Japan’s JERA acquires stake in Vietnamese firm for renewables expansion
Japan’s largest power company JERA has acquired a 35.1% stake in Vietnamese firm Gia Lai Electricity JSC from the World Bank’s investment arm IFC and Armstrong S.E. Asia Clean Energy Fund Pte.
JERA, a 50-50 joint venture between Tokyo Electric Power Co. (Tepco) and Chubu Electric Power, announced Tuesday its takeover of all holdings of IFC and the Singapore-based investment firm in the Vietnamese company, but did not disclose the price.
The acquisition is expected to be completed after necessary regulatory approvals, JERA said, adding the deal was made through its subsidiary JERA Asia Pte.
The deal makes the Japanese company the largest foreign stakeholder in Gia Lai Electricity, a power unit of Ho Chi Minh City-based TTC Group, which has interests in energy, agriculture, real estate, tourism and education.
Gia Lai Electricity, listed on the Ho Chi Minh Stock Exchange as GEC, owns and operates hydro, solar and wind power projects with a capacity of around 600 megawatts, including projects under construction.
As Vietnam seeks to shift to cleaner energy and achieve carbon neutrality by 2050, the TTC subsidiary has plans to expand its power generation assets to 1.7 gigawatts by 2025, mainly comprising solar and wind power.
“As one of Japan’s leading energy companies, our objectives are to contribute to both economic growth and decarbonization across Asia, and this investment represents another milestone in this effort. As a shareholder in GEC, we will support its expansion of renewables in Vietnam,” a company release quoted JERA Asia CEO Toshiro Kudama as saying.
JERA said the Japanese major has recently established a new corporate vision for 2035, “to scale up its clean energy platform of renewables and low greenhouse gas thermal power, sparking sustainable development in Asia and around the world.”
TTC chairman Dang Van Thanh said his group had an interest in discussing with JERA the potential of liquefied natural gas (LNG)-fired power, an area that has recently caught great attention in Vietnam, which is also one of JERA’s strengths.
This March, JERA announced the start of full-scale operations of its Vietnam subsidiary, JERA Energy Vietnam Co.
“JERA has positioned Vietnam as a priority country and is considering the development of several LNG-to-power projects that will contribute to both decarbonization and a stable supply of energy, supporting economic growth,” the Japanese company had said then.
JERA Energy Vietnam has started work on the basic design for a 4.5 GW project in Hai Phong city’s Tien Lang district. It is a multi-billion dollar integrated gas-for-power development JERA has been pursuing together with American giant ExxonMobil.
The domestic subsidiary is also responsible for furthering LNG-to-power projects in Vietnam and exploring new projects, including in renewable energy.
The industrial and logistics market in Ho Chi Minh City, Dong Nai, Binh Duong, Long An, and Ba Ria-Vung Tau will continue to grow in 2022-2023 thanks to Vietnam’s resilient economic expansion, according to Cushman and Wakefield.
Real Estate - Fri, September 30, 2022 | 3:32 pm GTM+7
Building a Vietnam bonded warehouse for U.S. cotton would benefit both countries, Vietnam Textile and Apparel Association (Vinatas) chairman Vu Duc Giang said Friday.
Industries - Fri, September 30, 2022 | 3:19 pm GTM+7
Thailand's Central Retail is seeking opportunities to build malls and supermarkets in Binh Thuan province.
Industries - Fri, September 30, 2022 | 3:05 pm GTM+7
Vietnam’s benchmark VN-Index dropped 17.55 points Thursday to 1,126.07, despite newly-released data showing the country’s nine-month GDP growth hitting 8.83%, a record high in 12 years.
Finance - Thu, September 29, 2022 | 5:18 pm GTM+7
Hoa Phat Group has begun production at its new home appliance factory worth VND1,000 billion ($42 million) in Ha Nam province.
Industries - Thu, September 29, 2022 | 4:28 pm GTM+7
The U.S., EU, China and South Korea imported nearly $27 billion worth of phones and components from Vietnam in the first eight months of the year, according to the Ministry of Industry and Trade.
Economy - Thu, September 29, 2022 | 4:06 pm GTM+7
The northern port city of Hai Phong seeks to build 15 more industrial parks totaling 6,200 hectares to attract $15 billion in foreign direct investment in 2020-2025.
Industries - Thu, September 29, 2022 | 3:13 pm GTM+7
Vietnamese tech giant Viettel has selected Taiwanese 5G solutions supplier UfiSpace to jointly deploy disaggregated cell site gateways for Viettel’s massive 5G rollout in Vietnam.
Industries - Thu, September 29, 2022 | 2:27 pm GTM+7
The Ministry of Industry and Trade has proposed that the government includes five coal-fired thermal power projects in the national power development plan VIII.
Energy - Thu, September 29, 2022 | 1:16 pm GTM+7
Vietnam’s economic growth of 8.83% year-on-year in the first nine months is the highest recorded in 12 years.
Economy - Thu, September 29, 2022 | 12:19 pm GTM+7
Vietnam is an increasingly attractive and important investment destination for U.S. firms, and one of the five most significant locations for Warburg Pincus, its CEO Charles Kaye said Wednesday.
Industries - Thu, September 29, 2022 | 11:05 am GTM+7
Japan's Tokyo Gas and Kyuden Group have inked a memorandum of understanding with Truong Thanh Vietnam JSC on jointly developing an LNG-to-power project with a phase-one capacity of 1,500 megawatts in northern Vietnam.
Energy - Thu, September 29, 2022 | 6:30 am GTM+7