Trading house Sumitomo to build coal-fired power plant in Vietnam in 2023
HO CHI MINH CITY, NNA - Japanese trading house Sumitomo Corp. has launched the construction of a coal-fired power plant in Vietnam where serious shortages of electricity are feared due to its rapid economic growth.
The project is being undertaken by Sumitomo Corp.’s wholly owned subsidiary in Vietnam, Van Phong Power Co., at a total cost of about 280 billion yen ($2.6 billion) in the Van Phong Special Economic Zone in the south central province of Khanh Hoa, the major trading company said in a statement on Monday when construction began.
The Van Phong 1 power plant is due to start commercial operation by the end of 2023, selling electricity to the state-owned power company, Vietnam Electricity, over a period of 25 years, the statement said.
Vietnam’s Ministry of Planning and Investment approved the subsidiary’s plan to invest in the build-operate-transfer (BOT) project in November 2017.
The supercritical coal-fired power plant will have an output capacity of 1,320 megawatts through two power-generating units each with a 660,000-kilowatt capacity, the statement said.
As demand for electricity is forecast to grow by about 10 percent every year in the country, the Vietnamese government worked out a plan in 2016 to boost its power generation capacity to 96.5 million kW by 2025 and to 129.5 million kW by 2030.
As part of its new policies to help resolve problems arising from climate change, Sumitomo Corp. will engage in coal-fired power generation business only if such a project is “essential to the economic and industrial development of the local community” and is in agreement with policies of the Japanese and host governments regarding climate change, the statement said.