American energy company AES Corporation has reached an agreement to sell its 51% equity stake in Mong Duong 2 coal-fired power plant in Vietnam to the Czech Republic-based Se.ven Global Investments, the two sides announced on Thursday.
The move is in line with AES’s intent to offload the majority of its coal assets by the end of 2025, the American firm noted in a release.
The 1,242 MW plant in the northern coastal province of Quang Ninh has been in operation since 2015, delivering power under a 25-year power purchase agreement (PPA) with state utility Vietnam Electricity (EVN).
"AES values its strong business relationship with Vietnam, where we have been a strategic partner delivering reliable power while supporting Vietnam's long-term energy transition goals," said Juan Ignacio Rubiolo, AES executive vice president and president of energy infrastructure.
"This sale would advance AES's low-carbon goals while enabling AES to continue to play a role advancing diverse energy solutions to meet the growing electricity demand in the country," he added.
AES will continue to develop the 450 TBTU Son My LNG terminal and the 2,250 MW Son My 2 combined cycle gas power plant in Vietnam. Son My LNG terminal is a cooperation with PV Gas, the gas arm of state-owned Petrovietnam. The project received an investment certificate from the central province of Binh Thuan in July 2023.
The acquisition is part of Sev.en Global Investments’ entry into Asia, the Czech firm said. With this transaction, subject to approval of the Vietnamese authorities, Sev.en Global Investments is strengthening its global presence in power generation and mining sectors.
Sev.en Global Investments is committed to operating the plant per the existing build-operate-transfer (BOT) contract with the highest environmental and safety standards, the firm said.
The acquisition is a significant milestone as it would be the largest Czech investment in Vietnam, said Czech Ambassador to Vietnam Hynek Kmoníček.