Sembcorp Industries Ltd has announced that it is exploring investing through a wholly-owned subsidiary in the development of offshore wind projects in Vietnam with the goal of exporting electricity to Singapore. As per the Singapore-based energy and urban development company, Sembcorp Utilities Pte Ltd and Petrovietnam Technical Services Corporation, a part of the Vietnam Oil and Gas Group, are jointly exploring this opportunity.
Reportedly, the Ministry of Natural Resources and Environment of Vietnam has only granted permission to PTSC for carrying out wind, marine, and geological surveys at the moment. Furthermore, the two companies will work together to obtain conditional approval from Singapore’s Energy Market Authority (EMA) for the project, which is anticipated to cover over 200,000 hectares of sea area across two sites off the coast of South Vietnam. The two companies have received a letter of intent from EMA.
In March 2023, Sembcorp Industries was awarded a contract to build, own, and operate the Manah Solar II Independent Power Plant in Manah, Oman. Oman Power and Water Procurement Company awarded the contract to the company. The contract was secured through a joint venture formed by Sembcorp’s subsidiary, Sembcorp Utilities, and Jinko Power Technologies. The 500 MW solar installation is planned to be operational by 2025 and is backed by a 20-year power purchase agreement with OPWP.
REGlobal’s Views: Singapore is severely dependent on fossil fuel imports for meeting its energy requirements. Such arrangements for importing offshore wind power will help the country to significantly lower its fossil fuel imports.
