CREATING A SUSTAINABLE GREEN ENVIRONMENT

Creating a sustainable green environment
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INNOVATION INITIATIVES BUILDING INTERNAL GREEN INITIATIVES CREATING A SUSTAINABLE GREEN ENVIRONMENT

CREATING A SUSTAINABLE GREEN ENVIRONMENT

CLIMATE CHANGE

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The fertilizer business is significantly affected by climate change and also contributes to its impacts. Climate change is increasing the complexity of crop-related diseases, affecting crop yields, soil fertility, and is a major global concern, particularly in Vietnam. Mitigating the impact of climate change is a crucial and necessary task in the company’s production, business operations, and research and development activities.

Climate change poses serious challenges for businesses, manifested in two main types of risks: physical risks and transition risks. Physical risks include the direct impacts of extreme weather events such as storms, floods, and droughts, which cause property damage and production disruptions. Transition risks, on the other hand, relate to the shift towards a low-carbon economy, requiring businesses to face new policies, technologies, and changes in consumer behavior. To adapt and develop sustainably, PVCFC has proactively assessed risks, formulated sustainable development strategies, and invested in sustainable solutions. Based on this, the company has developed policies, regulations, and procedures for operations, production, business activities, and research and development to minimize the impact of production and product consumption on climate change. Environmental impact assessments have been a priority for PVCFC since the initial phase of the Ca Mau Fertilizer Plant’s operation (in 2011). The company has initiated scientific research projects related to emission reduction, cultivation solutions, and efficient fertilizer use. This commitment is reflected in regulations that ensure compliance and consistency, communicated to every PVCFC employee.

CLIMATE CHANGE RESPONSE POLICY

Research on greenhouse gas emissions in rice cultivation and enhancing R&D activities in response to climate change.

PVCFC is focusing on advancing research and development efforts related to reducing greenhouse gas emissions. Some specific research initiatives include:

  • Annual Research Tasks: Research on cultivation solutions and agricultural services to develop nutrient solution packages for various crops that ensure productivity and quality while also reducing greenhouse gas emissions during fertilizer use.
  • Participation in the Project “Sustainable Development of 1 Million Hectares of High-Quality, Low-Emission Rice Associated with Green Growth in the Mekong Delta by 2030”: This is a key project in the National Strategy on Climate Change through 2050, approved by the Prime Minister in Decision No. 896/QĐ-TTg dated July 26, 2022.
  • Research on Applying the “4Rs” Fertilization Principle: This involves the recommended nutrient management practices by the International Fertilizer Association (IFA), which require the right source, right rate, right time, and right place for fertilizer application.
  • Focusing on Research and Development of New Fertilizer Products: Future product development will emphasize reducing greenhouse gas emissions.
  • PVCFC is also focusing on researching and developing new fertilizer lines that are better adapted to climate change, such as fertilizers that require less water and fertilizers that can better withstand saline or heavily acidic soils.
  • Additionally, PVCFC continues to develop and improve fertilizers (such as Bio Urea, N46 Plus, etc.) to enhance nitrogen absorption rates, improve soil conditions, reduce the amount of fertilizer needed, and consequently decrease the greenhouse gases emitted into the environment during fertilizer use.

GREENHOUSE GAS EMISSIONS REPORT

PVCFC strictly adheres to regulations on greenhouse gas emissions reporting. As a fertilizer manufacturing and trading company, PVCFC complies with Government Decree No. 06/2022/NĐ-CP on regulations for mitigating greenhouse gas emissions and protecting the ozone layer, and Circular No. 38/2023/TT-BCT on measuring, reporting, and verifying greenhouse gas emissions reduction and inventory for the industrial sector. In 2023, we conducted information gathering and assessment as per the following guidelines:

In 2022, direct fuel consumption for the technological system included fuel for auxiliary boilers, reforming units, and the flare system. The total gas consumption in 2023 (555.98 million Sm³/year) increased by 3.42% compared to 2022 (357.57 million Sm³/year). The energy consumption per ton of NH₃ in 2023 was 35,494 GJ/Ton NH₃, a decrease of 4.3% compared to 2022 (35,648 GJ/Ton NH₃). This indicates that projects and improvements made a significant contribution to reducing energy consumption and CO₂ emissions. Currently, PVCFC has not fully implemented CO₂ greenhouse gas emissions reporting according to GHG Protocol guidelines, but the review of data and statistics has been tracked and compared annually. The calculation bases are as follows:

Electricity Emissions: According to the announcement by the Department of Climate Change, Ministry of Natural Resources and Environment on December 31, 2022, the emission factor for Vietnam’s electricity grid in 2021 is 0.7221 tCO₂/MWh.

Natural Gas (1000 m³) according to IPCC: 2.114 tCO₂/unit.

Diesel Oil (DO) (1000 liters) according to IPCC: 2.73 tCO₂/unit.

Gasoline A92, A93 (1000 liters): 2.408 tCO₂/unit.

Emission Activities Unith 2022 2023 Note
A. Direct Emissions (1+2) tons of CO₂/year 381.662,650 393.389,360 Increase of 3,07%
1. Combustion Fuels tons of CO₂/year 379.729,900 391.404,710 Tăng 3,07%
Natural Gas tons of CO₂/year 340.928,500 352.603,310
Permeate Gas tons of CO₂/year 38.801,400 38.801,400
2. Vehicle Fuels tons of CO₂/year 1.932,750 1.984,650 Tăng 2,69%
Diesel Oil (DO) tons of CO₂/year 409,910 872,500
Gasoline A92, A95 tons of CO₂/year 1.522,840 1.112,150
B. Indirect Emissions tons of CO₂/year 128.537,432 136.592,638 Increase of 6,27%
Electricity Consumption tons of CO₂/year 128.537,432 136.592,638
Total Emissions (A+B) tons of CO₂/year 510.200,082 529.981,998 Increase of 3,88%
Emission Intensity tons of CO₂/tons SP 0,494 0,482 Decrease of 2,47%

Based on current calculations, in 2023 the total emissions increased by 3.88% due to a 4% increase in plant capacity compared to 2022. However, the emission intensity per ton of product produced decreased by 2.47%, indicating the effectiveness of the improvements and emission reduction solutions implemented at the Ca Mau Fertilizer Plant.

For the PPC Plant, the two main products are Packaging and Fertilizers; where direct emissions are from the use of DO oil in Fertilizer production, while indirect emissions are mainly from electricity consumption in Packaging production. The direct emissions in 2023 decreased by 50.02% due to a significant reduction in Fertilizer production compared to 2022, while the indirect emissions increased due to higher Packaging production. The total emissions in 2023 decreased by 2.48% compared to 2022, mainly due to the reduction in Fertilizer production, and the emission intensity per ton of product was 3.43% lower than in 2022, as follows:

Emission Activities Unit 2022 2023 Note
A. Direct Emissions (1+2) tons of CO₂/year 406,94 203,38 Decrease of 50,02%
1. Combustion Fuels (Diesel Oil (DO)) tons of CO₂/year 267,19 75,35
2. Fuel for vehicles/equipment (Diesel Oil (DO)) tons of CO₂/year 139,75 128,03
B. Indirect Emissions tons of CO₂/year 2.867,39 2.989,78 Increase of 4,27%
Electricity Consumption tons of CO₂/year 2.867,39 2.989,78
Total Emissions (A+B) tons of CO₂/year 3.274,33 3.193,16 Decrease of 2,48%
Emission Intensity tons of CO₂/ton SP 0,72 0,69 Decrease of 3,43%

SOLUTIONS TO REDUCE CLIMATE CHANGE IMPACT

Alongside technical improvements aimed at increasing production efficiency by reducing the consumption of key production materials such as gas, electricity, water, and chemicals, the company has also focused on reducing direct emissions intensity (Scope 1) and part of indirect emissions (Scope 2). The company has also developed several products with superior features to enhance usage efficiency, such as N46 Plus and BIO Urea (Scope 3). However, calculating the emission reduction intensity for Scope 3 is still not specifically guided both domestically and internationally. The company is also collaborating with research units/partners to continue improving and developing a roadmap for calculating emissions for these new products.
IN 2023, PVCFC PLANTED

300,000

trees

CONTRIBUTING TO THE GOVERNMENT’S “1 MILLION TREES” PROGRAM, AIMING FOR NET-ZERO EMISSIONS BY 2050.

Additionally, the company has emphasized the effective implementation of energy transition and greenhouse gas emissions reduction efforts. In 2023, PVCFC established the Energy Transition and Greenhouse Gas Emissions Reduction Steering Committee to clearly assign tasks and responsibilities to each group and individual. The committee is also responsible for planning and implementing projects such as: integrated food-grade CO2 production systems, CO2 recovery projects from sources like CO2 separation in the fuel gas stream (containing 8% CO2), CO2 recovery from reforming furnace flue gas, rooftop solar energy systems of about 5 MWh at the Ca Mau Fertilizer Plant, and increasing plant capacity by 5% using green hydrogen from electrolysis technology.

Moreover, we have laid out short-and long-term plans to achieve energy consumption reduction and greenhouse gas emissions reduction goals for the 2023-2030 period, with an estimated reduction of 60,000 tons of CO2 per year, as follows:

Period Solution Estimated CO₂ Reduction
Period
2023-2030		 1. Reducing energy consumption based on production capacity, with the current production capacity at 115% 36 thousand tons CO2/ year
2. Applying ORC technology to generate electricity from excess heat sources 1.5 thousand tons CO2/ year
3. Installing a Membrane system to separate and recover CO2 from the production feedstock stream 17 thousand tons CO2/ year
4. Using solar energy to produce green hydrogen through electrolysis technology 5.8 thousand tons CO2/ year

The company strictly complies with legal regulations on emissions into the environment. All emission sources from the plant are tightly controlled in terms of both quantity and quality, ensuring they always meet the regulatory requirements before being released into the environment.

  • Emission monitoring locations: Primary reforming stack, auxiliary boiler stack, granulation stack, with monitoringparameters including dust, Bụi, CO, NOx, SO2, NH3, noise, and vibration according to QCVN: 19/20/09/BTNMT and21/2009/BTNMT.
  • 2023 periodic monitoring results at all locations were within the allowable limits. In addition to conducting periodic environmental monitoring, the company has also installed automated continuous monitoring systems to supervise emissions at several locations and parameters, such as: Granulation stack emissions: flow rate, pressure, dust, temperature, and NH₃; Ammonia stack emissions: temperature, flow rate, pressure, dust, NOx, SO₂; NPK stack emissions: temperature, pressure, dust.
  • The automated, continuous monitoring data is collected every 5 minutes and transmitted directly to the Ca Mau Provincial Department of Natural Resources and Environment.

BIODIVERSITY

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The overuse of chemical fertilizers, unbalanced fertilization, improper application, and excessive use over long periods can have negative impacts on the environment, degrading soil health, harming beneficial organisms, and affecting human health.
PVCFC is committed to protecting biodiversity through the following groups of activities:

Research and Development of Microbial Fertilizers, Organic Fertilizers, Organic Microbial Fertilizers, and Mineral Fertilizers to Improve Soil Microorganisms, Prevent Erosion, and Enrich the Soil

  • Organic fertilizers are produced from organic materials such as manure, soybean residues, plant leaves, and organic waste. The use of organic fertilizers helps reduce the need for chemical fertilizers and minimizes environmental impact due to their eco-friendly, biodegradable, and nutrient-rich properties.
  • Organic microbial fertilizers contain microorganisms capable of nitrogen fixation, phosphorus solubilization, and potassium solubilization, which enrich the soil.
  • Organic microbial fertilizers contain microorganisms capable of biosynthesizing substances or factors that stimulate plant growth (e.g., IAA, ACC deaminase, and Siderophore) or have the ability to form symbiotic/endophytic relationships with plants, thereby enhancing the growth and development of plants.

Additionally, the company is conducting research on microbial products used as biological pesticides to
control insects, nematodes, and plant diseases, such as:

  • Microbial products containing bacterial and fungal strains capable of controlling nematodes harmful to plants.
  • Microbial products containing bacterial and fungal strains capable of controlling insects harmful to plants.
  • Microbial products containing bacterial and fungal strains capable of controlling diseases caused by bacteria, fungi, or viruses.

Based on this direction, during the 2021-2025 period, a range of organic and organic microbial fertilizers, consisting of four formulas, has been developed: One traditional organic fertilizer formula; One organic mineral fertilizer formula; One organic microbial fertilizer formula; One bio-organic fertilizer formula. These developments include the following specific initiatives:

  • Pre-feasibility study on certain microbial strains for nematode parasitism to support the production of organic fertilizers.
    -- Isolation of 204 bacterial strains with ongoing efforts to select the four most effective strains. Sequencing of four gene regions of the isolated fungal strains using molecular biology methods.
    -- IAA Growth Stimulating Substances: Organic microbial fertilizers containing microorganisms capable of biosynthesizing substances or factors that stimulate plant growth (e.g., IAA, ACC deaminase, and Siderophore) or form symbiotic/endophytic relationships with plants, thereby enhancing plant growth and development.
  • Isolation and Identification of Rhizobia Bacteria from root nodules of mung bean plants (Vigna radiata L): Identified 15 strains of isolated bacteria with many beneficial traits for plant growth and development. Some prominent traits include nitrogen fixation, phosphorus solubilization, IAA production, siderophore production, and resistance in heavy metal environments. Besides the Rhizobia group, 26 other bacterial strains were also isolated and identified. Bacillus sp. strains are considered to have many beneficial applications for plants. In this study, Enterobacter sp. strains were highly prevalent among the isolates and demonstrated many favorable traits, such as growth in a wide pH range, temperature tolerance, and high salt concentrations.

Conduct research and monitoring of soil and water quality used by farmers during the usage process to implement appropriate countermeasures

  • Perform soil analysis before each experiment/trial/efficiency assessment to develop suitable fertilizer formulas, helping to save fertilizer and propose appropriate dosages for each type of crop in different soil regions.

Pursuing the Circular Agriculture Approach

Circular Agriculture (CA) is an economic model that maximizes the efficient use of resources and minimizes waste through reuse, repair, recycling, and regeneration of products and materials. Unlike the traditional “produce, use, and dispose” agricultural model, Circular Agriculture focuses on keeping resources within a circular loop to minimize negative environmental impacts and create sustainable value for society. As one of the largest fertilizer manufacturing and trading companies in Vietnam, PVCFC is proud to be a significant part of the CA process, helping farmers increase productivity, reduce costs, and minimize environmental impact. PVCFC participates in the circular agriculture chain through the following activities:

  • Research and guidance for farmers on proper fertilizer use to reduce emissions: Proper fertilization in the right amounts brings positive environmental and social impacts, such as reducing soil, water, and air pollution, and limiting the impact on biodiversity.
  • Research on soil improvement and nutrient-balancing functional product lines to maintain soil health: These functional fertilizers supplement active ingredients that enhance absorption and slow down fertilizer breakdown, thereby contributing to emission reduction in the environment. Additionally, they ensure that crops receive sufficient nutrients for optimal growth, preventing nutrient surplus in the soil (nutrient surplus can lead to soil pollutio

Using “Fertilizers Correctly”

PVCFC has always been a leader in researching and guiding the proper use of fertilizers according to the “5 Rights” principle (right soil type, right crop type, right dosage, right timing, and right method) as stipulated in the Law on Crop Production and related Decrees:

  • Right soil type, right crop type: PVCFC has researched specialized fertilizers for each type of crop and soil to provide recommendations on how to use them. For example: N.46. True: Helps reduce lodging in rice, increases tillering, and promotes branching; N46. Plus, N46. RICH, N46.C+, Urê Bio: Enhances fertilizer efficiency and reduces nitrogen loss.
  • Right dosage: PVCFC has conducted research on the project “Research on Suitable Fertilizer Types and Nutritional Solutions for Mango, Durian, Pomelo, and Jackfruit in the Acid Sulfate Soils of the Dong Thap Muoi Region,” with the following recommendations:
    - Identification of a product range including 10 types of Ca Mau NPK fertilizers that meet the growth and development needs of mango, durian, pomelo, and jackfruit in the business stage on the acid sulfate soils of Dong Thap Muoi
    - Based on this product range, the research team has developed 4 fertilization processes for mango, durian, pomelo, and jackfruit in the business stage in the acid sulfate soils of Dong Thap Muoi
    - Training and transferring Ca Mau fertilization processes for mango, durian, pomelo, and jackfruit in the acid sulfate soils of Dong Thap Muoi to technical staff, agricultural extension officers, and farmers to achieve stable yields and good quality
  • Right timing: The project “Research on Solutions to Improve Fertilizer Efficiency for Rice on Major Soil Groups in the Mekong Delta” (2018) was conducted to determine fertilizer needs at each growth stage.- The research assessed fertilizer responses and developed fertilization formulas for major rice-growing soils in the Mekong Delta using the “Site-Specific Nutrient Management” method
    - According to the results of the project, fertilization following Site-Specific Nutrient Management (SSNM) helps farmers increase their average profit by approximately 10% compared to the fertilization practices of local farmers.
  • Correctly: PVCFC has carried out the S&T task “Developing a soil fertility map and fertilizer recommendations for rice and fruit trees based on ecological zones in the Mekong Delta” to assist farmers in determining the most effective fertilization spots.
  • - The development of a soil fertility distribution map according to ecological zones for the provinces in the Mekong Delta identified 246 fertility units based on the classification of soil chemical indicators such as pH, EC, Organic Matter, CEC, and total N, P, K content
    ‍
    -Statistics on nutrient requirements in the soil according to ecological zones show that the cultivated land for rice in the Mekong Delta, the primary fruit cultivation land in the Mekong Delta, the Dong Thap Muoi ecological subregion, the Ca Mau Peninsula subregion, and the Tien – Hau River alluvial subregion are included.
    ‍
    - According to the results of the task, 65 fertilizer recommendation formulas for rice in the ecological zones of the Mekong Delta have been developed, which can be applied to rice cultivation in the freshwater alluvial ecological zone, covering the largest area of 1,567,472.78 hectares, distributed across 6 ecological subregions. Additionally, the research has developed 57 of the most common fertilizer recommendation formulas for major fruit crops in the Mekong Delta, such as pomelo, orange, longan, durian, mango, and dragon fruit

Research on Soil Health

In all studies, PVCFC has highlighted the issue of increasing fertilizer loss due to farmers applying amounts that exceed recommended levels. Additionally, the current method of broadcasting fertilizers on the field surface leads to significant losses due to leaching, runoff, and volatilization, with 40–50% of nitrogen, 60% of phosphorus, and 50% of potassium being lost. Furthermore, soil acidification, salinization, and nutrient degradation are major challenges in cultivation and meeting the nutrient demands of various crops in the Mekong Delta. The issue raised is the need to identify the current fertility status of the main soil groups based on existing and ongoing research data in the Mekong Delta, in order to develop appropriate management methods and recommend suitable fertilizer application rates for crops on each soil group, thereby helping to reduce costs and increase farmers’ income.

According to the company’s needs and goals, PVCFC has gradually introduced new environmentally friendly product lines to support the sustainable development of the nation’s agriculture. Mastering, updating, and managing the database on the current soil fertility status in the Mekong Delta, as well as determining the nutritional needs of the region’s key crops, are essential for the company’s business direction and product development strategy. The application and updating of the status map of the main soil groups and crops in the Mekong Delta, integrating the database of soil characteristics and the nutritional needs of key crops, and identifying the difficulties and challenges for each soil group and crop have become more accessible.

On this basis, PVCFC has collaborated with Can Tho University to develop a digital map of soil fertility and fertilizer recommendations for crop cultivation in the Mekong Delta. The integration of “big data” will be valuable tools to support the company’s research, product development, and business operations, aiming to enhance business efficiency and reduce labor costs.

PVCFC cooperates with agricultural experts to advise farmers on effective farming techniques.
GENERAL INFORMATION ABOUT PVCFC SUSTAINABLE DEVELOPMENT FRAMEWORK GOVERNANCE - THE FOUNDATION FOR CREATING SUSTAINABLE VALUE BUILDING A MORE PROSPEROUS LIFE CREATING A SUSTAINABLE GREEN ENVIRONMENT THE SUSTAINABILITY REPORT

PETROVIETNAM CA MAU FERTILIZER JOINT STOCK COMPANY

Block d, industrial zone ward 1, ngo quyen street, ward 1, ca mau city, ca mau province
Hotline: 0290.3819000
Tel: 0290.3590501
Email: info@pvcfc.com.vn
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