eRex Co. is pushing deeper into Southeast Asia’s renewable energy market with plans to launch biofuel projects in Vietnam and Cambodia, as the region grapples with rising power demands and climate concerns.
The Tokyo-based power producer will test biofuel co-firing at six coal plants operated by Vietnam’s state-owned Vinamicon, targeting commercial operations by 2027. The project, supported by Japan’s NEDO, will initially blend 20% locally sourced biofuel with coal at two locations in early 2025.
In Cambodia, eRex plans to construct a hybrid solar-biomass facility with 90,000 kilowatts capacity, requiring investment between 10 billion yen to 20 billion yen ($65 million to $130 million). Construction is expected to start by spring 2025, with the company seeking external partners and project financing.
The expansion comes as Vietnam’s electricity demand has doubled over the past decade, according to IEA data. While the country heavily depends on coal for over 40% of its power needs, eRex is betting on biomass as a more reliable alternative to weather-dependent renewables, citing 85% utilization rates compared to 15% for solar farms.
The company aims to operate 19 biomass power plants in Vietnam by 2035, building on partnerships formed last May with JFE Engineering and Kyudenko.
