Vietnam's largest offshore wind farm
During the meeting, Mr. Ho Quoc Dung, Secretary of the Binh Dinh Provincial Party Committee, briefed the German investors on the province's potential, strengths, and development programs and plans.
Binh Dinh Province boasts a coastline of 134 kilometers, providing significant opportunities for developing the maritime economy. In its development strategy, Binh Dinh aims to position maritime economic development as a key driver for the province. In recent years, the province has focused on investing in transportation infrastructure to enhance connectivity and maximize its strengths and coastal land resources.
According to Mr. Ho Quoc Dung, Binh Dinh is situated along Vietnam's central coast and boasts a well-developed transportation network that includes roads, railways, seaports, maritime routes, and air travel. The North-South Expressway project is underway in Binh Dinh Province, and the government plans to invest further in the North-South high-speed railway, effectively enhancing the province's transportation infrastructure.
The province has been focusing on upgrading Phu Cat Airport to an international airport, which involves constructing an additional runway with an investment of over VND3.01 trillion. Additionally, Binh Dinh is home to Quy Nhon Port, recognized as a major deep-water port that exports goods to 85 countries worldwide.
In its development strategy, especially regarding coastal economic development, Binh Dinh aims to establish tourism, trade, and industrial development zones while actively attracting renewable energy projects, green energy initiatives, and hydrogen projects. The province has already prepared plans to accommodate upcoming coastal and offshore renewable energy projects.
Regarding the offshore wind farm project of interest to PNE Group, Mr. Ho Quoc Dung noted that the collaboration has been in motion since 2019 after several visits to Germany to gain insights into PNE, the leaders of Binh Dinh Province are committed to realizing this project.
"I visited Germany and went to PNE's headquarters, where I witnessed their offshore wind farm. From my research, I've recognized PNE as a robust multinational corporation with extensive experience," Mr. Ho Quoc Dung shared.
Leaders from the Provincial Party Committee and the People’s Committee of Binh Dinh Province have reported on the project to the Prime Minister multiple times.
"I, along with the Chairman of the Provincial People's Committee, have met with the Prime Minister three times to present this offshore wind project. During these meetings, the Prime Minister expressed strong support for the initiative," Mr. Ho Quoc Dung stated.
The PNE offshore wind power project in Binh Dinh is set to be Vietnam's first large-scale offshore wind farm. It is hoped that the PNE Group will continue collaborating with the province to actively advance the implementation of this project, which will contribute to the development of both Binh Dinh and Vietnam. Furthermore, the project plays a vital role in promoting renewable energy for Vietnam's green industry and attracting German investors, aiding the Vietnamese government in effectively fulfilling its commitments made at the COP26 Climate Change Summit, emphasized Ho Quoc Dung, Secretary of the Provincial Party Committee of Binh Dinh.
The legal piece
During the meeting, Mr. Pham Anh Tuan, Chairman of Binh Dinh Province, shared insights with the leaders of the PNE Group. He expressed the desire for PNE's leadership to make strong and decisive decisions to complete the project’s procedures and move toward investment in the near future.
Once completed, the project will not only supply green energy for Vietnam but also provide clean energy to German investors and other global companies looking to invest in Binh Dinh.
Mr. Per Hornung Pedersen, Chairman and CEO of PNE Group, emphasized the commitment to work diligently with Binh Dinh Province and the Vietnamese government to bring the offshore wind farm project to fruition.
Initial surveys have shown that the waters of Binh Dinh hold significant potential, meeting PNE's requirements for developing the offshore wind project.
"The first factor for an offshore wind project is wind speed. Our surveys indicate that the coastal area of Binh Dinh has very favorable wind conditions. Additionally, the province's infrastructure has been well-developed and organized," Pedersen stated.
According to Pedersen, after four years of promotion, the project has received strong support from the governments of Vietnam and Germany.
He is optimistic that the project will serve as a pioneering model to harness wind potential in Vietnam's waters and become a benchmark for practical cooperation between Vietnam and Germany. He noted that implementing an offshore wind project is akin to assembling a complex model, where the missing "pieces" require persistent collaboration from both sides to complete, which can sometimes take time.
Currently, the project is facing some investment policy and legal challenges. The relevant ministries and local authorities in Vietnam, along with the investors, are working diligently to assemble this "piece of the puzzle" to finalize the legal framework and move toward project investment.
Providing 7.1 billion kWh of renewable energy annually
The offshore wind power project in Binh Dinh Province, conducted by PNE Group, is designed with a capacity of 2,000 MW and will be developed in three phases, with a total investment of approximately $4.6 billion (over $1.5 billion for each phase).
Once operational, the project is projected to generate around 7.1 billion kWh of renewable energy annually, contributing approximately VND1.6 trillion to the provincial budget each year.
