An offshore wind farm in development in Soc Trang, Vietnam, as a project of a global renewable energy company and a Vietnamese corporation has received investment approval from the Vietnam province.
Renewable energy company Mainstream Renewable Power has received a “Decision on Investment and an Investment Registration Certification” from the government of Soc Trang province for the first 200 megawatts of the Phu Cuong Soc Trang Offshore Wind Farm, a press release said.
Phu Cuong Group, a Vietnamese corporation, has been developing the offshore wind farm located off the southern coast of Vietnam since 2014. Mainstream Renewable Power entered a joint venture agreement with Phu Cuong Group in 2017 to co-develop the project, the project’s website said. Mainstream owns 70% of the asset, and the Phu Cuong Group owns 30%.
“Also known as an IRC, an investment registration certificate is an electronic document issued by the Vietnamese government to foreign investors. The certificate states the involvement of a foreign investor in a registered investment project in Vietnam,” the Vietnam Registration Company website said. “The information contained in the certificate includes details of the foreign investor, the objectives of the investment, the duration of the project and the requirements of the project.”
A province in the Mekong Delta of southern Vietnam, Soc Trang has an approximate population of 1.2 million.
“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 press release said. “The project is anticipated to reach financial close in 2022, enabling first power to commence as early as 2023.”
Cameron Smith, Mainstream’s general manager for APAC (Asia-Pacific), said in the press release that the government of Soc Trang province should be commended for encouraging the development of renewable energy in Vietnam.
“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,” Smith said.
The offshore wind farm will make “a major contribution towards the country’s carbon neutrality roadmap,” Nguyen Viet Cuong, chairman of the Phu Cuong Group, said in the press release.
“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,” Nguyen Viet Cuong said. “The government’s supportive policies to promote renewable energy are important for promoting foreign direct investment in co-operation with Vietnamese partners.”