Siemens joint venture eyes stake in Coro Energy’s Vietnam rooftop solar portfolio

Southeast Asia-focused energy company Coro Energy says it is in talks with Capton Energy for the latter to buy into and invest in its Vietnamese solar power portfolio.

Dubai-based Capton is a joint venture between Siemens Financial Services, an arm of German giant group Siemens AG, and Saudi Arabia’s solar power developer Desert Technologies. It focuses on energy transition infrastructure in Asia, Africa and the Middle East.

The funding proposal received by Coro is that Capton buys into Coro's current Vietnamese solar projects and provides investment into its project pipeline of up to 50 megawatts, Coro announced Thursday.

The company also said it has committed to a four-month period of exclusivity for the parties to conclude their transaction, and the talks were already at an advanced stage.

“We are delighted to be working with Capton Energy, who have both a substantial balance sheet and strong experience in renewables deployment,” Coro managing director Michael Carrington said.

“We look forward to finalizing the arrangements,” he added.

Capton chief executive and chief investment officer Umer Ahmad said the pair would leverage their “capabilities and experience to support underserved sectors of the market with their energy needs by utilizing renewable technologies to positively impact communities and industries.”

Coro has not disclosed how much Capton would invest in its Vietnamese solar portfolio.

Coro is listed on the Alternative Investment Market (AIM) as CORO. AIM is a specialized unit of the London Stock Exchange catering to smaller, more risky companies.

The UK-based energy firm completed commissioning of a Vietnam rooftop solar pilot project last September.

The 3-megawatt project, with more than 4,500 solar panels across four factory roofs in Ho Chi Minh City covering more than 16,000 square meters, is delivering electricity to Vietnamese textile company Phong Phu Corp.

In late 2021, Coro set up Coro Renewables Vietnam as an 85-15 joint venture with Vietnam’s Vinh Phuc Energy JSC. The partnership has a 150 MW portfolio of commercial and industrial rooftop solar projects in the country, Coro said then.

Coro managing director Carrington is also CEO at Coro Renewables Vietnam.