The La Gan project is expected to involve capital expenture of €8.5bn
Copenhagen Infrastructure Partners (CIP) has signed a memorandum of understanding (MoU) with Binh Thuan People’s Committee to develop an offshore wind farm off the coast of Vietnam
The 3.5GW La Gan project off Binh Thuan will be one of the first large-scale offshore farms in Vietnam.
The project will be led by CIP’s CI New Markets Fund I, together with Asiapetro and Novasia.
The CI New Markets Fund I has been created to specifically target the fast growing major new economies with a current focus on Vietnam.
CIP said the project partners were already fully engaged in the project development in close collaboration with the Binh Thuan region and national government authorities, preparing a final investment decision after inclusion of the project into the Power Development Plan of Vietnam.
The project is expected to provide Vietnam with access to the most advanced and modern wind-power technology and support its transition to a power system with a high ratio of renewable energy.
With an estimated capital expenditure of up to €8.5bn, the project is expected to create significant income and jobs for both Binh Thuan and Vietnam.
Cooperation between CIP, Asiapetro, Novasia and Binh Thuan province on this project could also serve as a precedent for attracting other foreign investors in offshore wind projects in Vietnam, the partners said.
CIP partner Michael Hannibal said: “The signing of the MOU on development of the La Gan offshore wind project between CIP, Asiapetro, Novasia and Binh Thuan province today is an important milestone and it would not be possible without the strong and valuable support and cooperation from the local authorities and partners.
“CIP is a pioneer in the offshore wind industry across Asia Pacific with projects in Vietnam, Taiwan, Korea, Japan and Australia.
“CIP has some of the most experienced offshore wind professionals and expertise in the industry and extensive know-how in supply chain development.
“With this project, we commit to cooperate with our local partners to make this project a showcase for successful technology-transfer and utilization of local competences.”
The Danish Ambassador to Vietnam Kim Hojlund Christensen said: “Findings from the cooperation between the Danish Energy Agency and the Vietnamese Electricity and Renewable Energy Authority emphasise that Vietnam has a technical potential of 160GW offshore wind, which puts Vietnam at the forefront of most coveted prospective offshore wind markets.
“Vietnam will need to learn from global experiences to reap the benefits of offshore wind.
“Denmark started 30 years ago with the world’s first offshore wind project commissioned in 1991, and we are proud to be a world leader in this area.
“We wish to continue sharing Danish knowledge, know-how and our cutting-edge technologies with Vietnam to support Vietnam in realising a green transition in a cost-effective way.”