Last week, in Hanoi, the PetroVietnam Power Corporation (PV Power) along with Asong Invest and PVCB Capital signed an MoU to co-invest and co-operate in Vietnam’s green industry.

Representatives attending the ceremony included Attaché Min Moonki from the Embassy of the Republic of Korea in Vietnam, Mr. Hoang Van Quang. Chairman of PV Power, Mr. Hoon Sung, CEO of Asong Invest, Mr. Tran Quang Vinh, Director of PVCB Capital, and staff from KOTRA, K-SURE, KEXIM Bank, KDB Bank, and Woori Bank.

Mr. Quang said that as the second-largest electricity producer in Vietnam, PV Power is doing its best for the country’s energy security. In order to contribute to the implementation of Vietnam’s net-zero commitment at COP26, in parallel with LNG power projects to meet the urgent electricity demand for economic development, PV Power will also develop renewable energy projects such as solar power, wind power, stored hydroelectricity, biomass power, and waste-to-energy power, etc. At the same time, it will implement fuel production projects such as green hydrogen / ammonia to gradually replace fossil fuels in coal and gas power plants, contributing to Vietnam’s energy transition.

He also emphasized that “the partnership with Asong Invest and PVCB Capital as well as enterprises in the research and development of renewable energy projects, is an important milestone marking PV Power’s determination in diversifying its investment portfolio, focusing on green energy sectors. We hope that this MoU will facilitate professional connections and create a foundation for sustainably cooperating with businesses.”

“Energy security and sustainability are important issues,” said Mr. Byun. “The world faces the challenge of mitigating the negative impacts of climate change and reducing dependence on polluting fossil fuels. The use of renewable energy sources has been recognized as a key factor in promoting sustainable development, which aims to meet the needs of present generations without compromising the future.”

“With the leadership and guidance of PV Power, we will review many new potential renewable energy projects, ranging from onshore wind power to mid-sized hydraulic power, floating solar power, waste-to-energy, and even pumped storage hydraulic power,” he went on. “The co-operation between PV Power and Asong and the assistance and support from other participating parties will create a better Vietnam and a better world through the renewable energy transformation program.”

According to the MoU, PV Power, Asong Invest, and PVCB Capital will co-operate in identifying investment opportunities to develop projects in renewable energy, including solar power projects, hydropower projects, and stored hydropower projects, wind power projects, and hydrogen production, and programs to develop Vietnam’s carbon credit market.

The parties will cooperate in the research and development of renewable energy projects with a scale of about $2 billion by 2025. To invest in selected projects, they will invest capital / shares, corporate bonds, etc., of businesses and companies with projects. The parties agree to register these in the Vietnam - Korea Carbon Certificate Trading Market under the ITMO agreement (the Paris Agreement stipulating that countries can use “Internationally Transferred Mitigation Outcomes”) to develop a sustainable carbon credit trading market between two countries. In addition, Asong Invest and PVCB Capital will expand co-operative opportunities with PV Power’s subsidiaries in other potential projects.

The cooperation with Asong Invest and PVCB Capital will support for PV Power to develop in the field of renewable energy in accordance with the approved strategy by the company and PetroVietnam. In addition, this cooperation will also open up opportunities to seek financial sources to implement projects developed by the corporation through investment funds.