AboitizPower goes global, buys 25% in Vietnam coal plant

Aboitiz Power Corp. is taking its first major step beyond the Philippines with the acquisition of a 25-percent stake in a coal-fired facility in Vietnam owned by Japan’s Sumitomo Corp. for $220 million.

- By BRIX LELIS

AboitizPower intends to invest in Van Phong Power Co. Ltd. (VPCL), which owns an operating 1,320-megawatt coal-fired power plant in the province of Khanh Hoda in Vietnam.

VPCL is a wholly owned subsidiary of Sumitomo, one of the leading diversified conglomerates in Japan.

Started commercial operations in January 2024, the Van Phong plant has an existing 25-year power purchase agreement with state-owned energy utility Vietnam Electricity.

According to AboitizPower, the Van Phong 1 plant is projected to deliver about 8.5 billion kilowatt-hours to Vietnam’s national grid annually. This represents about four percent of the country’s annual gross power generation.

“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,” the company said.