SK ecoplant, part of South Korean chaebol SK Group, and BCG Energy, under Vietnamese conglomerate Bamboo Capital Group, will cooperate to produce 700 MW of renewable energy in Vietnam.
The two sides signed a memorandum of understanding for the move on Friday, SK ecoplant announced. The two companies will jointly develop 300 MW of onshore wind power, 300 MW of rooftop solar power, and 100 MW of onshore solar power.
By participating in the project, SK ecoplant aims to secure carbon credits as part of for the Clean Development Mechanism (CDM) project started by the United Nations Framework Convention on Climate Change in 2021.
SK ecoplant’s experience in renewable energy can utilize Vietnam’s abundant renewable energy sources and contribute to global efforts to reduce carbon, said an executive of the firm.
Besides, SK ecoplant emphasized Vietnam’s potential for renewable energy, such as strong sunlight and high wind speeds thanks to its long coastline.
BCG Energy saw its 2023 net revenues rise 5.8% year-on-year to VND1,125.6 billion ($45.5 million) on outstanding performances by its solar power plants. The company said its solar power plants exceeded expectations and that its rooftop solar portfolio also recorded a robust performance.
The firm’s total assets were down 8.7% year-on-year at VND19,036.6 billion ($770 million) as of end 2023. Its liabilities dropped 31.97% to VND9,300.5 billion after it bought back two bond packages before maturity for VND2,500 billion ($101 million).