La Gan Wind Power Development Corporation signs four MoUs

La Gan Wind Power Development Corporation signed the MoUs on February 24

The MoUs were signed with Vietnam-based contractors, including CS Wind Corporation, PTSC Mechanical and Construction (PTSC M&C), Southern Petroleum Construction JSC (Alpha ECC), and Vietsovpetro. The signing was conducted virtually, taking into consideration the recent COVID-19 resurgence 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 localise the Vietnamese offshore wind supply chain, as well as help 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.

"I would like to congratulate the La Gan project for making an important and steady step forward today with the signing of the four MoUs on foundation supply and harbour services. 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 Hojlund Christensen, Ambassador of Denmark in Vietnam.

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

"The signings with four Vietnam-based suppliers today confirms our serious commitment to facilitate knowledge transfer and promote the localisation of the offshore wind industry in Vietnam. It is our intention to ensure that our investments filter down to the local economy and the Vietnamese people wherever it is feasible," said Maya Malik, chief executive officer of La Gan Wind Power Development Corporation." The engagement of Alpha ECC, CS Wind, PTSC M&C, and Vietsovpetro also shows the dedication of local industry leaders to invest in offshore wind energy and to support the Vietnamese government's vision for a green energy transformation."

Since the signing of the MoU with Binh Thuan People’s Committee in July 2020, the La Gan offshore wind farm project has been actively progressing with development activities in close collaboration with 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.