Press release
TBM Signs MOU with VAPCO, a coal-fired power plant operator, and Viet Hai, a major Vietnamese construction company, to Build CCU Plant and manufacturer CCU Materials
Working to expand high value added applications for CCU materials
"CCU Calcium Carbonate" and "CR LIMEX"
TBM is pleased to announce that it has signed a Memorandum of Understanding with Vung Ang II Thermal Power LLC (hereinafter VAPCO), which operates a coal fired power plant in Ha Tinh Province, Vietnam, and Viet Hai Trading and Transportation Co., Ltd.(hereinafter Viet Hai), a leading construction company in the same province. Under the agreement, the three parties will work together to build a plant that produces CCU material "CCU Calcium Carbonate" by chemically combining CO2 from Vung Ang II with steel slag supplied by Viet Hai. They will also manufacture "CR LIMEX" by compounding CCU Calcium Carbonate with resin and develop high value added applications for these materials.
■ Background
Vietnam has achieved solid economic development, recording a GDP growth rate of 7.09% in 2024*1, but the resulting greenhouse gas emissions have become a social issue*2. At COP26, the government declared its intention to achieve net-zero emissions by 2050*3. However, the share of coal-fired power generation in the country's electricity mix remains high at approximately 55% (as of January 2024)*4. Under these circumstances, in order to advance decarbonization without compromising the stable supply of electricity essential for economic growth, there is a need for solutions that reduce CO₂ emissions through technological innovation while continuing to use existing power plants as important social infrastructure. Against this backdrop, VAPCO, which operates a coal-fired power plant in the Vung Ang Economic Zone in Ha Tinh Province, Viet Hai, which operates a diversified construction business in the same region, and TBM, a carbon solutions company with a track record of developing materials using CCU technology, have concluded a memorandum of understanding (MOU) to integrate their respective management resources and work toward a green transition through a carbon capture and utilization project.
■ Cooperation details
Under TBM's CCU technology, which was introduced at the World Economic Forum Annual Meeting 2024 in Davos through the announcement of the CCU material CR LIMEX, TBM has developed a process to produce CCU Calcium Carbonate by chemically synthesizing CO2 with steel slag. CCU, which captures and reuses CO2, is positioned as one of the investment areas under the GX strategy promoted by the Japanese government. TBM accelerated the governments roadmap by around 15 years and launched CR LIMEX as an alternative to petroleum based plastics in late 2024. In this project, the partners aim to build a CCU plant that produces CCU Calcium Carbonate using CO2 emitted from VAPCO's power plant and steel slag supplied by Viet Hai. The CCU Calcium Carbonate produced at the plant is planned to be used as construction materials in Vietnam and overseas through Viet Hai's network. In addition, the partners plan to manufacture CR LIMEX by compounding CCU Calcium Carbonate with resin. By doing so, they aim to expand adoption in high value added applications beyond conventional calcium carbonate uses, including plastic replacement applications, interior building materials, and civil engineering materials.
The project aims to generate carbon credits by reducing CO2 emissions and by permanently storing CO2 that would otherwise be released into the atmosphere within products over the long term. In addition, the project will advance both resource circulation and carbon circulation by utilizing steel slag, an industrial byproduct generated during iron ore melting and scrap refining. Through these efforts, the partners will help accelerate the circular economy and carbon neutrality within the region.
・Construction of a CCU plant and production of "CCU calcium carbonate"
This project will consider the construction of a CCU plant that captures and reuses approximately 160,000 tons of CO₂ emitted annually from VAPCO's thermal power plants. The plant will utilize TBM's CCU technology to chemically synthesize approximately 400,000 tons of steel slag emitted annually from Viet Hai's steelworks with CO₂, with the goal of producing approximately 210,000 tons of CCU calcium carbonate per year. TBM will also consider the optimal method and infrastructure construction for producing CCU calcium carbonate using VAPCO's CO₂ and Viet Hai's steel slag in Vietnam.
・Development of high-value-added applications for "CCU calcium carbonate"
Viet Hai will develop high-value-added applications for CCU calcium carbonate based on the technical and commercial information on CCU calcium carbonate provided by TBM and with TBM's support in application development.
About Vung Ang II Thermal Power LLC
Vung Ang II Thermal Power LLC (VAPCO) is a power generation company that constructs and operates the Vung Ang II coal-fired power plant in the Vung Ang Economic Zone in Ha Tinh Province, central Vietnam. The project is being carried out under a build-operate-transfer (BOT) agreement with the Vietnamese government. The power generation facilities, with a total output of 1,330 MW (665 MW x 2 units), use ultra-supercritical (USC) technology and are expected to operate as a core power source to support the country's electricity supply and demand once construction is complete.
■ Viet Hai Trading and Transportation Co., Ltd.
Viet Hai Trading and Transportation Co., Ltd., headquartered in Ha Tinh Province in central Vietnam, is one of the largest private construction and building materials manufacturing companies in the region. Over the more than 30 years since its founding, the company has built a diversified business portfolio encompassing infrastructure construction, transportation and logistics services, and construction materials manufacturing. In particular, in the building materials field, the company possesses advanced technology and production capabilities in the manufacture of commercial concrete, precast concrete components, unfired bricks, tiles, and other products, and is involved in numerous major infrastructure projects in central Vietnam. Leveraging its strong network with local industries, the company is a core company in the supply chain, handling everything from the procurement of unused resources to the manufacturing and supply of high-value-added products.
■ What is TBM's CCU business?
We aim to address global environmental and social issues by converting the massive amounts of CO₂ emitted around the world into valuable resources and supplying them as environmentally conscious raw materials and materials. We also develop Carbon Capture and Utilization (CCU) plants adjacent to CO₂ emission sources, establishing a "local production, local production" model for CO₂ resource utilization. Specifically, we partner with businesses with large CO₂ emissions (thermal power plants, steel mills, etc.) to capture CO₂ from these sources using CCU technology and chemically react it with waste-derived calcium to produce "CCU calcium carbonate." This recycled CO₂ calcium carbonate can be used as a raw material for building materials such as interior and exterior finishes. Furthermore, when blended with recycled plastics, it becomes "CR LIMEX," an alternative to petroleum petroleum-based plastics, which can be supplied for a variety of uses. Furthermore, we create "environmental value" through the reduction and fixation of CO₂ generated during our business cycle in the form of carbon credits. This will enable businesses with high emissions to reduce their CO₂ emissions, and companies that use materials will be able to reduce the environmental impact of their supply chains and procure low-carbon material in a stable manner. Through this scheme, we will contribute to achieving carbon neutrality for society as a whole.
* 1 JETRO:GDP growth rate in 2024 is expected to be 7.09%, accelerating to 7.55% in the fourth quarter
* 2 Reuters:Vietnam coal-fired power emissions hit new highs in early 2024
* 3 MINISTRY OF AGRICULTURE AND ENVIRONMENT of Vietnam :Fulfilling climate commitments at COP26
* 4 Reuters:Vietnam coal-fired power emissions hit new highs in early 2024