PVS in talks with foreign investors for renewable energy investments

May 30, 2023 | 18:44
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PetroVietnam Technical Services Corporation (PVS) has revealed an overview of the company's successful bidding and contract acquisition for offshore wind power projects in various international markets, while emphasising the company's potential to lead in Vietnam's offshore wind power sector.
PVS in talks with foreign investors for renewable energy investments

CEO of PVS Le Manh Cuong said at the firm’s AGM 2023 on May 29 that PVS's involvement in constructing 33 foundations for Taiwanese partners has established an autonomous supply chain, specifically dedicated to PVS and Vietnam as a whole.

Cuong recognises Vietnam's extensive shallow water areas and evaluates them as having the greatest potential in the Asia-Pacific region for offshore wind power. As a result, the installation costs of businesses in Vietnam are expected to be more competitive compared to China, South Korea, or Japan.

Furthermore, there is a rising demand for renewable energy in the Middle Eastern market, which PVS is actively exploring. PVS's leadership is confident that they will emerge as a dominant force in the domestic and regional service market.

According to Cuong, the Power Development Plan VIII explicitly demonstrates support for offshore renewable energy projects without any capacity limitations, and offers backing for electricity exports.

At present, Vietnam only has nearshore wind power initiatives, which ensures that PVS's upcoming projects will remain unaffected by the feed-in tariff prices or issues concerning the nation's power shortage.

Also, PVS does not face the network and transmission challenges experienced by other power companies. In relation to the agreement to export electricity to Singapore, Cuong acknowledged the risks associated with subsurface cables could be a factor influencing the firm’s operations.

“PVS has not encountered any cable-related issues thus far and remains confident in managing the risks associated with its electricity exports. It is important to consider natural factors such as geology, composition, water depth, and marine meteorology, which may impact operations,” Cuong said.

PVS in talks with foreign investors for renewable energy investments
PVS' AGM 2023 on May 29

Furthermore, in addition to the Taiwanese market, PVS has participated in bidding and successfully secured contracts for renewable energy projects from investors in South Korea, Europe, Japan, and the US. The company is also pursuing opportunities in the Australian market.

During the AGM, Cuong also divulged that PVS is currently in negotiations with investors from Singapore, Japan, and other relevant parties regarding investment capital for the renewable energy sector. The firm has also signalled its intention to expand into secondary products such as hydrogen.

“Implementing renewable energy projects is a time-consuming process, involving permit applications and extensive surveys that can take 1 to 2 years before obtaining capital expenditure. PVS is currently in the initial study phase and has not presented a specific plan for increasing capital,” he added.

However, considering the significant scale of their ongoing projects, fundraising activities will need to be initiated during the early investment stage.

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