Thang Nam Forestry Cuts Electricity Use by 17% with Innovative Energy Solutions

Thang Nam Forestry specializes in the production of MDF fiberboard and laminated wood panels. Equipped with advanced technology, state-of-the-art machinery, and modern management processes, the company meets stringent industry standards and customer requirements.

High Energy Demand in Wood Processing

Wood processing is inherently energy-intensive. According to General Director Nguyen The Mai, the company consumes approximately 35 million kWh of electricity annually to power machinery and 20,000 tons of fuel for its thermal boilers. These boilers supply heat and steam for production activities, making energy a significant contributor to production costs.

Recognizing this challenge, energy efficiency has been a top priority. “Previously, the electricity consumption per unit was 300 kWh, which incurred high costs,” Mr. Mai shared.

Key Energy-Saving Measures

To address these costs, the company has implemented several innovative measures:

• Increased production line capacity to 120–130%.
• Reduction in defective products from 3% to just 0.3%.
• Replacement of old motors with inverter-equipped models, cutting electricity costs by 15–20%.

These initiatives have collectively reduced energy consumption to approximately 250 kWh per unit.

Transition to Sustainable Fuels

The company has also shifted its boiler system from coal and wood chips to forest by-products, such as bark, and by-products from wood processing plants. This transition has eliminated fossil fuel usage and reduced energy costs by 50%.

Robust Energy Management

To ensure compliance with Vietnam’s Law on Economical and Efficient Use of Energy, the company has established an Energy Management Board. This board oversees energy policies, proposes savings initiatives, and meets weekly to evaluate progress. Employees and board members receive priority training in energy-efficient practices, which are then disseminated company-wide.

Future Plans under VAS Program

Thang Nam Forestry is participating in the Voluntary Agreement Program (VAS) under the Vietnam-Denmark Energy Partnership Program (2020–2025) to further enhance its energy efficiency. Through this program, experts have identified four potential solutions, including recovering excess heat for reuse in production processes.

“If successfully implemented, this solution could save the company 4–5 billion VND annually in energy costs,” Mr. Mai revealed.

Industry-Wide Impact

Research by the Vietnam Chamber of Commerce and Industry (VCCI) and the World Wildlife Fund (WWF) indicates that the wood processing industry could cut energy demand by 10.4% compared to conventional practices if efficient measures like those employed by Thang Nam Forestry are adopted widely.

Thang Nam Forestry’s initiatives demonstrate the potential for energy savings and cost reduction, setting a benchmark for sustainability in Vietnam’s wood processing sector