phase II, Unit 1 - 600 MW - Cancelled
- Phase II, Unit 2 - 600 MW - Cancelled
In June 2019, the completion date for Unit 1 was delayed to 2024 and the completion date for Unit 2 was delayed to 2025 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7).[18] In February 2020 the National Steering Committee on power development stated that Unit 1 was scheduled to be commissioned in Q1 2025 and Unit 2 in Q3 2025.[19] In October 2020, at a conference on land acquisition, compensation, assistance in land clearance, and resettlement for the implementation of the project, a representative of the Nam Dinh 1 Thermal Power Co., Ltd described how the project investor was planning to officially sign the BOT contract with the Government of Vietnam by early November 2020. Following this, the investor would transfer all the funding to implement the project, including compensation money for the local community. Construction of the project was estimated to start by the end of 2020.[20]
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. At this time, contracts were under negotiation and a target completion date was unknown.[21]
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 Nam Dinh I among the projects that were "behind schedule, facing difficulties in changing shareholders, arranging capital". The proposal was not officially cancelled, but it must either move forward by June 2024 or be terminated.[22]
According to reports from May 2023, ACWA Power had withdrawn from the project.[23] ACWA Power's 2022 annual report, published in May 2023, stated that the company had transferred its shares to "a new partner."[24]
In June 2023, the general director of Taekwang Power Holdings stated that despite a decade of delays, the company would be continuing to pursue the project. Construction had reportedly not begun because of financial problems and leadership changes. The company stated that pre-construction procedures would be completed by the end of 2023. The power station was still planned for two 600 MW units, a $2 billion investment and supplying power to the Nam Dinh province.[25]
Proposed pivot to LNG
In October 2023, Vietnam Gulf of Gulf Energy Development Group approached Taekwang Power about the possibility of cooperating on the development of Nam Dinh power station using LNG as the fuel rather than coal.[26]
In November 2023, the power station proposal was described as "at risk" of termination (Google translate). The proposed co-investment between Gulf Group and Taekwang Power would reportedly be favorable, as proactively pivoting to a gas-fired power station would be more attractive and aligned with Vietnam's long term energy planning.[27] The Nam Dinh Provincial People's Committee had reportedly debated the proposal and was in support of the pivot.[28]
In March 2024, the planned pivot to LNG was still in development. Nam Dinh Province and Gulf Energy reportedly hoped to sign a new Memorandum of Understanding for the project.[29] The People's Committee of Nam Dinh Province requested that the Ministry of Industry and Trade support the development of the power station using LNG.[30] The power station was presumed to be shelved as a coal plant, as it was expected to move forward using LNG.
In June 2024, a Văn phòng Chính phủ (Government Office) document regarding PDP8 implementation called for Nam Dinh I investors to "speed up project implementation progress" (Google translate). The letter was dated ten days before the June 30, 2024 deadline for coal-based projects facing difficulty in deploying.[31]
Financing
The Investment Certificate for the power station was issued in January 2017. The sponsors will finance the project on a 75:25 debt to equity ratio – seeking US$1.56 billion in debt. Lenders in discussion for funding the bank include the export credit agencies Export–Import Bank of Korea (Kexim) and Korea Trade Insurance Corporation (K-sure), and the banks Mizuho Financial Group (Lead Arranger), DBS, DZ Bank, Korea Development Bank, MUFG, and Standard Chartered. Financial close is expected in mid-2018.[32]
In August 2018 Project Finance International reported the sponsors were looking to Chinese banks to fund the plant.[33] In September 2018 Standard Chartered announced that it would no longer finance new coal-fired power plants.[34]
In December 2019 ACWA Power and Taekwang Power signed a $1.89 billion Sinosure-backed loan to finance construction of the $2.52 billion project.[35] IJGlobal has reported that five Chinese banks – Bank of China, China Construction Bank, China Development Bank, China Export-Import Bank and China Minsheng Bank – will provide the debt.[36] There has been speculation that Agricultural Bank of China and Industrial and Commercial Bank of China may also be involved in the finance deal. As of November 2020, the project had not reached financial close.
An October 2021 report by GreenID listed the Nam Dinh power station as one of 18 coal-fired power stations in Vietnam that was struggling to secure financing. Given that China, Japan, and South Korea have all committed to stop financing new coal-fired power stations, it will be extremely difficult for any of these projects to secure funding in the future.[37] In March 2022, Report No. 1562 by the Office of the Government of Vietnam stated that the plant was financially troubled.[38]
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.[39][40][41]
Public opposition
About 300 households are being resettled for the project. Local people have expressed concerns about the effects of pollution on farming and fishing in the area.[42]
Articles and Resources
References
- ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 https://web.archive.org/web/20240120033321/https://vietnamenergy.vn/gulf-thailand-proposed-to-invest-in-the-power-gas-center-and-lng-terminal-in-nam-dinh-31683.html. Archived from the original on 20 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 https://web.archive.org/web/20240120033426/https://diendandoanhnghiep.vn/nha-may-nhiet-dien-nam-dinh-1-co-nguy-co-bi-dua-ra-khoi-quy-hoach-254108.html. Archived from the original on 20 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12 3.13 3.14 3.15 https://vietnamnet.vn/du-an-nha-may-nhiet-dien-hon-2-ty-do-o-nam-dinh-muon-chuyen-thanh-dien-khi-2213779.html.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240610172124/https://netzero.vn/en/nam-dinh-to-change-2-billion-coal-fired-power-project-to-gas-fired/. Archived from the original on 10 June 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ $4.5B Thermal Plant Takes Shape, Viêt Nam News, Dec. 17, 2013.
- ↑ Saudi’s ACWA Signs $2bn Deal To Develop Power Plant In Vietnam, Gulf Business, 19 June 2014.
- ↑ ACWA Power signs Joint Development Agreement with Taekwang Power Holdings from Korea for the Nam Dinh 1 Coal Fired power project in Vietnam, ACWA Power press release, 19 June 2014.
- ↑ The Mechanisms for implementing Nam Dinh Thermal Power Plant Project, Vietnam Energy, 30 June 2015.
- ↑ David Rogers, Vietnam awards $2.2bn coal plant to Saudi-Korean team, Global Construction Review, 20 January 2016
- ↑ Trên 2 tỷ USD đầu tư Nhà máy Nhiệt điện Nam Định 1, Bao Moi, 22 Jan. 2016.
- ↑ Vinacomin làm việc với Ban Quản lý Nhà máy Nhiệt điện Nam Định 1, Imsat.vn, 19 Apr. 2017.
- ↑ Đồng chí chủ tịch UBND tỉnh đã tiếp và làm việc với bà Park So Hyun - Tổng Giám đốc điều hành Tập đoàn taekwang- Hàn Quốc, chủ đầu tư dự án nhà máy Nhiệt điện Hải Hậu. Nam Dinh TV, 29 Nov. 2016.
- ↑ $2.3-billion Nam Dinh power plant making headway, Vietnam Breaking News, 3 July 2017
- ↑ China Energy Engineering Strikes Cooperative Deal With UAE Counterpart, Yicai Global, June 12, 2018
- ↑ Nam Dinh 1 Thermal Power Plant, NS Energy, Accessed Oct. 2021
- ↑ Nam Định: Chuẩn bị khởi công nhà máy nhiệt điện than hơn 2 tỷ USD, Baotai Nguyen & Moi Trung, Sep. 14, 2020
- ↑ DANH MỤC CÁC DỰ ÁN NGUỒN ĐIỆN VÀO VẬN HÀNH GIAI ĐOẠN 2016 - 2030, Ban hành kèm theo Quyết định số 428/QĐ-TTg ngày 18 tháng 3 năm 2016 của Thủ tướng Chính phủ (LIST OF POWER PROJECT IN OPERATION PERIOD 2016 - 2030, Issued together with Decision No. 428 / QD - TTg of March 18, 2016 by the Prime Minister)
- ↑ Implementation of Power Projects In the Revised Power Development Plan 7, Ministry of Industry and Trade, Republic of Vietnam, Jun. 4, 2019
- ↑ Tình hình thực hiện các dự án điện theo hình thức BOT ở Việt Nam, Feb. 14, 2020
- ↑ Hội nghị triển khai các nội dung liên quan đến công tác hồi đất, bồi thường hỗ trợ, giải phóng mặt bằng và tái định cư thực hiện dự án xây dựng Nhà máy Nhiệt điện BOT Nam Định 1 tại xã Hải Ninh, Hai Hau Nam Định Government News, Oct. 8, 2020
- ↑ Draft National Power Development Plan VIII, MOIT, July 4, 2022
- ↑ Approving the national electricity development plan for the period of 2021-2030, with a vision to 2050, Prime Minister of Vietnam, May 16, 2023
- ↑ "Taekwang Power likely to reignite thermal power project in northern Vietnam," The Investor, May 25, 2023
- ↑ "Integrated Annual Report 2022," ACWA Power, May 2023
- ↑ Vietnam Business News June 3/2023, VietNamNet Global, June 3, 2023
- ↑ Gulf (Thailand) proposed to invest in the power – gas center and LNG terminal in Nam Dinh, Vietnam Energy Online, October 20, 2023
- ↑ Nhà máy nhiệt điện Nam Định 1 có nguy cơ bị đưa ra khỏi quy hoạch, Diễn đàn Doanh nghiệp, November 12, 2023
- ↑ Nam Định muốn chuyển dự án điện than hơn 2 tỷ USD thành điện khí LNG, Báo VietNamNet, November 16, 2023
- ↑ Thailand’s Gulf Energy eyes 6,000 MW LNG-fired power plant in northern Vietnam, Theinvestor.vn, March 4, 2024
- ↑ Sắp có Nhà máy điện khí LNG tại Nam Định?, PetroTimes, March 28, 2024
- ↑ V/v rà soát các dự án nhiệt điện than đã có trong Quy hoạch điện VIII và đang gặp khó khăn trong triển khai., Văn phòng Chính phủ, June 20, 2024
- ↑ Nam Dinh 1 (1200 MW), Market Forces, updated Feb 20, 2018
- ↑ Vietnam – Nam Dinh IPP loan to have guarantee, Project Finance International, August 16, 2018 (paywalled)
- ↑ Banks need to follow StanChart’s lead and end new coal finance, Asia Times, Sep. 28, 2018
- ↑ Nam Dinh 1 signs Sinosure-backed loan, Prosimo Infra, Jan. 8, 2020
- ↑ Details emerge on Nam Dinh 1 IPP financing in Vietnam, IJGlobal, accessed Sep. 2, 2020
- ↑ Trung Chanh, 18 dự án nhiệt điện than trong quy hoạch khó tiếp cận vốn, The Saigon Times, Oct. 3, 2021
- ↑ Vietnam: BOT Projects--The Path To Closure In Vietnam, Mondaq, Jun. 9, 2022
- ↑ Viewpoint: Cautious outlook for Vietnam’s coal imports, Argus Media, December 20, 2022
- ↑ 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
- ↑ Unpacked: Vietnam’s US$15.5 Billion JETP Agreement, Vietnam Briefing, December 19, 2022
- ↑ Nhiệt điện mọc lên, số phận sông Ninh Cơ và vùng biển liền kề có thoát ô nhiễm?, Tin Tuc Nam Dinh, 14 July 2016.
Additional data
To access additional data, including interactive maps of the power stations, downloadable datasets, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.
