Germany’s PNE seeks Vietnam partners for $4.6 bln offshore wind power project

Germany-based wind energy developer PNE AG is seeking “sustainable partners” in Vietnam to deploy the $4.6 billion Hon Trau offshore wind power project in the central coastal province of Binh Dinh.

PNE executive vice president Thorsten Fastenau made recommendations related to the task at a Monday meeting with Vietnamese Deputy Minister of Industry and Trade Nguyen Hoang Long.

At the meeting, which featured the Delegation of German Industry and Commerce in Vietnam (AHK Vietnam), Fastenau mentioned project implementation challenges and provided updates on wind surveys and pre-feasibility studies for the 2,000-MW project.

Long said Vietnam needs to invest heavily in energy to facilitate growth and renewable energy is an attractive long-term choice. Vietnam will prioritize developing land-based, onshore and offshore wind power as also solar power to avoid power shortages, he added.

He assured PNE of the ministry’s support in solving challenges and implementing the project. He suggested that the project be deployed in phases to ensure that is falls within the purview of Vietnam’s power development plan VIII (PDP VIII).

PNE started studying the Hon Trau offshore wind power project in 2019. In November 2022, the company and Binh Dinh authorities signed a memorandum of understanding to deploy the project.

According to PNE AG’s proposal, the 2,000 MW Hon Trau offshore wind power project would be implemented in three phases, with the first phase seeing 750 MW operational by 2030.

In January 2023, Binh Dinh proposed that the central government add the project to the draft PDP VIII. The plan, adopted in May 2023, envisages generation of 6 GW of offshore wind power by 2030.

Last week, PNE AG said it had already made necessary preparations to deploy the project.

Vietnam has strong fundamentals to localize key components of offshore wind projects, but certain areas need further investment, according to a report titled "Offshore wind supply chain for fast-track scenario in Vietnam" launched by the Norwegian embassy earlier this month.

The existing supply chain used by the domestic oil and gas industry, in conjunction with current onshore and nearshore wind infrastructure, has the potential to support in-country offshore wind developments, particularly foundation, tower manufacturing and maritime infrastructure, the report says.