(BCG) - Singapore, December 9, 2021 – Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp) and BCG Energy (BCGE), a wholly-owned subsidiary of the Bamboo Capital Group (BCG), announce today that they have signed a collaboration agreement for the development of renewable projects in Vietnam.
BCG is one of the pioneers in Vietnam’s renewable energy industry with strong knowledge of the local market and has extensive experience in developing large scale infrastructure projects. Sembcorp has invested in Vietnam for more than 20 years through its integrated energy and urban management expertise, and is looking to scale up its renewables portfolio in the country. Sembcorp’s Vietnam Singapore Industrial Park (VSIP) is also a leading name in integrated townships and industrial parks in Vietnam.
Under the collaboration, Sembcorp and BCGE will leverage each other’s strengths and resources to identify and jointly develop a pipeline of up to 1.5GW of wind and solar projects in Vietnam.
In the latest draft of its eighth national power development plan (PDP VIII), Vietnam has prioritised the development of renewable energy sources. The draft PDP VIII includes increasing the country’s solar and wind capacity to about 21.4GW and 12.5GW by 2030 respectively.
Koh Chiap Khiong, CEO of Singapore and Southeast Asia, Sembcorp Industries said: “Vietnam is a key growth market for Sembcorp in this region as we transform our portfolio from brown to green. BCG Energy is an established and strong local developer in both wind and solar projects, and we’re pleased to partner them to bring in our next wave of investment in renewables to Vietnam.”
Pham Minh Tuan, Vice Chairman of Bamboo Capital Group and CEO of BCG Energy said: “The Vietnamese Government’s draft PDP VIII shows that Vietnam is prioritising the development of renewable energy. At the recent COP26, Vietnamese Prime Minister Pham Minh Chinh also pledged that Vietnam is working to reduce its net emissions to zero by 2050. With BCGE devoting resources to developing solar and wind power projects, it demonstrates that we are moving in the right direction for the Vietnamese market.
“We are very pleased to cooperate with Sembcorp because this is a partner with good experience and reputation in the energy sector in Asia. The partnership between BCGE and Sembcorp not only brings economic benefits to both companies, but also promotes the clean energy transition in Vietnam, contributing to Vietnam’s emission reduction goals in the future.”
Recently, BCG and BCG Energy have been constantly expanding their diverse partner ecosystem of local and international organizations to attain the target of reaching renewable energy capacity from 1.5GW to 2GW by 2023. At the end of July 2021, BCG Energy and SP Group formalized a joint venture to invest in rooftop solar and explore other renewable energy projects in Vietnam with an initial target to develop 500 Megawatts (MW) of rooftop projects by 2025. On October 31st, at United Nations Climate Change Summit COP26 in the UK, BCG Energy signed a memorandum of understanding with Siemens Gamesa Renewable Energy SA to secure wind farm equipment worth some USD 400 million, in order to implement 500MW-capacity wind energy projects in Tra Vinh, Soc Trang and Ca Mau provinces.
After that, on November 27th, Bamboo Capital Group, DEEP C Industrial Zones, and Sojitz Corporation signed a Memorandum of Understanding on the three-party cooperation to develop industrial park project and ancillary infrastructure services including rooftop solar systems as well as to conduct research into other types of green energy and storage with expected total investment capital of approximately 250 million USD.