Tin Thanh Group, a pioneer in renewable energy in Vietnam, has signed an agreement for a $6.4 billion loan from Australia’s Acuity Funding that will fund the former’s investments in Vietnam and the U.S.
According to the agreement signed Monday, Acuity Funding will provide a credit of $1 billion for the construction of four biomass power plants and thousands of hectares for broomcorn cultivation in the southern and central regions of Vietnam.
Another $1.7 billion will finance the construction of a tire recycling and truck service factory in South Carolina, the U.S., in order to serve one million trucks in the American nation, in line with the goals of reducing emissions, cutting costs and transitioning to green energy.
For this project, Tin Thanh Group has already received land and support from South Carolina worth over $500 million.
Another tranche, $3.7 billion, will be used to build a green hydrogen facility in South Carolina, per a project signed in June between Tin Thanh Group and the U.S.-based Air Products Corporation.
The American corporation will provide oxygen production technology to put in boilers, industrial furnaces and nitrogen production to reduce fuel moisture for boilers and industrial furnaces used to supply steam to industrial plants and power plants throughout Vietnam.
Tin Thanh Group has been granted the exclusive technology and trade rights to deploy steam and heat supply projects for industrial plants and coal-fired thermal power plants in Vietnam. This technology can help reduce emissions by up to 90% and save fuel.
Speaking at the signing ceremony, Tran Dinh Quyen, chairman of Tin Thanh Group, said the cooperation is a milestone for Vietnam exporting technologies, patents, and products of innovation to the world while contributing to the targets of reducing emission, protecting the environment and cutting costs and energy consumption. The resources are ready for disbursement for projects in the U.S. in 2023, the executive added.
Australian ambassador to Vietnam Andrew Goledzinowski hailed Tin Thanh Group’s success in securing the deal, noting that green finance remains a huge challenge in Vietnam.