Vietnamese Quang Ngai geothermal project to commence by the end of 2012
Rice fields in Quang Ngai province, Vietnam (source: flickr/ Marika, creative commons)
Alexander Richter
28 Aug 2012
Vietnam is expected to see the start of development of its first geothermal power plant project in Quang Ngai province later this year. The project owner is PetroVietnam, with Ormat Technologies chosen as supplier of the power plant technologies.
A recent regional update by consultancy Baker & McKenzie, provided some details on geothermal development in Vietnam. With initial studies in 2004, 2006 and 2010, it seems like Vietnam is now pushing forward on its first geothermal power plant project, located in Quang Ngai province.
Vietnam has so far not been on the map for geothermal development, but it is estimated to have a geothermal power generation potential of up to 400 MW. Development cost is believed to be around $1.5 million per MW installed capacity.
The regions with potential in Vietnam are the North West, North East, the North and South central Vietnam.
In the 1990s, Ormat Technologies spent large efforts in research and planning for a geothermal power plant project of up to 20 MW in the country, but as there was no policy in place to support development or buying of power the project didn´t evolve.
In 2008, Ormat applied for a license to build five geothermal power plants in Le Thuy (Quang Binh), Mo Duc, Nghia Thang (Quang Ngai), Hoi Van (Binh Dinh), and Tu Bong (Khanh Hoa). The capacity of these plants is proposed to total 150-200MW.
In April 2012, regional news reported that Vietnam Geothermal Power Corp. has chosen Ormat as the main technical partner for the development of two projects in Mo Duck and Tu Nghia district, Quang Ngai province, Vietnam, with a designed capacity of each 18.7 MW.
The Quang Ngai Geothermal Power Project, found in Quang Ngai province (Thanh Tru village, Duc Lan ward, Mo Duc district), is now the pilot project for the country. The project owner is PetroVietnam. It is not clear though if “Vietnam Geothermal Power” is a vehicle of PetroVietnam for the development for this project. The project has seen several studies and work since 2007. Reservoir temperature is estimated at 160 degrees Celsius.
PetroVietnam has been looking for co-investment into the projects to cover expected development cost for the Quang Ngai project of up to $40 million. Ormat seems to have been selected to provide the technical components of the plant.
Pre feasibility preparations have been finalized until October 2011 and May 2012. Contractors for the project will be selected in October 2012 and project commencement of December 2012.
The plant is expected to start generating power by December 2014.
The project will be a stepping stone for future geothermal power project development in Vietnam. But so far “PetroVietnam Power Corporation has not announced the investment capital of the first project, but has disclosed that it is presently processing surveys and exploration on the flow of a hot water stream in Nghia Thang ward, Tu Nghia district (Quang Ngai province) to accelerate the investment procedures for its next geothermal power project.”, so a recent report by Baker & McKenzie.
Source: Quang Ngai Province, Quang Ngai Proejt Overview of PetroVietnam, Baker & McKenzie
