On Dec 9, Sembcorp Industries signed a collaboration agreement with BCG Energy (BCGE) for the development of renewable projects in Vietnam.
BCGE is a wholly-owned subsidiary of Vietnam’s Bamboo Capital Group (BCG).
Under the collaboration, Sembcorp and BCGE will identify and jointly develop a pipeline of up to 1.5 gigawatts (GW) of wind and solar projects in Vietnam.
The first phase of the collaboration will involve an initial funding of US$30 million ($40.9 million) for the development of a 550 megawatt (MW) portfolio of utility-scale nearshore and onshore wind assets across three provinces in Vietnam, namely in Ca Mau, Tra Vinh and Soc Trang. The projects have been secured by BCGE and are expected to come online by the end of 2022.
In the latest draft of its eighth national power development plan (PDP VIII), Vietnam has prioritised the development of renewable energy sources. The draft PDP VIII includes increasing the country’s solar and wind capacity to about 21.4GW and 12.5GW by 2030 respectively.
“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,” says Koh Chiap Khiong, CEO of Singapore and Southeast Asia, Sembcorp Industries.
See also: JPMorgan pursues deals to finance shutdown of coal-fired power
According to Sembcorp, the signing of the agreement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the FY2021 ending December.
As at 12.45pm, shares in Sembcorp Industries are down 1 cent or 0.5% lower at $1.98.
Photo of Sembcorp’ Industries' rooftop solar farm in VSIP Binh Duong, Vietnam: Sembcorp Industries
