Mainstream, Phu Cuong Group closing in on financial close in Vietnam

Mainstream Renewable PowerMainstream Renewable Power has announced a major step towards financial close for its Phu Cuong Soc Trang offshore wind project in Vietnam.

The co-developer, which is working with the Phu Cuong Group, has received a Decision on Investment and an Investment Registration Certificate from the provincial government of Soc Trang. This covers the project’s first 200 MW and enables financial close for this phase to be expected in 2022. First power could follow as soon as 2023.

Once complete, the 1.4 GW Phu Cuong Soc Trang offshore wind farm will generate sufficient electricity to power over 1.6 million homes, and will mitigate 1.8 million tonnes of CO2 emissions per year. It is being developed in phases.

“We are excited to be a part of Vietnam’s energy transition with the Phu Cuong Soc Trang project, which is being developed to the highest international standards, drawing on Mainstream’s extensive experience”, said Cameron Smith, Mainstream’s General Manager for APAC. “Being leaders in renewable development in many countries, we understand the importance of community engagement, and we are pleased to have had such positive support from the Soc Trang community.

“We commend the government for the progress made in encouraging the development of renewable energy in Vietnam to date. The Phu Cuong Soc Trang project promises to be a catalyst for the development of a true offshore wind industry of a scale that will promote the achievement of net zero by 2050.”

Going forward, Mainstream intends to work closely with national utility EVN to finalize the grid connection agreement and a Power Purchase Agreement for the 200 MW first phase.

Mainstream, a company 75% owned by Aker Horizons, has had a presence in Vietnam since 2016. It is developing 2.3 GW of solar and offshore wind in the country. For this project, it owns 70%, while Phu Cuong Group owns 30%.

Mr Nguyen Viet Cuong, Chairman of the Phu Cuong Group, said: The Phu Cuong Soc Trang offshore wind farm is an essential investment in Vietnam’s clean energy infrastructure and will make a major contribution towards the country’s carbon neutrality roadmap. This wind farm, which will be the largest in the region, will play a key role in accelerating the development of Vietnam's economy by promoting the growth of industrialization. The government’s supportive policies to promote renewable energy are important for promoting foreign direct investment in co-operation with Vietnamese partners.”

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