PHI Group to plug power gap

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US-based energy and natural resources firm PHI Group is planning to build two giant coal-fired power plants in Vietnam. The investor last week signed an agreement with Vietnam’s Hoang Ngoc Joint Stock Company to build a 2,000 megawatt coal-fired power plant in southern An Giang province.

It is the second power project in Vietnam PHI Group announced during the past month. In December 2010, the group said it had signed a memorandum of understanding with domestic Sao Nam Group for building a 3,600MW coal-fired power plant in central Quang Tri province.

“We are delighted to work with Hoang Ngoc Company and Sao Nam Group to provide key resources such as financing, technologies, and coal supply for these projects and expect to generate significant long-term value for our shareholders,” said Henry Fahman, chairman of PHI Group.

Total investment capital and construction timelines of those projects were not revealed, but Fahman said PHI Group was working with several international institutional investor groups that have indicated an interest in financing these projects in Vietnam.

“We have financial backup from several major institutional investor groups in Europe and Asia that will be providing the capital and operational expertise for these projects,” he said.

The group stated it had the capability to supply coal to power plants on a long-term basis through its relationships in South East Asia. Last month, PHI Group signed a definitive agreement to acquire approximately 10 million metric tonnes of mineable coal deposits from PT. Bindakar, an Indonesian corporation.

Furthermore, it also partnered with Powerdyne Industries, a US company, to provide a breakthrough coal-combustion-to-steam-energy system that requires 50 per cent less coal to produce the same energy as presently combusted in traditional coal-fired plants.

If PHI Group and domestic partners were successful, they would help address the country’s power supply lagging behind growing consumption. The consumption of electricity in Vietnam during 2010-2020 is projected to at least double gross domestic product growth of 12 per cent per annum, according to the government’s seventh power master plan.

Till 2020, total generation capacity will be 75,000MW. Two-thirds of capacity will be generated from thermoelectricity plants. Investment capital will be mobilised from government bonds, state-owned firms, private and foreign investors.