SK Ecoplant, the environment and energy arm of SK Group, signed a memorandum of understanding (MoU) with BCG Energy, a subsidiary of Bamboo Capital Group, on March 22 to jointly develop renewable energy projects in Vietnam.

Under the MoU, SK Ecoplant and BCG Energy will co-develop solar and wind power projects with a total capacity of 700MW in Vietnam, including 300MW of onshore wind, 300MW of rooftop solar, and 100MW of ground-mounted solar.

The project will leverage the strong wind resources in Gia Lai province, located in the Central Highlands. This region boasts ideal conditions for wind turbine installation, making it a prime location for large-scale wind power generation.

At the same time, the two sides aim to capitalise on Vietnam's climate by installing solar panels on the rooftops of residential, commercial, and industrial buildings. They will also construct utility-scale solar farms on designated land to provide a stable and reliable source of renewable energy.

BCG Energy is one of the leading renewable energy companies in Vietnam, currently developing and operating about 600MW of solar power plants with more than 800MW of wind power under development.

Meanwhile, SK Ecoplant plans to obtain carbon credits through these projects. In 2021, the South Korean firm completed the registration of its clean development mechanism (CDM) under the United Nations Framework Convention on Climate Change (UNFCCC) in Vietnam.

Under the CDM scheme, SK Ecoplant will receive carbon rights from the United Nations body proportionate to the performance of its greenhouse gas reduction projects.

The agreement will also explore other high-potential renewable energy projects to satisfy Vietnam's energy demands that are growing at over 10 per cent annually.

According to the Korea Trade-Investment Promotion Agency, Vietnam's renewable energy capacity has more than quadrupled from 5.2GW in 2019 to about 21.6GW last year.