Norwegian energy giant opens rep office in Hanoi

Norway's largest energy company Equinor on Thursday established its representative office in Hanoi, seeking to partner with Petrovietnam to develop wind power projects across the country.

The move marked "an important milestone" in the Norway-Vietnam business cooperation portfolio, the Norwegian Embassy in Hanoi stated in a release.

Equinor’s Senior Vice President, Jens Olaf Økland, said Vietnam is one of the world’s fastest-growing economies and power markets.

"With its long coastline and favorable wind conditions, the country has among the best wind resources in Asia and a strong desire to develop an offshore wind market. We believe Vietnam has high potential to become an interesting growth market for offshore wind."

By establishing a local presence in Vietnam, Equinor also wants to collaborate with its Vietnamese partner, Petrovietnam, to "build a strong local supply chain for the offshore wind industry, generate power at lower costs, gradually make renewable energy affordable for all, and assist Vietnam’s green transition agenda."

Pham Tien Dung, Vice President of Petrovietnam, said Equinor and Petrovietnam are both state-owned oi and gas corporations that seek to transform into energy companies. “To us, Equinor is the main and important partner in the renewable energy portfolio, particularly offshore wind."

Together with Petrovietnam, Equinor has applied to develop projects in five provinces in Vietnam, namely Ba Ria-Vung Tau, Binh Thuan, Ninh Thuan, Hai Phong and Thai Binh.

With over 3,000 kilometers of coastlines, Vietnam has an abundant offshore wind resource and is an emerging market for offshore wind. According to the World Bank, offshore wind has the potential to supply 12% of Vietnam’s electricity by 2035.

By gradually replacing coal-fired production, nearly 200 million metric tons of CO2 emissions might be avoided, while adding at least $50 billion to Vietnam's economy. It will also bring in additional long-term international climate financing and investments to the country, the bank noted.

Equinor is currently a leader in energy transition, having presence in 33 countries. Aside from being the world pioneer in floating offshore wind, the heavyweight has many major bottom fixed projects globally, including 3.3-gigawatt (GW) offshore wind in the U.S, 3.6 GW in the UK, and large projects in Poland.

The Norwegian Embassy said the move also reaffirms Norway's willingness to contribute to the growth of Vietnam's offshore wind industry, and the country's green transition process as per its commitments in the Paris Agreement and COP26.

The country aims to retain its leadership in climate finance and other support to developing countries. Norway's climate finance will be doubled by 2026, with a plan to allocate $1 billion (NOK10 billion) over five years to a new climate fund managed by Norfund, the Norwegian Fund for Developing Countries.