ArticleWe are thrilled to announce that Bangjie has been awarded a CSP grant to install the first-ever steam-generating heat pump in Vietnam’s textile and apparel sector. This groundbreaking project will significantly reduce emissions by replacing coal and biomass with a steam-generating heat pump that will service the facility’s full energy demand. This will set a precedent for what is possible in the industry in Vietnam and beyond. By harnessing waste heat from existing processes, integrating onsite solar energy, and entering a Direct Power Purchase Agreement, the heat pump will power dyeing, drying, and setting operations while also improving worker comfort through air cooling.
Despite its strong environmental and operational benefits, the project faces a long payback period. With the support of this grant, Bangjie can perform the installation in 2025, strengthening the electrification business case. The grant is 96% direct CAPEX support to the facility, with the remainder OPEX support for project management and impact monitoring. The facility has also received a loan from H&M Group to support the project. In collaboration with Apparel Impact Institute, WWF, and H&M Group, the project will serve as a real-world demonstration for other factories, accelerating the sector’s transition to electrification.
As our Low Carbon Thermal Energy Roadmap outlines, supporting pilot projects like this is a core Aii activity from 2025-2030 to ensure these first-mover projects can provide learnings for the sector and support technologies in shortening their payback period. This project represents a significant step forward in decarbonizing textile manufacturing and creating a scalable model for electrification in the industry.
