Sembcorp Industries‘ wholly owned subsidiary Sembcorp Utilities and Bamboo Capital Group (BCG)’s wholly owned subsidiary BCG Energy (BCGE) have entered a tie-up to collaborate on developing renewable projects in Vietnam, the two companies said in a filing to SGX Thursday.
Sembcorp is seeking to boost the size of its renewables portfolio in Vietnam, the filing said.
“Vietnam is a key growth market for Sembcorp in this region as we transform our portfolio from brown to green. BCG Energy is an established and strong local developer in both wind and solar projects, and we’re pleased to partner them to bring in our next wave of investment in renewables to Vietnam,” Koh Chiap Khiong, CEO of Singapore and Southeast Asia for Sembcorp Industries, said in the statement.
Pham Minh Tuan, vice chairman of Bamboo Capital Group and CEO of BCG Energy, pointed to the Vietnam government’s plan to prioritise developing renewable energy, with a plan to reduce net emissions to zero by 2050.
“With BCGE devoting resources to developing solar and wind power projects and LNG research, it demonstrates that we are moving in the right direction for the Vietnamese market,” Pham said. “The partnership between BCGE and Sembcorp not only brings economic benefits to both companies, but also promotes the clean energy transition in Vietnam, contributing to Vietnam’s emission reduction goals in the future.”
The partners plan to identify and jointly develop a pipeline of up to 1.5GW of wind and solar projects in Vietnam, the companies said.
The first phase will involve the initial funding of US$30 million to develop a 550MW portfolio of utility-scale nearshore and onshore wind assets in Veitnam, in Ca Mau, Tra Vinh and Soc Trang, the filing said. Those projects were secured by BCGE and are expected to come online by end-2022, the filing said.
BCG has been a pioneer of Vietnam’s renewable energy industry, with local market knowledge and experience developing large-scale infrastructure projects, while Sembcorp has invested in Vietnam for more than 20 years via integrated energy and urban-management projects, the filing said, pointing to Sembcorp’s Vietnam Singapore Industrial Park (VSIP) project.