Mainstream Renewable Power Secures Investment Decision from Provincial Government for Flagship Offshore Wind Project in Vietnam
- The 1.4 GW Phu Cuong Soc Trang offshore wind project, being developed as a joint venture between Mainstream Renewable Power and the Phu Cuong Group, is located off the southern coast of Vietnam and will be the largest offshore wind farm in South-East Asia
- The first 200 MW of the project has received a Decision on Investment and an Investment Registration Certificate (IRC) from the Soc Trang Province, representing a significant step towards financial close, expected in 2022
In a vital step for the Phu Cuong Soc Trang Offshore Wind Farm, Mainstream Renewable Power (“Mainstream”) today announces its receipt of a Decision on Investment and an Investment Registration Certification (IRC) from the provincial government of Soc Trang for the first 200 MW of the offshore wind farm. The project, once fully complete, will have a capacity of up to 1.4 GW and will generate enough electricity to power over 1.6 million homes, as well as mitigating 1.8 million tonnes of carbon dioxide emissions each year.
The project is anticipated to reach financial close in 2022, enabling first power to commence as early as 2023.
The project is a joint venture between Mainstream and its Vietnamese partner the Phu Cuong Group, with Mainstream owning 70 percent of the asset and the Phu Cuong Group owning the remaining 30 percent.
The project follows a multi-stage development approach, with 200 MW of capacity set to be delivered in phase 1 and the remaining 1.2 GW to be developed thereafter. Today’s announcement represents a significant milestone for Mainstream’s presence in Vietnam. The project has already completed its wind measurement campaign and other site studies, and the procurement process to secure a wind turbine supplier and balance of plant contractor is well advanced.
Moving forward, Mainstream will work closely with EVN, Vietnam’s national electricity company, to finalise the grid connection agreement, as well as the project’s Power Purchase Agreement (PPA).
Mainstream, which his owned 75 percent by Aker Horizons, has been present in Vietnam since 2016 where it is developing 2.3 GW of solar and offshore wind assets.
Cameron Smith, Mainstream’s General Manager for APAC, said:
“We are excited to be a part of Vietnam’s energy transition with the Phu Cuong Soc Trang project, which is being developed to the highest international standards, drawing on Mainstream’s extensive experience. Being leaders in renewable development in many countries, we understand the importance of community engagement, and we are pleased to have had such positive support from the Soc Trang community.
We commend the government for the progress made in encouraging the development of renewable energy in Vietnam to date. The Phu Cuong Soc Trang project promises to be a catalyst for the development of a true offshore wind industry of a scale that will promote the achievement of net zero by 2050.”
Mr Nguyen Viet Cuong, Chairman of the Phu Cuong Group, said:
“The Phu Cuong Soc Trang offshore wind farm is an essential investment in Vietnam’s clean energy infrastructure and will make a major contribution towards the country’s carbon neutrality roadmap. This wind farm, which will be the largest in the region, will play a key role in accelerating the development of Vietnam's economy by promoting the growth of industrialization. The government’s supportive policies to promote renewable energy are important for promoting foreign direct investment in co-operation with Vietnamese partners.”
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Mainstream Renewable Power is a leading pure-play renewable energy company with a global footprint. The company is focused on expanding its high-quality pipeline of more than 16.2 Gigawatts (GW) of wind and solar assets across Latin America, Africa, Asia Pacific as well as the global offshore wind sector. In 2021, Aker Horizons acquired a 75 percent equity stake in the company, enabling Mainstream to accelerate its global expansion plan. www.mainstreamrp.com
About Aker Horizons
Aker Horizons ASA is a planet-positive investment company dedicated to developing companies within renewable energy and technologies that reduce emissions or promote sustainable living. The company is listed on the Oslo Stock Exchange and majority-owned by Aker ASA. Aker Horizons' investment portfolio includes stakes in Aker Carbon Capture, Aker Clean Hydrogen, Aker Offshore Wind and Mainstream Renewable Power. www.akerhorizons.com