Energy arm’s UPCoM debut a boost for Vietnamese conglomerate Bamboo Capital

BCG Energy JSC, a subsidiary of Vietnam’s private conglomerate Bamboo Capital Group, began trading 730 million shares on the unlisted public companies market UPCoM on Wednesday with reference price set at VND15,600 ($0.62) per share.

BCG Energy has a charter capital of VND7.3 trillion ($289 million), equity of nearly VND10 trillion ($396 million), and total assets of nearly VND20 trillion ($792 million).

Among the top three leading renewable energy enterprises in Vietnam with involvement in many large-scale projects nationwide, the company has been selected as local partner by large international corporations and financial institutions investing in Vietnam.

Huge portfolio, positive indicators

Established in 2017 with the vision of becoming a leader in the renewable energy sector, BCG Energy has been working tirelessly to realize its ambitious goals.

From 2018 to 2020, it rolled out four major renewable energy projects: BCG Long An 1 solar power plant, BCG Long An 2 solar power plant, BCG Vinh Long solar power plant, and the cluster of the BCG Phu My 1, BCG Phu My 2 and BCG Phu My 3 solar power plants.

It has also installed rooftop solar power systems at export processing zones and industrial parks, raising its total electric output to nearly 600 MW. The above mentioned four projects, which will enjoy preferential FiT prices for 20 years, have been generating annual stable revenues. This has formed a solid foundation for the company to establish its position in Vietnam’s renewable energy market.

Vietnam’s approval of the Power Development Plan VIII (PDP VIII) has opened a new chapter for renewable energy enterprises in general and BCG Energy in particular.

The priority that the plan accords to renewable energy development, especially wind power, affirms Bamboo Capital’s wise vision and strategy in clean energy.

BCG Energy currently owns a project portfolio of nearly 1 GW approved under the PDP VIII, with implementation set for completion by 2030.

Notably, a series of large-scale wind power projects, including Dong Thanh 1 (80 MW) and Dong Thanh 2 (120 MW) in the southern province of Tra Vinh, as well as the Khai Long 1 (100 MW) project in the southernmost province of Ca Mau, will break ground this year and become operational in 2025. When this happens, the firm’s total electric output will go up by approximately 53%.

On July 20, Bamboo Capital Group and BCG Energy started constructing the Tam Sinh Nghia waste-to-energy plant in Thai My commune, Cu Chi district, Ho Chi Minh City.

Phase 1 of the plant will be implemented in 2024-2025 with a total investment of VND6.4 trillion ($253.5 million), a waste incineration capacity of 2,600 tons per day, and a power generation capacity of 60 MW.

Work on phase 2 will take place from 2026 to 2027, increasing waste incineration capacity by up to 6,000 tons per day and an electric output of up to 130 MW, likely making it the largest waste-to-energy plant in the world. Phase 3, carried out in 2027-2029, will have corresponding figures of 8,600 tons and 200 MW.

Alongside construction of the Tam Sinh Nghia waste-to-energy plant, BCG Energy will begin implementing similar projects in the southern provinces of Long An and Kien Giang.

It anticipates that by 2026, the total capacity of completed energy projects will reach 2GW.

In the past three years, the company has consistently recorded positive business results. In 2021, it posted revenues of VND760 billion ($30 million), which rose 40% year-on-year to VND1.06 trillion ($42.14 million) in 2022.

In 2023, this increased by 5.8% to VND1.12 trillion ($44.56 million). In the first quarter of 2024, revenues of VND320.4 billion ($13 million) accounted for 32.5% of Bamboo Capital Group’s total.

Bamboo Capital’s revenue from renewable energy is expected to continue growing robustly in the coming years, driven by the expansion of rooftop solar power projects and the completion of wind power projects in Ca Mau, Tra Vinh, and Soc Trang, as well as the first phase of the Tam Sinh Nghia waste-to-energy plant.

International collaboration, new technologies

BCG Energy has formed partnerships with prominent companies such as Sembcorp Industries, Singapore Power, Hanwha Energy, and Leader Energy Group to develop renewable energy projects in Vietnam. These corporations from Singapore and South Korea are well-regarded for their substantial potential and extensive experience in project management.

In terms of capital mobilization, BCG Energy has tapped funding overseas since 2019. Notably, it sourced $5 million from Hanwha Energy in 2019 and $43.6 million from Leader Energy in 2020, both South Korean firms.

In March 2023, BCG-SP SOLAR 1 JSC, a subsidiary of a consortium between BCG Energy and Singapore-based SP Group, received disbursement of $31.5 million out of a total credit limit of up to $50 million from three Singaporean banks: DBS Bank Limited (DBS), Oversea Chinese Banking Corporation (OCBC), and United Overseas Bank Limited (UOB). The deal was honored by The Asset as the Renewable Energy Deal of the Year.

In June 2023, BCG Gaia JSC, a joint venture between BCG Energy Singapore’s Sembcorp Energy, secured a $77.5 million loan from DBS. Given fluctuations in both international and domestic financial markets, this deal showed the confidence international financial institutions have in the solid business foundation and strong credit profile of BCG Gaia projects.

In addition to experience and project implementation capacity, its ability to collaborate with reputable international partners and financial institutions to mobilize low-interest loans has provided BGC Energy with a competitive advantage, enabling it to achieve significant breakthroughs.

BCG Energy has been continually expanding its international partnership network to leverage advanced technology and expertise from leading corporations. In June, the firm signed a pact with South Korea’s giant SK Ecoplant and the South Korean Ministry of Environment-run Sudokwon Landfill Site Management Corp.

This collaboration aims to develop waste-to-energy projects and waste treatment solutions in southern provinces with potential. These joint efforts will not only help reduce environmental pollution but also generate economic value for both parties.

At the Tam Sinh Nghia waste-to-energy plant in Cu Chi district, BCG Energy has adopted state-of-the-art SUS-Hitachi Zosen Vonroll technology, which has been successfully implemented in hundreds of waste-to-energy plants worldwide. This technology is the optimal choice for Vietnam, where domestic waste is mostly untreated, with high humidity and low calorific value.

By constantly searching for and applying new technologies, BCG Energy has succeeded in reducing costs and optimizing production processes, thereby increasing profits and becming more competitive.

The company sees listing on UPCoM as a significant milestone in its development journey. With total assets of VND20 trillion ($792.82 million) and a series of international collaborations, BCG Energy has said it will enhance its position in the energy industry in Vietnam and the region, aiming to deliver value and achieve a sustainable future for the community at large.