Climate Fund Managers (CFM), the manager of the Climate Investor One (CI1) facility, is pleased to announce the notice to proceed for the construction of the 78 MW Ecotech nearshore wind farm project located in Tra Vinh province Vietnam.
CI1’s Construction Equity Fund is investing US$ 71.2 million for the construction of the 78 MW Ecotech project, which will be the second project developed and funded in collaboration with Korean energy firm ST International. The joint venture leverages CI1’s innovative end to end financing solution with ST International’s extensive knowledge of the Asian energy market.
CI1 and ST International are joined by local partners in developing the project, Ecotech and Janakuasa. The local partners have an established track record in developing power projects in Vietnam and will enhance the execution and implementation capabilities of the development.
Nathan Schmidt, Head of Asia at Climate Fund Managers, stated “Climate Fund Managers and ST International have been able to capitalize on their successful partnership in the Tra Vinh Wind Power Company (48 MW) by moving quickly to expand it Vietnam renewable presence with the investment in the neighboring Hiep Thanh Wind Farm. Climate Fund Managers will actively seek to further increase its Vietnam renewable portfolio alongside its partners and support the Vietnam Government reach its renewable energy targets. ”
Vietnam’s rapid economic growth and growing population is driving demand for new energy. The country’s strong wind and solar resources make it an attractive investment destination for the development of multiple renewable assets in Southeast Asia. Furthermore, Vietnam has set major renewable energy targets seeking to rise from 0.3% renewable energy reliance in 2016, to 21% by 2030.
Ti Chee Liang, Chairman of Janakuasa Pte. Ltd., stated “Janakuasa has been developing power projects in Vietnam in order to promote economic development in the region, and also to support the growth of renewable energy in the country. We have partnered with Climate Fund Managers and ST International because their track record in renewable energy is a good complement with our on-the-ground capability to develop and execute projects in the country.”
Yonghoon Kim, Head of Renewable at ST International, commented “STI has come to Vietnam Renewable sector with Climate Fund Manager and has been building strong partnership through risk management amid COVID 19. Responding to Vietnam’s growing demand for renewable energy, STI has a plan to expand more development pipelines with our expertise from Tra Vinh Wind Farm and Hiep Thanh Wind Farm.”
The Ecotech Project will deliver an estimated 257 GWh of clean energy annually and avoid approximately 123,500 tonnes of GHG emissions per year, thus making a contribution to Vietnams objective to transition to away from fossil fuels and increase their reliance on renewable energy.
About Janakuasa Pte. Ltd.
An established private energy investor based in Malaysia and Singapore, Janakuasa is a leading investor in thermal power and renewable energy in Vietnam. Janakuasa has been developing the Ecotech wind farm project since 2015. To date, Janakuasa has over 1,000 MW of power projects under construction in Vietnam and a further 300 MW of Wind project and 200MW of Mini Hydro in the development stage.
About ST International Co., Ltd.
ST International (STI), a Korean energy company investing in Energy Infrastructure and Renewable Energy. ST International has been shifting its business portfolio from coal mining and conventional power generation to renewable energy in response to global energy transition.
In line with Vietnam’s goal to achieve 6.2GW of installed capacity of wind energy by 2030, STI, which has transformation experience to renewable energy and strong balance sheet, intends to expand its investment in Vietnam.
About 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 renewable energy, water and oceans, sustainable land use 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.
Climate Investor One (CI1) is the inaugural facility managed by CFM, focused on providing capital to renewable energy projects in developing countries. CI1 has a focus on Africa, South & Southeast Asia, and Latin America, and uses a whole-of-life financing approach intended to reduce implementation timelines. The facility also enjoys support from the EU through its External Investment Plan, a 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, the Nordic Development Fund (NDF) and USAID’s Power Africa programme.