The activity is part of the Energy Partnership Program between Vietnam – Denmark period 2020-2025 (DEPP3).

According to the design of Component 3 of the DEPP3 program, a number of enterprises will have the opportunity to participate in the Voluntary Agreement Scheme to promote energy efficiency in the industrial sector (VAS). Accordingly, enterprises will receive technical support to conduct energy audits, pre-feasibility studies, and feasibility studies to assess opportunities, challenges, and solutions to improve energy efficiency. NatSteelVina is one of the pioneering enterprises participating in this scheme. The work and visit aimed to understand the progress of the project and the results of cooperation between two sides.

At the meeting, the delegation heard the enterprise present the findings from the screening report and pre-feasibility study conducted by Danish and Vietnamese consultants to identify opportunities to implement energy efficiency solutions. The next phase of the project - the feasibility study, will focus on exploring solutions to improve the RHF furnace.

After the meeting, the delegation visited the main processes and discussed further opportunities to improve energy efficiency and reduce emissions from the plant.

Mr. Kristoffer Böttzauw, Director General of the Danish Energy Agency, expressed satisfaction with the results and progress of the project. "I am very impressed with the experts’ findings. This demonstrates that energy efficiency is not only technically feasible but also economically viable. The collaborative efforts underway at NatSteelVina could serve as inspiration for other businesses in Vietnam to conduct more in-depth research and invest in energy efficiency, thereby promoting a green economy," shared Mr. Kristoffer Böttzauw.

Mr. Hoang Van Tam, Energy Efficiency and Sustainable Development under the Ministry of Industry and Trade, stated that the support from the DEPP3 Program would help enterprises make positive contributions to achieving the energy efficiency targets set out in Decision No. 280/QD-TTg.

“The enterprises’ efforts in energy efficiency enhancement are crucial to ensure the national energy security, promote green growth path, reduce carbon emissions to fulfill Vietnam's commitments at COP26. Currently, the Ministry of Industry and Trade is implementing a number of programs to support the enterprises in enhancing their capacity to comply with regulations on energy efficiency and greenhouse gas emissions reduction”, said Mr. Tam.

In the previous phase, NatSteelVina was technically supported by the DEPP3 Program to assess energy efficiency potentials in production stages where opportunities for implementing efficiency-enhancing solutions exist. Improving the performance of RHF furnaces was particularly highlighted as a solution with high feasibility both economically and technically.

It is known that the RHF furnace uses an outdated control system, which has not been optimized, causing a lot of energy waste. Through preliminary evaluation, the consulting firm has proposed a solution to upgrade the RHF furnace control system to optimize the combustion process. This not only improves the efficiency of the furnace, reduces emissions but also brings benefits beyond the original goal of reducing the formation of oxide scales on billets.

Preliminary study show that improving the furnace will help the enterprise reduce production costs by about 4 billion VND each year, through reducing FO oil consumption by 3% and reducing steel losses by 0.1%. At the same time, the enterprise will also reduce about 440 tons of CO₂ emissions per year. The payback period of the project is expected to be 2 years.

From the optimistic results of the pre-feasibility study, the enterprise requested the Program to continue supporting the implementation of the feasibility study for a comprehensive assessment of opportunities, challenges, risks, etc. The report is expected to be completed in August and submitted to the Board of Directors for investment consideration.

Nguyen Van Tuan, General Director of NatSteelVina, affirmed his determination to become a pioneering steel enterprise in energy efficiency, emissions reduction. "For many years, NatSteelVina has continuously strived to improve its technological processes and implement initiatives to reduce energy consumption and production costs, aiming towards green steel production and environmental protection, in line with the Government's policies, while maintaining a strong market position domestically and internationally. The timely technical support from the DEPP3 Program has brought to us many practical benefits," said Mr. Nguyen Van Tuan stated.

Some pictures at the meeting:

For photos from the site visit, please visit: https://depp3.vn/thu-vien-anh/p55/working-session-between-the-ministry-of-industry-and-trade-the-danish-energy-agency-and-natstellvina-company-limited-on-the-depp3-project-effective-energy-saving.html 

For further information of DEPP3 Program, please visit: depp3.vn