The company, led by its CEO Danel Aboitiz, is acquiring a 25-percent stake in Van Phong Power Company Ltd. from Japan’s Sumitomo Corp.
The new investment gives AboitizPower entry into the 1,320-MW Van Phong 1 high-efficiency, low-emission power plant in Khanh Hoa province, which supplies around 8.5 billion kWh annually, or 4 percent of Vietnam’s total electricity output, under a 25-year power supply deal with state utility Vietnam Electricity.
Overseas bet to deliver “sustainable returns”
“With this venture, AboitizPower remains on track to deliver sustainable returns to its shareholders, maintaining a well-balanced portfolio of energy technologies,” the power giant said in a stock exchange filing on Thursday.
“This investment is in parallel with our renewable investment program and is aligned with our aspiration to ensure a balanced long-term energy transition, contributing to reliable and affordable energy systems,” It added.
The move comes after AboitizPower called off a $46-million deal in 2020 to acquire Vietnam’s Mekong Wind Pte. Ltd., citing unmet conditions.
That plan, first announced in 2019, would have been its debut in the overseas renewable market.
—Edited by Miguel R. Camus
