Vietnam National Industry-Energy Group (Petrovietnam) and Denmark-based Copenhagen Infrastructure Partners (CIP) have entered into an agreement to jointly develop the Nam Trung Bo 1 offshore wind project, with an estimated investment of more than $4bn.

The announcement was made at the Vietnam-Denmark Business Forum in Copenhagen, which took place during the state visit of Vietnam’s General Secretary and President To Lam to Denmark.

The Nam Trung Bo 1 project is expected to have a capacity of 1GW. It is still at an early stage.

Petrovietnam CEO Le Manh Cuong stated that the partnership is now focusing on areas such as feasibility, financing, incentive mechanisms, power purchase agreements, project timelines and risk allocation.

The joint development agreement builds on a memorandum of understanding signed by both parties in March 2024.

Since then, teams from Petrovietnam and CIP have coordinated closely to share expertise and identify opportunities for joint projects.

Petrovietnam said that the collaboration with CIP signals the company’s role in offshore wind power and supports the broader partnership between Vietnam and Denmark.

Vietnam’s current Power Development Plan VIII includes targets of 6GW of offshore wind capacity by 2030, 17.5GW by 2035, and between 113GW and 139GW of total wind power capacity by 2050.

Cuong stated that offshore wind power represents a new source of electricity and also creates possibilities for developing an energy industry and marine economic chain, which can support growth in manufacturing and marine technical services.

CIP is working on the project with its exclusive offshore wind development partner, Copenhagen Offshore Partners.

Both sides have agreed to address key aspects such as investment incentives and supply chain development.

Petrovietnam said that the company is simultaneously pioneering offshore wind power development, seeking to improve the legal framework for renewables and building a domestic supply chain for offshore wind.

The group aims to draw on its experience in offshore engineering, manufacturing, logistics and technical services gained from its work in the oil and gas sector.

The agreement was signed in the presence of General Secretary and President To Lam and King Frederik X of Denmark.