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Economics of co-firing rice straw in coal power plants in Vietnam

Author

Listed:
  • an Ha Truong

    (USTH - Department of Advanced Materials Science and Nanotechnology [Hanoi] - USTH - University of Science and Technology of Hanoi, VIET - Vietnam Initiative for Energy Transition)

  • Minh Ha-Duong

    (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, VIET - Vietnam Initiative for Energy Transition)

  • Hoang Anh Tran

    (University of Science and Technology of Hanoi, Viet Nam, VIET - Vietnam Initiative for Energy Transition)

Abstract
As governments forced electricity producers to use more renewable energy sources, over a hundred thermal power plants in high-income countries turned to biomass as a partial or complete replacement for coal. Is the co-firing technology appropriate for Vietnam? To assess the technology we build an integrated model simulating the economics, environmental and social implications of blending 5% of rice straw in two existing coal power plants in Vietnam. The business value of co-firing is positive –straw is cheaper than coal– but not large enough to motivate the stakeholders. The external social benefit of co-firing –reduced air-borne pollution– are several times larger than the business value. Within that external benefit, the social value of avoided PM2.5 and NOx emissions dominates the social value of avoided CO2 emissions. The net job creation effect is positive: collecting straw creates more employment than using less coal destroys. This is the first technology assessment of co-firing biomass in coal power plants in Vietnam and one of the first for a subtropical middle-income country. The study only considers rice straw, and it does not address the role of government nor the biomass market functioning. The price of coal is the primary determinant of co-firing business value. There is an empirical economic justification for a public intervention to promote co-firing biomass in Vietnam, mainly as a way to reduce open-field straw burning. Local air quality goals, rather than greenhouse gas reduction policy, can justify such regulations.

Suggested Citation

  • an Ha Truong & Minh Ha-Duong & Hoang Anh Tran, 2022. "Economics of co-firing rice straw in coal power plants in Vietnam," Post-Print hal-03277278, HAL.
  • Handle: RePEc:hal:journl:hal-03277278
    DOI: 10.1016/j.rser.2021.111742
    Note: View the original document on HAL open archive server: https://enpc.hal.science/hal-03277278v2
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    1. Nguyen Van Song & Thai Van Ha & Tran Duc Thuan & Nguyen Van Hanh & Dinh Van Tien & Nguyen Cong Tiep & Nguyen Thi Minh Phuong & Phan Anh Tu & Tran Ba Uan, 2021. "Development of Rice Husk Power Plants Based on Clean Development Mechanism: A Case Study in Mekong River Delta, Vietnam," Sustainability, MDPI, vol. 13(12), pages 1-10, June.
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    4. Dzikuć, Maciej & Piwowar, Arkadiusz, 2016. "Ecological and economic aspects of electric energy production using the biomass co-firing method: The case of Poland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 856-862.
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    7. Johnston, Craig M.T. & van Kooten, G. Cornelis, 2015. "Economics of co-firing coal and biomass: An application to Western Canada," Energy Economics, Elsevier, vol. 48(C), pages 7-17.
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    10. An Ha Truong & Piera Patrizio & Sylvain Leduc & Florian Kraxner & Minh Ha-Duong, 2019. "Reducing emissions of the fast growing Vietnamese coal sector: the chances offered by biomass co-firing," Post-Print hal-01974493, HAL.
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    Cited by:

    1. Zhang, Yun-Long & Liu, Lan-Cui & Kang, Jia-Ning & Peng, Song & Mi, Zhifu & Liao, Hua & Wei, Yi-Ming, 2024. "Economic feasibility assessment of coal-biomass co-firing power generation technology," Energy, Elsevier, vol. 296(C).
    2. Do, Thang Nam & Burke, Paul J., 2023. "Phasing out coal power in a developing country context: Insights from Vietnam," Energy Policy, Elsevier, vol. 176(C).
    3. Huang, Qian & Xu, Jiuping, 2023. "Carbon tax revenue recycling for biomass/coal co-firing using Stackelberg game: A case study of Jiangsu province, China," Energy, Elsevier, vol. 272(C).

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    Keywords

    Biomass cofiring; Emission control; Coal power; Lifecycle Assessment LCA; Technology assessment;
    All these keywords.

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