Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries Sembcorp Ind has signed a collaboration agreement with BCG Energy, a wholly-owned subsidiary of Vietnam’s Bamboo Capital Group, to develop renewable energy projects in Vietnam.

Under the collaboration, the companies will “leverage each other’s strengths and resources” to jointly develop up to 1.5 gigawatts (GW) of wind and solar projects in Vietnam, Sembcorp said in a bourse filing.

The first phase will involve an initial funding of US$30 million to develop a 550 megawatt portfolio of utility-scale nearshore and onshore wind assets in the Ca Mau, Tra Vinh and Soc Trang provinces. BCG Energy has secured the projects, which are expected to come online by the end of 2022.

The company said it is looking to scale up its renewables portfolio in the country, after it had invested in Vietnam for more than 20 years through its integrated energy and urban management expertise.