Ørsted and T&T Group, a leading Vietnamese cross-industry company, have signed a memorandum of understanding covering the launch a strategic collaboration on offshore wind in Vietnam.
The collaboration brings together a multi-GW pipeline of greenfield offshore wind projects located off the coasts of the Binh Thuan and Ninh Thuan provinces, Vietnam's most suitable areas for offshore wind development. Both partners intend to apply their groups' joint capabilities to mature this offshore wind pipeline and work to support the development of an effective regulatory framework for offshore wind and a successful new industry in Vietnam.
With more than 3200 km of coastline and high, consistent, wind speeds, Vietnam has some of the best conditions for developing offshore wind in Asia. The World Bank Group estimates Vietnam's offshore wind potential to be up to 500 GW. In addition to this potential, Vietnam's rapidly growing demand for power means there is an urgent need for new large-scale reliable power sources in the coming decades. These factors, in combination with Vietnam's strong supply chain potential, have convinced Ørsted and T&T Group that offshore wind has a central role to play in Vietnam's future power mix.
Do Quang Hien, T&T Group president and general director, commented: "Ten years ago, we began researching and preparing for the development of renewable energy in order to be ready when the time was right. This has resulted in T&T’s completing several large solar PV projects and being on track to complete five big onshore wind projects by the end of this year. Energy is a strategic focus for the T&T Group, and with this collaboration with Ørsted … we look forward to accelerating our plans and bringing valuable experience and international investment capital to the offshore wind sector in Vietnam."
Matthias Bausenwein, president of Ørsted Asia Pacific, said: "This MOU is a major step for Ørsted in establishing a strong foothold in Vietnam and in showcasing our aspiration to be a reliable long-term partner in this country.”