Copenhagen Infrastructure Partners (CIP), on behalf of its fund CI New Markets Fund I, together with Asiapetro and Novasia, has signed a Memorandum of Understanding (MOU) with Binh Thuan People’s Committee to develop the 3.5 GW La Gan offshore wind project off the coast of Binh Thuan. The signing took place during the Vietnam Energy Summit 2020 High-level Forum with the witness of many Vietnamese high-ranking national and sector leaders and the industry consortium.

Copenhagen Infrastructure Partners is a leading global investor in offshore wind and has raised over US$ 10 billion across several renewable energy focussed funds, including the most recent CI IV, set to become the world’s largest renewable energy fund. With the CI New Markets Fund I, CIP is managing a fund specifically targeted at the fast growing major new economies and with a current strong focus on Vietnam.

With a potential capacity of 3.5 GW, the La Gan offshore wind project is one of the first large scale offshore wind projects in Vietnam, which could raise Vietnam’s profile in renewable energy within the region and in the world.

‘Findings from the cooperation between the Danish Energy Agency and the Vietnamese Electricity and Renewable Energy Authority emphasize that Vietnam has a technical potential of 160 GW offshore wind, which puts Vietnam at the forefront of most coveted prospective offshore wind markets. Vietnam will need to learn from global experiences to reap the benefits of offshore wind. Denmark started 30 years ago with the world’s first offshore wind project commissioned in 1991, and we are proud to be a world leader in this area. We wish to continue sharing Danish knowledge, know-how and our cutting-edge technologies with Vietnam to support Vietnam in realising a green transition in a cost-effective way’ said Ambassador of Denmark in Vietnam, Mr. Kim Højlund Christensen.

With an expected capacity of 3.5 GW, the La Gan offshore wind project will provide Vietnam with access to the most advanced and modern wind-power technology and support Vietnam’s transition to a power system with a high ratio of renewable energy integration and low carbon emission.

‘The signing of the MOU on development of the La Gan offshore wind project between CIP, Asiapetro, Novasia and Binh Thuan province today is an important milestone and it would not be possible without the strong and valuable support and cooperation from the local authorities and partners. CIP is a pioneer in the offshore wind industry across Asia Pacific with projects in Vietnam, Taiwan, Korea, Japan and Australia. CIP has some of the most experienced offshore wind professionals and expertise in the industry and extensive know-how in supply chain development. With this project, we commit to cooperate with our local partners to make this project a showcase for successful technology-transfer and utilization of local competences’ said CIP Partner Michael Hannibal.

With an estimated capital expenditure (capex) of up to US$ 10 billion, the project is expected to create significant income and jobs for both Binh Thuan and Vietnam. A successful cooperation between CIP, Asiapetro, Novasia and Binh Thuan province in this project could also serve as a precedent for attracting other foreign investors in offshore wind projects in Vietnam.

As the MOU is being signed, the project partners are already fully engaged in the project development in close collaboration with the Binh Thuan region and national government authorities, preparing a final investment decision after inclusion of the project into the Power Development Plan of Vietnam.

KeyFacts Energy Industry Directory: Copenhagen Infrastructure Partners