4 suppliers join La Gan offshore wind development

The La Gan Wind Power Development Corporation has signed four memoranda of understanding (MoUs) on foundation supply and harbour services. The MoUs were signed with Vietnam-based contractors in including CS Wind Corporation, PTSC Mechanical and Construction (PTSC M&C), Southern Petroleum Construction J.S.C (Alpha ECC) and Vietsovpetro. 

The signing was conducted virtually taking into consideration of the recent Covid-19 development in Vietnam.

The supply of foundations and harbour infrastructure are amongst the most critical elements of the offshore wind supply chain. The signing of these MoUs establishes an important alliance between the La Gan offshore wind farm project and four promising suppliers with extensive local operations. This cooperation will contribute to the ongoing efforts to localize the Vietnamese offshore wind supply chain as well as help to build local suppliers’ capacity to compete in the international market.

Under the MoUs, the La Gan offshore wind farm project and suppliers will loyally work together to promote offshore wind power in Vietnam. In addition, the La Gan offshore wind farm project will facilitate knowledge transfer and provide advice on foundation design, facility layouts, logistics and infrastructure requirements, which will enable the suppliers to serve the offshore wind market to international standards.

According to an economic impact study made by international experts from BVG Associates (World Bank consultants), the 3.5GW La Gan offshore wind farm project will contribute more than $4.4 billion to the Vietnamese economy over the project lifetime. The project is expected to create over 45,000 Full-Time Equivalent (FTE) local jobs in Vietnam, where 1 FTE is one job for one year. 

The total Vietnamese content is projected to be approximately 45 per cent across the full supply chain of the project.

H.E. Kim Højlund Christensen, Ambassador of Denmark in Vietnam said that one of the key priorities in our long-term cooperation with Vietnam is to support green development and a green transition in the country’s energy sector.

"The development of foreign investment projects such as the La Gan project will contribute to further expanding and intensifying our close cooperation with Vietnam in knowledge-sharing and capacity building for industry experts and practitioners, especially in the offshore wind supply chain," said Kim Højlund Christensen.

Maya Malik, chief executive officer of the La Gan Wind Power Development Corporation stated that the engagement of the four suppliers also shows the dedication of local industry leaders to invest in offshore wind energy and to support the government of Vietnam’s vision for energy green transformation. 

Since the signing of the MoU with Binh Thuan People’s Committee in July 2020, the La Gan offshore wind farm project has actively progressed development activities in close collaboration with the local authorities, suppliers and service providers. Once fully installed, the project is expected to power more than 7 million households per year and avoid 130 million tonnes of CO2 emissions over its lifetime.