On the morning of June 18, 2024, a delegation consisting of representatives from the Ministry of Industry and Trade, the Embassy of Denmark, the Danish Energy Agency, and experts from VETS conducted a working session and visited the NatSteelVina steel plant in Thai Nguyen.
This activity is part of the Vietnam-Denmark Energy Partnership Program (DEPP3) for the 2020-2025 period. NatSteelVina is one of the pioneering companies participating in the Voluntary Agreement Program (VAS), a program that promotes energy saving and efficiency in the industrial sector. The VETS | Energy and Environment team has been providing consultation services to NatSteelVina since January 2024, helping to identify opportunities to implement energy efficiency solutions.
During the working session, the delegation listened to the company present the findings from the screening report and the detailed techno-economic report, conducted by Danish and Vietnamese consultants, to identify opportunities for implementing energy efficiency solutions.
Mr. Kristoffer Böttzauw, Director General of the Danish Energy Agency, expressed his satisfaction with the project’s results and progress. “I am very impressed by the experts’ findings. This demonstrates that energy savings are not only technically feasible but also economically viable. The collaborative efforts at NatSteelVina can serve as an inspiration for other enterprises in Vietnam to conduct more in-depth studies and move towards investments in energy efficiency, thereby promoting a green economy,” shared Mr. Kristoffer Böttzauw.
Mr. Hoang Van Tam, representative of the Department of Energy Efficiency and Sustainable Development – Ministry of Industry and Trade, stated that the support provided by the DEPP3 Program will enable businesses to make positive contributions toward the energy-saving targets set forth in Decision No. 280/QD-TTg, dated March 13, 2019, approved by the Prime Minister as part of the National Program on Energy Efficiency for the 2019-2030 period.
“The efforts to enhance energy efficiency within enterprises are crucial to ensuring national energy security while promoting green growth and reducing carbon emissions, in line with Vietnam’s commitments made at the COP26 Conference. Currently, the Ministry of Industry and Trade is implementing various programs to support businesses in improving their capacity to comply with regulations on energy efficiency and greenhouse gas emissions reduction,” Mr. Hoang Van Tam shared.
During the working session, Mr. Hoa Thai Thanh, Project Consultant and Expert at VETS | Energy and Environment, discussed energy-saving solutions appropriate for each stage and proposed a plan for the reasonable allocation of financial resources.
In the previous phase, the enterprise received technical assistance from the DEPP3 Program to evaluate the potential for energy savings in various production stages with opportunities to implement energy efficiency solutions. Improving the efficiency of the RHF furnace was highlighted as a solution with high feasibility in both economic and technical terms.
Based on the preliminary assessment, the consulting team of the Program proposed upgrading the control system of the RHF furnace to optimize the combustion process. This not only improves the furnace’s efficiency and reduces emissions but also brings additional benefits beyond the initial goal, such as reducing oxide scale formation on steel billets.
Preliminary calculations indicate that improving the furnace could help the enterprise save approximately VND 4 billion annually by reducing FO oil consumption and minimizing raw material wear. At the same time, the company would reduce around 440 tons of CO2 emissions per year. The project is expected to have a payback period of two years.
Given the positive results of the initial study, the company requested further support from the Program to conduct a detailed techno-economic study to assess the opportunities, challenges, and risks of the solution. This report is expected to be completed in August and will be submitted to the Board of Directors for investment consideration.
After the working session, the delegation visited the main production lines and discussed additional opportunities to enhance energy efficiency and reduce emissions at the plant.
Mr. Nguyen Van Tuan, General Director of NatSteelVina, affirmed the company’s commitment to becoming a pioneer in energy efficiency and emissions reduction in the steel industry. “For many years, NatSteelVina has continuously worked to improve its production lines and implement initiatives aimed at reducing energy consumption and production costs, striving towards green steel production and environmental protection, in line with the Government’s policies, while maintaining our position in both the domestic and international markets. The technical support from the DEPP3 Program has been timely and has provided many practical benefits,” Mr. Nguyen Van Tuan shared.
