Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries, and BCG Energy (BCGE), a wholly-owned subsidiary of Bamboo Capital Group (BCG), have signed a collaboration agreement for the development of renewable projects in Vietnam.
Sembcorp and BCGE will leverage each other’s strengths and resources to identify and jointly develop a pipeline of up to 1.5 GW of wind and solar projects in Vietnam. The first phase of the collaboration will involve an initial funding of US$30 million for the development of a 550-MW portfolio of utility-scale nearshore and onshore wind assets across three provinces in Vietnam – in Ca Mau, Tra Vinh and Soc Trang. These projects have been secured by BCGE and are expected to come online by 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 21.4 GW and 12.5 GW by 2030 respectively.
BCG is one of the pioneers in Vietnam’s renewable energy industry, with extensive experience in developing large-scale infrastructure projects. Sembcorp has invested in Vietnam for more than 20 years through its integrated energy and urban management expertise, and is looking to scale up its renewables portfolio in the country. Sembcorp’s Vietnam Singapore Industrial Park (VSIP) is also a leading name in integrated townships and industrial parks in Vietnam.
Koh Chiap Khiong, CEO of Singapore and Southeast Asia at Sembcorp Industries, 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.”
Pham Minh Tuan, vice chairman of Bamboo Capital Group and CEO of BCG Energy, said, “The Vietnamese government’s draft PDP VIII shows that Vietnam is prioritising the development of renewable energy. At the recent COP26, Vietnamese Prime Minister Pham Minh Chinh also pledged that Vietnam is working to reduce its 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.
“We are very pleased to cooperate with Sembcorp because this is a partner with good experience and reputation in the energy sector in Asia. 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.”