ANNUAL REPORT 2024

ENVIRONMENTAL RESPONSIBILITY

The Company always strictly complies with current legal regulations of the law and manages according to ISO 14001:2015 standards (presented in PVCFC Company’s quality, safety, environmental, inspection and testing policies) to conduct environmental control at work. All waste sources of the Plant are strictly controlled and minimized in quantity, quality control always meets allowed regulations before being discharged into the environment. In 2024, the Company recorded no case of environmental violation.

  • Number of violations: 0
  • Total amount of fines: 0

Since its establishment, PVCFC has always focused on building an environmental management and control system. The Company strictly complies with regulations on safety, firefighting and prevention and environment such as: building an online monitoring system to continuously monitor and track the plant’s emission activities and transmit data to the Department of Natural Resources and Environment for management and supervision; quarterly environmental monitoring results are publicly posted on the Company’s website in the QHSE section. Management methods and environmental performance index for each specific content are described as below.

INPUT MATERIALS

  • Fertilizer manufacturing technology at Ca Mau Fertilizer Plant have the characteristics of using natural gas (fossil energy). Therefore, PVCFC always pays special attention to greenhouse gas emissions and global heating. Given that awareness, since the project commencement, the Company has invested in production lines with advanced technologies, for example, Ammonia production technology of Haldor Topsoe (Denmark) and Basf (Germany), Urea production technology of Saipem (Italy), Granulation technology of Toyo (Japan) and NPK production technology of Espindesa (Spain). Besides the current technologies and facilities, the Company constantly improves technical requirements, optimizing fuel sources, seeking new breakthrough solutions to save energy and improve production capacity, reducing greenhouse gas emissions of Ca Mau Fertilizer Plant.
  • At Ca Mau Fertilizer Plant, natural gas is used for two purposes: (1) raw material to produce semi-finished NH3and CO2 after production at Ammonia workshop; (2) fuel for primary Reformer or generating steam at auxiliary boiler. With the technology characteristics, natural gas used as fuel is the main gas consumed at Ca Mau Fertilizer Plant. In addition to natural gas, permeate gas (a by-product of Ca Mau Gas Processing Plant – GPP), of which 36% is used for burning at heaters and the rest is burned at GPP), is covered and reused, avoiding emissions into the environment. Since being put into use in February 2019, permeate gas has been mainly used as fuel to partially replace natural gas. The permeate gas/ natural gas ratio remains at around 2.7%. In 2024, the Plant recovered permeate gas with a total stream of 12.93 million Sm3/year.

Below is the raw material consumption for the production of Urea and NPK fertilizers at Ca Mau Fertilizer Plant over the years:

INFORMATION UNIT 2022 2023 2024
Non-renewable raw materials used to produce Urea
Urea production output thousand tons 917.81 950.39 953.8
Natural gas million m³ 346.22 350.26 355.59
Permeate gas million m³ 6.53 13.37 -
Non-renewable raw materials used to produce NPK
NPK production output thousand tons 114.33 143.20 205.74
Urea tons 20,870.83 22,825.81 29,605.60
SA tons 30,519.77 40,294.33 59,887.34
DAP tons 27,806.57 33,002.04 49,359.04
MAP tons 0.28 - 522.40
MOP tons 22,834.41 26,546.83 35.841.28
Fillers (Kaolin. Dolomite) tons 13,665.11 19,778.07 23,152.91
Raw materials containing Zn tons 113.03 249.37 508.87
Raw materials containing Bo tons 109.1 326.80 472.92
Liquid anti-caking agent CA30 tons 351.67 415.33 673.44
Talcum powder tons 707.45 900.60 1,341.45

Renewable materials account for an inconsiderable proportion of total materials; therefore, they are not included in this table.

Raw materials for NPK production technology include liquid materials (such as Urea, NH3, H2SO4…) and solid materials (such as Urea granules, MAP, DAP, SA, MOP, SOP, etc). In which, steam makes an important role to enable the process of forming products in granulators more easily and provide energy for granulation process. Natural gas along with air is used as fuel for combustion chamber and hot air generated from fuel combustion is used for cooling and drying products. Increasing production capacity leads to the increase in annual raw material usage.

WATER AND WASTEWATER

Water is an essential element in daily production and operation. However, this important resource is facing the risk of depletion and pollution due to unsustainable exploitation and climate change.

Total water consumption at PVCFC in 2024 was 1,269,647 m3, an increase of 4.05% compared to 2023 (1,220,266 3). In which:

Total amount of river water exploited in 2023 was 16.45 million m3 and in 2024 was 14.99 million m3;

Total amount of wastewater in 2023 was 72,747 m3 and in 2024 was 57,164 million m3;

Water consumption is reduced thanks to water saving measures, awareness of each employee in water use and operating the Plant at a higher capacity. The amount of water consumed per ton of product in 2024 decreased by 1.98% compared to 2023. In the end of 2024, Ca Mau Fertilizer Plant put into operation the system of recovering wastewater from RO filters, saving 17 m3/h from discharged concentrate, saving more than 145 thousand m3 of water per year, and at the same time, helping reduce the load of old RO system and reduce the amount of chemicals used in water treatment system.

WASTE

Waste control is an important goal of PVCFC, which is not only a legal responsibility but also a commitment to environmental protection. PVCFC applies advanced technology to minimize environmental impact and improve production efficiency. The Company always complies with legal regulations towards building an enterprise of environmental protection. In 2024, there were no violations or incidents related to waste pollution at PVCFC. The Company complies with regulations on waste collection, classification, and treatment, ensuring that waste storage system meets legal requirements, fully implementing waste management procedure to avoid errors that affect the environment

WASTE MANAGEMENT IN 2024
  • Domestic waste: is generated from offices, canteens, toilets, etc. with the quantity of 112,760 kg in 2023 and 138,134 kg in 2024. Domestic waste is collected and transferred to Ca Mau Urban Environment Joint Stock Company for treatment according to regulations.
  • Common industrial solid waste: includes wood scraps, broken pallets, plastic, scraps, etc. with the quantity of 63,288 kg in 2023 and 16,130 kg in 2024. They are collected and transferred to a qualified unit for treatment according to regulations..
  • Hazardous waste: with the quantity of 155,714 kg in 2023 and 330,242 kg in 2024, is classified, collected at source, temporarily stored at the Plant’s hazardous waste area, and then transferred to a qualified unit for treatment according to regulations.

ENERGY

ENERGY CONSUMPTION RESULTS IN 2024

Total energy consumption in 2024 at PVCFC increased by 0.34% compared to 2023. However, energy use intensity decreased by 5,48% compared to 2023. The results of energy use in 2024 at PVCFC are as follows:

Energy Type Unit 2023 2024 Ratio
Total Renewable Energy Consumption (1) NA NA NA NA
Total Non-Renewable Energy Consumption (2) GJ 20,831,892.79 20,902,086.34 Increase 0,34%
Total Energy Consumption (3) = (1) + (2) GJ 20,831,892.79 20,902,086.34 Increase 0,34%
Energy usage intensity GJ/million tons of products 19.07 18.03 Decrease 5.48%

According to the business plan until 2025 as approved in Resolution No. 6395/NQ-DKVN of Vietnam Oil and Gas Group, the goal set for Ca Mau Fertilizer Plant is to save energy, in which the energy consumption rate by 2025 will decrease by 5% compared to 2022. By the end of 2024, Ca Mau Fertilizer Plant has reduced the energy consumption by 4.38%/5% thanks to applying many improvements to increase output and decrease energy compared to 2022.

Solutions Time of putting into operation Technical efficiency
Replacing distribution systems of Towers S04301, S04302, C04301 September 2022 Expanding the overall capacity of CO₂ separation cluster, reducing the amount of output CO₂ slip at absorber towers, increasing capacity of NH₃ to 5.4 tons/day.
Separating flash gas & using output washed gas C0403 as production material November 2022 Increasing capacity of NH₃ to 7.1 tons/day.
Recovering hydrogen Offgas stream Phase 1: December 2021
Phase 2: November 2022
Increasing capacity of NH₃ to 18 tons/day.
Installing E04212C to optimize the Low temperature CO converter R04205 November 2022 Increasing capacity of NH₃ to 4.4 tons/day.
Recovering MP vent gas of Urea workshop Year 2022 Energy savings: 4.81 GJ/hr
Replacing SuperCups Trays R06101 Year 2022 Energy savings: 46,401.9 GJ/Year.
Installing additional Hydro filter column for HRU at Amo workshop Year 2022 Increasing NH₃ output by 9.05 tons/day
Installing ORC package 01 From 2023 to now The system produced 425,280 kWh (in 2023) and 804,274 kWh (in 2024)

Statistics of actual energy consumption of 1 ton of Urea bag compared to the targets from 2022 to present are as follows:

Year Unit Norm Actual Difference compared to the norm 2022
2022 GJ/Ton Urea bag 22.778 21.827 -4.17%
2023 GJ/Ton Urea bag 22.774 21.710 -4.69%
2024 GJ/Ton Urea bag 22.763 21.780 -4.38%

CLIMATE CHANGE

Climate change is increasingly posing significant challenges for enterprises, primarily through two major risks i.e. physical risks (extreme weather events such as storms, floods and droughts causing damage to infrastructure and disrupting production) and transitional risks (related to the transition to low-carbon economy driven by changes in government policies, technologies and consumer preferences). In response to climate change, PVCFC proactively assesses risks, develops sustainable development strategies, and invests in sustainable solutions. The company has implemented policies and procedures to minimize the impact of production and business on climate change. The Company also focuses on assessing the environmental impact from the early stages at Ca Mau Fertilizer Plant and researches to reduce emissions and use fertilizers effectively.

GREENHOUSE GAS REPORT

In 2024, preliminary calculation based on main emission sources at PVCFC showed that total emissions increased by 1.43% but emission intensity/ton of manufactured products decreased by 4.45%, demonstrating the effectiveness of improvements and emission reduction solutions at Ca Mau Fertilizer Plant.

Emission activities Unit 2023 2024 Change from 2023
A. Direct emissions (1+2) Ton CO₂/year 395,387.80 397,890.54 Increase 0.63%
B. Indirect emissions Ton CO₂/year 124,694.46 129,614.89 Increase 3.95%
Total of emissions (A+B) Ton CO₂/year 520,082.25 527,505.43 Increase 1.43%
Emission intensity Ton CO₂/ ton of products 0.476 0.455 Decrease 4.45%

We have some adjustments in calculating GHG emissions in 2024 compared to 2023 as follows:

  1. Changing allocation of natural gas as raw material - fuel from 70:30 allocation ratio into taking actual data of natural gas as fuel from meters at the Plant.
  2. Changing the conversion method of gas fuel consumption by specified coefficient into actual value at the Plant.
  3. Changing the conversion method of gas fuel consumption by specified coefficient into actual value at the Plant. This has led to a decrease of 1.8% in total emissions in 2023 in this AR compared to it in 2023 SR.
  4. This has led to a decrease of 1.8% in total emissions in 2023 in this AR compared to it in 2023 SR.
SOLUTIONS TO CLIMATE CHANGE
  • Along with technical improvements to increase production efficiency by reducing consumption of main production materials such as gas, power, water, and chemicals.
  • In 2024, PVCFC continued to implement the project of planting 300,000 trees in the period of 2022 - 2025 to contribute to the campaign of one million trees launched by the Government, towards Net Zero by 2050.
  • Effectively implementing energy transition and greenhouse gas emission reduction through projects: Integrated food CO₂ production system; recovering CO₂ from the sources such as separating CO₂ in fuel gas stream (containing 8% CO₂), recovering CO₂ from Reforming stream; rooftop solar energy of about 5 MWh at Ca Mau Fertilizer Plant; increasing the Plant’s capacity by 5% using green Hydrogen from electrolysis technology, and so on.
PROGRAM:

GIVING OLD BATTERIES - GETTING NEW PRESENTS

Given awareness of the harmful effects of discarded batteries, as a single discarded battery can pollute 500 liters of clean water and one cubic meter of soil for 50 years, PVCFC has pioneered the program “Giving old batteries – Getting new presents” in 2024. The program not only encourages employees in the Company to collect discarded batteries but also spreads a strong message about environmental protection

After a period of implementation, the program has helped collect 224 kg of old batteries - an impressive number that reflects PVCFC’s sense of responsibility and commitment on the journey of joining hands for a greener and cleaner environment. This is a vivid demonstration of PVCFC’s persistent efforts towards sustainable development, not only in production and business but also in protecting the ecosystem and the community.