VIETNAM: EDF TO DEVELOP SON MY GAS FIRED POWER PLANT
On the 2nd of November 2018, during the official visit of France’s Prime Minister Edouard Philippe to Vietnam, EDF, on behalf of the consortium in charge of the development of the Son My 1 gas-fired combined-cycle facility, and the Vietnamese Ministry of Industry and Trade signed a Memorandum of Understanding (MOU) setting out the general framework for the project. The signing of this MOU marks a major milestone by opening the way to the negotiation of different agreements that will ultimately lead to the final investment decision.
The project involves the construction and operation, over a 20-year period, of a 2250-MW high-efficiency and environmentally sustainable combined-cycle gas-fired plant, located in the province of Binh Thuan to the north-east of Ho Chi Minh. It is aligned with Vietnam’s energy diversification policy while fulfilling a dual purpose: meeting the growing demand for electricity and reducing the proportion of coal in Vietnam’s energy mix (34%) in favour of gas and renewables.
Headquartered in Paris, EDF (Electricité de France) is a French electric utility company, largely owned by the French state. Already active in Vietnam via its subsidiary, the Mekong Energy Company in which it holds a 56.25% stake and which operates the combined-cycle Phu My 2.2 facility (715 MW), EDF will use its experience in the construction and operation of combined-cycle plants worldwide. The new facility is expected to be commissioned by 2024.
In March of this year, the EDF Group was appointed leader of the consortium (37.5%) set up to design the project along with its Vietnamese partner Pacific Corporation (25%) and two Japanese partners, Sojitz corporation (18.75%) and Kyushu Electric Power Co (18.75%).
Marianne Laigneau, Senior Executive Vice-President in charge of EDF’s International Division: “The agreement signed today marks a significant step forward in the project’s development. The Son My 1 project has strengthened our footprint in South-East Asia, a strategic region for our international expansion, whilst being perfectly aligned with EDF’s CAP 2030 strategy which seeks to triple the Group’s share of business outside Europe by 2030”. (Source: EDF)