Energy behemoths set stage for new commitments

October 11, 2023 | 11:44
(0) user say
Major names in global energy are boosting interest in pumping money into offshore wind ventures in Vietnam in line with increasing net-zero ambitions.
Energy behemoths set stage for new commitments
Energy behemoths set stage for new commitments, illustration photo/ Source:

British multinational oil and gas giant BP is one of those pursuing its ambitions to develop offshore wind power projects in this country.

An MoU in the research and transfer of wind power technology between BP and Quang Ninh Department of Science and Technology was signed within the framework of the Techconnect and Innovation Vietnam event on September 30.

Alessandro Antonioli, country head for offshore wind at BP based in London, said at the event that the northern province of Quang Ninh, an emerging industrial base in northern Vietnam, had many good natural conditions to build wind power plants. Besides this, the province also attracts millions of tourists each year and is also a locality with the ability to draw in investment and develop clean energy sources.

“Going forward, we will work with the local authorities to discuss solutions to promote investment, and connect with other stakeholders in the area to collect data and develop energy plans. Wind is suitable for the province’s economic development situation,” he said.

Last year, BP and Vietnamese private group Sovico proposed a 3GW offshore wind project in the same province. Under that, three phases will be used to build the farm: the first will take place in the 2027-2030 period and have a 500MW capacity; the second and third phases will follow in the 2030-2035 period and have a combined 2,500MW capacity.

By 2030, 6GW of capacity is required by the nation’s Power Development Plan VIII. To make this possible, work is being carried out to finish the maritime spatial plan and other legal foundations needed for Southeast Asia’s first offshore wind farms. Given the lengthy lead periods involved with offshore wind projects, it is imperative that this framework is established as soon as possible, BP’s Antonioli said.

“The prerequisite factor is policy improvement. Wind energy developers not only need money but also need policies to develop,” he added.

He proposed that in addition to support from the government through a complete policy framework and reasonable licensing process, power purchase agreements should also be able to borrow capital and find capable financial investors.

In March, BP also signed an MoU with VinFast to explore collaboration opportunities in providing integrated energy and mobility solutions for the Vietnamese company and its customers globally. The pair will also explore working together to advocate for commercial and private access to renewable energy sources to power electric vehicle charging networks.

Danish energy behemoth Orsted is one of the European businesses spearheading efforts to enter the offshore wind market in Vietnam. One of the biggest offshore wind energy providers in the world, the group started working with another local private T&T Group to investigate related projects.

Meanwhile, energy groups such as Equinor and Sumitomo have all shown ambition in offshore wind in Vietnam.

Marine planning a prerequisite for offshore investment plans Marine planning a prerequisite for offshore investment plans

Vietnam may require a more active planning process and appropriate policies to reach its offshore wind capacity goal of 6GW by 2030.

HCMC proposes 6,000MW Can Gio offshore wind power plant in PDP8 HCMC proposes 6,000MW Can Gio offshore wind power plant in PDP8

Ho Chi Minh City Department of Industry and Trade has put forth a proposal to incorporate the Can Gio offshore wind power plant, boasting a capacity of 6,000MW, into the forthcoming Power Development Plan VIII (PDP8).

Bac Lieu’s wind power farm: A must-see destination for sunset lovers Bac Lieu’s wind power farm: A must-see destination for sunset lovers

Bac Lieu leads the way in the Mekong Delta and around Vietnam in the development of offshore wind power projects. Visitors to the southern land can experience the stunning beauty of its wind power farm at sunset.

By Nha Phuong

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional