Japanese firm Toda eyes floating offshore wind power projects in Vietnam

Japan’s Toda Corporation is looking at the prospect of setting up wind meters in the sea off the central coastal province of Binh Thuan to prepare for floating offshore wind power projects using capital from the Japanese government.

At a meeting on Wednesday between the firm and Vietnam's Ministry of Industry and Trade, Toda chairperson and representative director Imai Masanori said the firm was the first in Japan licensed to conduct floating offshore wind power projects in deep seas.

He added the technology, which is relatively rare, has low investment costs, is suitable for seaports and small islands, and can help Vietnam fulfill its COP26 net-zero commitments by 2050.

Toda entered Vietnam in 1993 with a representative office in Hanoi. It established a local subsidiary, Toda Vietnam Co., LTD. in Ho Chi Minh City in 2009. Since then the firm has been providing services in factory expansion, construction, and relocation.

In reply, Minister of Industry and Trade Nguyen Hong Dien lauded Toda’s proposal, affirming that Vietnam has yet to fully utilize offshore wind power due to high investment requirements.

He said Vietnam has yet to develop any offshore wind power projects, while nearshore and land-based wind power projects currently produce 4,000 MW, towards 10,000 MW in 2025.

The minister added investment, research, and development of clean energy is a key energy transition cooperation between Vietnam’s Ministry of Industry and Trade and Japan’s Ministry of Economy, Trade and Industry.

The Japanese government recently announced a package of $10 billion for energy transition in Asia, and Vietnam has been selected as the first location for the implementation of this program on a pilot basis, so Toda’s proposal fits the orientation, he said.

He also emphasized the ministry would work with Toda to build a research and development center and train workers for energy transition in Vietnam. The two sides can cooperate in researching wind power potentials as well as production of green hydrogen and ammoniac, Dien added.

According to state utility Vietnam Electricity's National Load Dispatch Center, electricity generated by wind power in the country peaked at 3,386 MW at 3:20 p.m on December 17, or 85% of the designed capacity, thanks to a strong northeast monsoon. The previous record was 3,077 MW on February 5, 2022.