Sembcorp Utilities, a subsidiary of energy and urban development company Sembcorp Industries, has signed a collaboration agreement with Vietnamese energy company BCG Energy (BCGE) to develop a 1.5GW renewable project pipeline in Vietnam.
The two companies plan to use their knowledge of the sector to jointly develop wind and solar projects in the country.
Sembcorp said it had been investing in Vietnam for more than 20 years via its integrated energy and urban management capabilities.
The company intends to add to its existing renewable portfolio in the country.
BCGE is a wholly-owned subsidiary of Vietnamese investment company Bamboo Capital Group (BCG).
Sembcorp Industries Singapore and South-East Asia CEO Koh Chiap Khiong said: “Vietnam is a key growth market for Sembcorp in this region as we transform our portfolio from brown to green.
“BCGE 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.”
The two companies will initially develop a 550MW portfolio of nearshore and onshore wind farms in Ca Mau, Tra Vinh and Soc Trang provinces, which will require a $30m total investment.
The projects were secured by BCGE and are expected to become operational by the end of next year.
BCGE CEO Pham Minh Tuan said: “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.”
Last month, Siemens Gamesa Renewable Energy signed a memorandum of understanding with BCGE for supplying equipment and technical solutions for wind farm facilities in Vietnam.