Climate Fund Managers (CFM), the manager of the Climate Investor One facility (CI1), is pleased to announce that construction has begun on one of its flagship projects, a 48MW near-shore wind farm in Tra Vinh province Vietnam.
CI1’s Construction Equity Fund has committed USD 71 million to the project company, “Tra Vinh Wind Power Company”, which is jointly funded by Korean energy firm ST International. Vestas, the pioneering global supplier of wind turbines will act as EPC for the project.
The collaboration makes use of ST International’s extensive knowledge of the Asian energy market, Vestas’s expertise in developing, constructing and operating wind power facilities, and CI1’s innovative end to end financing solution.
As one of the fastest-growing Asian economies, the government of Vietnam are aware of the need to minimize the environmental footprint of their country’s growth. In pursuit of these goals, Vietnam has set significant renewable energy targets, aiming to rise from 0.3% renewable energy reliance in 2016, to 21% by 2030.
The Tra Vinh wind farm will assist Vietnam in meeting its rapidly growing energy demand, whilst supporting their ambition to move away from fossil fuel power in favour of renewable energy. The project is expected to avoid 68,600 tCO2 or equivalent annually, create 500 additional jobs, and serve over 132,500 people.
Andrew Johnstone, Climate Fund Managers CEO, stated “The beginning of construction at the Tra Vinh wind farm represents a significant milestone for Climate Investor One. It is the first large scale development completed by CI1 in Asia, representing the culmination of two years of hard work, innovation, and development. The installation has several innovative features, and is already creating a positive impact at the local level through its community development programme, both hallmarks of CI1’s value contribution to the countries it operates in.”
Tommaso Rovatti Studihrad, Vestas Sales Director for South-East Asia said the following “Partnering with CFM on this ground-breaking project enforces Vestas’ commitment to lead the wind energy transition and introduce further clean electricity generation in Vietnam”.
CI1 also enjoys support from the EU through its External Investment Plan as part of its wider commitment to sustainable development and climate change mitigation, as well as cornerstone support from the Ministry of Foreign Affairs of the Netherlands, Nordic Development Fund (NDF), Green Climate Fund (GCF), and USAID (via Power Africa).
About ST International Co., Ltd.
ST International, a Korean energy company investing in Energy Infrastructure and Renewable Energy. ST International is expanding its business portfolio from existing coal mining and conventional power generation to renewable energy in response to global energy transition.
About Vestas Wind Systems A/S
Vestas is the energy industry’s global partner on sustainable energy solutions. Vestas design, manufacture, install, and service wind turbines across the globe. With +108 GW of wind turbines in 80 countries, they have installed more wind power worldwide than anyone else.
About Climate Fund Managers
Climate Fund Managers (CFM) is a leading blended finance fund manager dedicated to securing a sustainable future through investing across global emerging markets. CFM has a long-term vision to structure cutting edge financing facilities around thematic areas of climate change mitigation and adaptation, including energy, water, sustainable land use, oceans and sustainable cities. CFM is established as a joint venture between the Dutch development bank FMO and Sanlam InfraWorks – part of the Sanlam Group of South Africa.