2024 marks a significant step forward in the journey towards sustainable production optimization for Vietnam’s leading industrial manufacturing group, Hoa Phat.
In the highly competitive steel industry, Hoa Phat has achieved something unexpected: a staggering saving of VND 5.4 trillion by utilizing residual heat from the production process.
This is not only an economic achievement but also a crucial milestone in their sustainable development journey, shaping the future of green energy in Vietnam. This aligns with the group’s philosophy: “For Hoa Phat, sustainability is of utmost importance.”
The Power of Residual Heat: Hoa Phat’s Story of Sustainable Energy
Specifically, the surplus heat power plants in the Hai Duong and Dung Quat Integrated Iron and Steel Complexes recorded an impressive electricity production of 3.18 billion kWh, a 29% increase compared to the same period. This has enabled Hoa Phat to be 90% self-sufficient in electricity for production, reducing reliance on the national power grid.
Illustration of a waste heat recovery system. Image: Sre-energy
Notably, on February 5, 2025, the Dung Quat Thermal Power Plant – a subsidiary of Hoa Phat Dung Quat Joint Stock Company (the largest member company of Hoa Phat Group) officially surpassed the milestone of 10 billion kWh of cumulative electricity production since its operation, affirming the success of their strategy to utilize residual heat and gas.
Hoa Phat has harnessed the residual heat and gas generated during production to generate electricity, resulting in cost savings and enhanced competitiveness in the market.
This not only reduces the burden on the national power grid but also contributes to setting new standards for energy efficiency in the steel industry.
More importantly, utilizing this “gold mine” of residual heat not only cuts production costs but also minimizes environmental impact – a challenging issue faced by many businesses. Instead of wasting the heat generated during steelmaking, the company has converted it into electrical energy.
Hoa Phat’s technology has transformed seemingly useless resources into practical values, contributing to environmental protection and setting a sustainable development model for other businesses to emulate.
G7-Standard Technology: Turning “Waste” into “Hot Gold”
According to the latest information from Hoa Phat Group, the company aims to achieve a revenue of VND 170,000 billion in 2025, an increase of approximately 21% compared to 2024. If accomplished, this will be the highest revenue in Hoa Phat’s history.
To enhance production efficiency and protect the environment, Hoa Phat continuously invests in modern technology from G7 countries (including Canada, France, Germany, Italy, Japan, the UK, and the USA). These technologies not only help reduce costs and optimize production, contributing to the VND 170,000 billion revenue target for 2025, but also lay a solid foundation for long-term sustainable development.
Currently, Hoa Phat implements five energy-saving solutions in steel production, in addition to the waste heat recovery technology, turning waste heat into “hot gold” – saving over VND 5,000 billion in 2024:
1. Recovery of residual heat and gas: Residual heat from coke production and gas from the iron and steelmaking stages are reused for power generation to support production.
2. Dry coke quenching technology: This technology is environmentally friendly and also serves the purpose of power generation.
3. Blast Furnace Top Gas Recovery Turbine (BPRT): The application of BPRT technology saves up to 50% of electricity compared to traditional methods.
4. Utilization of residual heat in ore sintering: This process utilizes residual heat to generate electricity.
5. Continuous Casting and Rolling Technology: This technology utilizes the heat from hot billets (750-900 degrees Celsius) by directly transferring them to the rolling mill, optimizing energy use, reducing production costs, and minimizing CO2 emissions.
Hoa Phat’s journey is not just about the figure of VND 5,400 billion; it’s also a story of creativity, innovation, and a strong commitment to sustainable development. This achievement opens up opportunities for the company to continue making a profound impact, not only in Vietnam but also on the international stage.
Chairman of Hoa Sen Group, Le Phuoc Vu: We Have Ample Funds; We Will Develop a 600-700 Ha Township, Nothing Smaller.
“Hoa Sen Group is armed with several trillion dong to repurchase shares and safeguard shareholder interests, according to Chairman of the Board, Le Phuoc Vu. This move aims to protect shareholders from potential further stock price declines.”
The Steel Industry’s Foundation for Projected Robust Growth in 2025
The steel industry is projected to be the top-performing sector in 2025, according to market analysts. With a boost from the recovering real estate market and increased public investment, steel is poised to experience significant growth.
Unlocking Quang Tri’s Potential: Focusing on Renewable Energy and Tourism
In the North Central and Central Coastal Region Master Plan until 2023, Quang Tri Province is prioritized for renewable energy and tourism development.
The Logistics Titan: Unveiling Investment Opportunities in Vietnam with a Focus on these Key Areas
“The CEO of the Maersk Group reminisced about the company’s first ship docking in Vietnam back in 1923. Fast forward a century, Maersk remains committed to its longstanding presence in the country, solidifying its investment in Vietnam’s maritime industry.”
A Revitalized Project Dung Quat 2: On Track for Success and Bolstering Hoa Phat’s Financial Fortunes
At the seminar, Hoa Phat’s CFO shared insights into the disbursement progress of the Dung Quat 2 project and the corporation’s long-term growth potential with the project’s commencement.
