Copenhagen Infrastructure Partners (CIP), on behalf of its fund CI New Markets Fund I, together with Asiapetro and Novasia Energy, has signed a memorandum of understanding (MOU) with Binh Thuan People’s Committee to develop the 3.5GW La Gan offshore wind project off the coast of Binh Thuan province.
The signing took place during the Vietnam Energy Summit 2020 High-level Forum yesterday with the witness of many Vietnamese high-ranking national and sector leaders and the industry consortium.
With a potential capacity of 3.5 GW, the La Gan offshore wind project is one of the first large scale offshore wind projects in Vietnam, which could raise Vietnam’s profile in renewable energy within the region and in the world.
The project will provide Vietnam with access to the most advanced and modern wind-power technology and support Vietnam’s transition to a power system with a high ratio of renewable energy integration and low carbon emission.
With an estimated capital expenditure (capex) of up to $10 billion, the project is expected to create significant income and jobs for both Binh Thuan and Vietnam. A successful cooperation between CIP, Asiapetro, Novasia Energy and Binh Thuan province in this project could also serve as a precedent for attracting other foreign investors in offshore wind projects in Vietnam.
As the MOU is being signed, the project partners are 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.
Kim Højlund Christensen, Ambassador of Denmark in Vietnam, said that findings from the cooperation between the Danish Energy Agency and the Vietnamese Electricity and Renewable Energy Authority emphasize 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,” he said.
CIP partner Michael Hannibal stated that the signing of the MOU on development of the La Gan offshore wind project between CIP, Asiapetro, Novasia Energy and Binh Thuan province is an important milestone and it would not be possible without the strong and valuable support and cooperation from the local authorities and partners.
With this project, CIP commits to cooperate with local partners to make this project a showcase for successful technology-transfer and utilization of local competences.
CIP is a Danish developer and investment firm specialized in the energy infrastructure sector. The company was established in 2012 and is today a global leader, market pioneer and the largest financial sponsor with a dedicated energy infrastructure focus.
CIP has seven funds with more than $10 billion in commitment under management. The funds have currently made more than 20 investments in large scale energy infrastructure assets totaling almost 8GW in capacity across the US, the UK, Germany, Spain, and Taiwan.
In addition, more than 15 greenfield energy infrastructure projects are in process to reach final investment decision and start of construction within the next 2 – 3 years.