Shikoku Electric buys fifteen percent stake in coal power plant project in Vietnam

[ASEAN NOW News]

Land clearance in Ha Tinh where Vung Ang 2 coal-fired power plant is set to be built. Photo by VnExpress/Duc Hung

 

Japan's Shikoku Electric Power Co Inc said on Friday it had invested more than ten billion yen ($87 million) to buy a 15 percent stake in the Vung Ang 2 coal-fired power plant project in Vietnam reported VN Express.

 

The Japanese utility has paid between ten billion and twenty billion yen to Japanese trading house Mitsubishi Corp to buy the stake, a company spokesperson said.

 

"We understand there are various opinions about the project, but we have decided to join it as the 1.2 gigawatts (GW) project is expected to contribute to the stable supply of electricity and economic development in Vietnam," the Shikoku Electric spokesperson said.

 

The move is part of Shikoku Electric's efforts to expand overseas operations to boost growth. It aims to support the operation of the plant with the knowledge derived from its domestic power business, the company said.

 

After the deal, Mitsubishi holds a 25 percent stake in the project while another Japanese utility, Chugoku Electric Power Co Inc, owns a 20 percent stake.

 

Comment: Surprising development especially after the climate change proposals to cut coal fired energy.

 

Join our 3 x a week Vietnam News, Travel and Expat information newsletter and keep up to date. https://aseannow.com/newsletter.php