Copenhagen Infrastructure Partners (CIP), on behalf of its fund CI New Markets Fund I, together with Asiapetro and Novasia, have signed a Memorandum of Understanding (MOU) with Binh Thuan People’s Committee to develop the 3.5 GW La Gan offshore wind project off the coast of Binh Thuan.

The La Gan offshore wind project is one of the first large-scale offshore wind projects in Vietnam with a potential capacity of 3.5 GW which could increase Vietnam’s profile in renewable energy in the country and around the world.

“Findings from the cooperation between the Danish Energy Agency and the Vietnamese Electricity and Renewable Energy Authority emphasize that Vietnam has a technical potential of 160 GW offshore wind, which puts Vietnam at the forefront of most coveted prospective offshore wind markets. Vietnam will need to learn from global experiences to reap the benefits of offshore wind.

“Denmark started 30 years ago with the world’s first offshore wind project commissioned in 1991, and we are proud to be a world leader in this area. We wish to continue sharing Danish knowledge, know-how and our cutting-edge technologies with Vietnam to support Vietnam in realising a green transition in a cost-effective way.”

Kim Højlund Christensen, ambassador of Denmark in Vietnam.

The offshore wind project La Gan will provide Vietnam with access to wind power technology and help Vietnam’s transition to a power system with a high ratio of renewable energy integration and low emissions.

“The signing of the MOU on development of the La Gan offshore wind project between CIP, Asiapetro, Novasia and Binh Thuan province today is an important milestone and it would not be possible without the strong and valuable support and cooperation from the local authorities and partners.

“CIP is a pioneer in the offshore wind industry across Asia Pacific with projects in Vietnam, Taiwan, Korea, Japan and Australia. CIP has some of the most experienced offshore wind professionals and expertise in the industry and extensive know-how in supply chain development. With this project, we commit to cooperate with our local partners to make this project a showcase for successful technology-transfer and utilization of local competences.”

Michael Hannibal, CIP partner.

The project is expected to generate substantial revenue and employment for both Binh Thuan and Vietnam, with an estimated capital expenditure (capex) of up to $10 billion. A successful partnership in this project between the of CIP, Asiapetro, Novasia, and Binh Thuan provinces may also serve as a precedent for attracting other foreign investors to offshore wind projects in Vietnam.