On February 24, the La Gan Wind Power Development Corporation, developer of the 3.5 GW La Gan offshore wind farm project owned by Copenhagen Infrastructure Partners, Asiapetro and Novasia, signed four Memorandum of Understandings (MOUs) on foundation supply and harbour services. The MOUs were signed with Vietnam-based contractors: CS Wind Corporation, PTSC Mechanical and Construction (PTSC M&C), Southern Petroleum Construction J.S.C (Alpha ECC) and Vietsovpetro. The signing was conducted virtually taking into consideration of the recent COVID 19 development 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 localize 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 a green development and a green transition in the country’s energy sector. 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 H.E. Mr. Kim Højlund 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 US$ 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, where 1 FTE is 1 job for 1 year. The total Vietnamese content is projected to be approximately 45% 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 localization of the offshore wind industry in Vietnam. It is our intention to ensure that our investments filter to the local economy and the Vietnamese people wherever it is feasible. 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 government of Vietnam’s vision for an energy green transformation. La Gan Wind Power Development Corporation is honoured to partner with these suppliers to realize Vietnam’s vision.’ said Ms. Maya Malik, Chief Executive Officer of the La Gan Wind Power Development Corporation.
Since the signing of the MOU with Binh Thuan People’s Committee in July 2020, the La Gan offshore wind farm project has actively progressed development activities in close collaboration with the 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.
The Danish-Vietnamese Energy Partnership
In 2013, Vietnam and Denmark entered a long-term cooperation agreement with the purpose of promoting a transition in Vietnam to a low-carbon economy. It is financed by the Danish government and administered by the Danish Energy Agency.
The Danish Energy Agency cooperates with the Ministry of Industry and Trade (MOIT) in Vietnam through the joint Energy Partnership Programme (DEPP) between Vietnam and Denmark. The program covers energy efficiency in the industrial sector, integration of renewable energy into the power grid and long-term scenario modeling of the energy sector.
The programme is currently entering its third phase DEPP III (2020-2025). Besides the above-mentioned areas, it will also include offshore wind as a component and a work stream focused on developing economic incentive schemes for energy efficiency improvements in the industrial sector in Vietnam.
The Danish Energy Agency’s Centre for Global Cooperation partners with 16 other countries, which in total account for more than 60% of the global CO₂ emissions. The aim is to share Danish experiences on shaping an energy system that combines a green, low-carbon and reliable energy supply with economic growth.
