CENTER OF EXCELLENCE FOR ENERGY EFFICIENCY

On the morning of April 2, 2025, a meeting was held in Hai Duong to review the results of energy efficiency projects at Song Da Cao Cuong Joint Stock Company (SCL). The meeting aimed to clarify the findings of the feasibility study and discuss support activities to assist the enterprise in implementing the proposed solutions in the near future.

The meeting was attended by representatives from the Agency for Innovation, Green Transition and Industry Promotion (Ministry of Industry and Trade); the DEPP3 Program project team; the leadership and technical staff of Song Da Cao Cuong JSC; and the local consulting firm, Enervi.

Speaking at the meeting, Mr. Hoang Van Tam, Head of the Climate Change and Green Growth Division, Agency for Innovation, Green Transition and Industry Promotion (Ministry of Industry and Trade), emphasized: "Energy efficiency projects not only play a vital role in the sustainable development strategy of the industrial sector but also drive the green transition and enhance business competitiveness. We highly appreciate Song Da Cao Cuong's proactive approach in adopting and implementing advanced solutions to optimize energy efficiency."

As one of the first four enterprises selected for piloting the Voluntary Agreement Scheme (VAS Program) since 2023, SCL has been supported by DEPP3 experts in assessing and identifying the most promising energy efficiency solutions.

Mr. Hoang Van Tam, Head of the Climate Change and Green Growth Division, Agency for Innovation, Green Transition and Industry Promotion (Ministry of Industry and Trade), emphasized the critical role of enterprises in proactively implementing energy efficiency measures.

Three Key Solutions for Energy Efficiency and Emissions Reduction

Following in-depth research, three key solutions were proposed, aiming to help the enterprise reduce energy consumption by 6% and greenhouse gas emissions by 3% by 2025.

The first solution involves recovering heat to improve the steam system. On-site surveys revealed that the current steam system operates inefficiently: condensate water is contaminated due to direct contact with products, and high-temperature steam (180–190°C) is vented directly into the environment. To address these issues, the experts proposed installing a flash tank and a deaerator to recover and purify waste heat for reuse in the boiler.
This solution is expected to save 465 tons of fuel per year, with an investment cost of about VND 1.2 billion and a payback period of 1.7 years. Notably, the solution incurs no additional operating or maintenance costs.

The second solution focuses on enhancing boiler combustion efficiency by improving the grate firing system. Currently, the enterprise uses fans to distribute fuel (wood chips) into the boiler, resulting in high residual carbon in the ash and elevated CO levels in flue gas. The DEPP3 experts proposed modifying the fuel distribution structure to improve combustion efficiency. With a modest investment of just VND 100 million, the company could save 58 tons of fuel annually and achieve a payback period of 1.2 years.

The third solution proposes recovering waste heat from the drying system, where exhaust temperatures range between 120–130°C. Such high temperatures not only damage the bag filters but also result in significant heat loss. Therefore, the experts suggested installing a water preheater to capture and reuse this waste heat to fuel the boiler. The solution requires an investment of about VND 1.58 billion, saves nearly 700 tons of biomass annually, and offers a payback period of 1.5 years. Similarly, this solution entails no additional operating or maintenance costs.

According to DEPP3 experts, with a total investment of less than VND 3 billion, these three solutions would not only bring considerable energy efficiency but also help the enterprise reduce around 2.1 tons of CO₂ emissions per year, contributing to its green production goals.

Additionally, the solutions would deliver several non-energy benefits (NEBs), such as reducing production costs, extending equipment lifespan, minimizing thermal pollution in the workplace, and improving working conditions.

Unlocking Opportunities from Carbon Credits

Mr. Vu Van Chien, General Director of SCL, affirmed the enterprise’s commitment to implementing energy efficiency and emissions reduction solutions soon.

Mr. Vu Van Chien, General Director of SCL, stated: "SCL greatly values the support provided by the Program’s experts. In the next phase, SCL will proceed with investments and explore further opportunities to optimize the energy efficiency of our production systems."

SCL representatives also expressed their hope that the Ministry of Industry and Trade and the DEPP3 Program would continue to provide support and consultancy to facilitate carbon credit generation, access global carbon trading markets, and affirm SCL’s position as a reputable green building materials manufacturer in Vietnam.

Working session between the Ministry of Industry and Trade, the DEPP3 Program, and SCL Company.

Mr. Jorgen Hvid, Long-term Advisor of the DEPP3 Program, shared that working with SCL has provided valuable practical experiences that will help the Program refine its guidelines for energy efficiency project development and share them with stakeholders. "Following the feasibility study, the DEPP3 Program stands ready to continue accompanying and supporting SCL in accessing preferential financing sources for energy efficiency initiatives and preparing loan applications should the company require," Mr. Jorgen emphasized.

The working session concluded with a strong commitment from all parties to closely collaborate in promoting the implementation of energy efficiency solutions and emission reductions in the near future, supporting the enterprise’s ambition to become a pioneering model in environmentally friendly building materials production.

DEPP3 Program