Laos expects to obtain at least $613 million each year from selling geothermal power, a type of renewable, to Vietnam.
A geothermal power plant is planned in the land-locked country, aiming to supply 5 gigawatts of electricity to Vietnam under a deal recently signed by Canadian geothermal power developer GEIOS, Lao Development and Investment Co. (LDIC), and Vietnamese private firm Wealth Power Group (WPG).
Under the agreement, the Lao government will annually receive a minimum $613 million from renewable energy sales, Lao News Agency said.
The project is the first geothermal power initiative in Wealth Power Group’s renewables portfolio. Geothermal energy derives from the earth’s core, and though power plants of this kind do not burn fuel to generate electricity, they may release small amounts of sulfur dioxide and carbon dioxide.
There has been no significant geothermal development in either Laos or Vietnam. A 25 MW enhanced geothermal system (EGS) project was planned in Quang Tri province, central Vietnam in 2012 but was abandoned.
GEIOS provides solutions for an efficient, clean, green, scalable, and long-term geothermal application in the worldwide market, according to the Canadian company’s website.