Cogeneration potential in pulp and paper industry of Vietnam

This paper analyses the economics of cogeneration potential in the pulp and paper industry of Vietnam. The analysis focuses on six large existing paper mills, their planned capacity expansion and nine planned new mills up to 2010. The analysis considered five alternative fuels (coal, diesel, fuel oil, natural gas and rice husk), three different technologies (steam turbines, gas turbines and reciprocating engines) and two modes of operation (thermal match and power match) of cogeneration. It also considered the case of sale of excess power to the grid. The analysis indicates that cogeneration is a viable option in the paper and pulp industry in Vietnam and the potential is about 200 MW. IRR in most of the cases ranges between 15 and 30% and the general payback period is between 3 and 5 years. Cogeneration remains a viable option even without sale of power to the grid and under different unfavourable conditions of fuel price, investment and other factors. Copyright (C) 2005 John Wiley Sons, Ltd.