Copenhagen Infrastructure Partners (CIP), through its $3 billion Growth Market Fund II, has signed a joint development agreement with state-owned PetroVietnam to build one of Vietnam’s first offshore wind projects.
The project will be developed alongside Copenhagen Offshore Partners, CIP’s exclusive offshore wind development arm.
The value of the project was not disclosed.
The project is expected to bolster Vietnam’s energy security and lay the foundation for a robust local supply chain, as it will deliver “one of Vietnam’s first offshore wind projects and establish the groundwork for future offshore wind projects in Vietnam,” Robert Helms, Partner at CIP, said in a statement.
Niels Holst, Partner at CIP, will be speaking at DealStreetAsia’s Asia PE-VC Summit in a panel titled Asia’s Infrastructure Revolution: The multi-trillion-dollar opportunity?
PetroVietnam will contribute technical expertise, workforce capacity and existing onshore and offshore infrastructure, while CIP brings global experience in offshore wind development, technology and capital raising, The Vietnamese company said in a separate announcement.
The agreement comes as Vietnam steps up its renewable push. Offshore wind is seen as a key pillar in the country’s strategy to achieve net-zero emissions by 2050.
Last year, Vietnam passed a new energy law that sets regulations for renewable and new energy development, electricity licensing and a more competitive power market. Niels Holst, Partner at CIP, told DealStreetAsia earlier that this regulatory push will enable the firm to deploy capital in the country.
CIP’s growth market funds invest in large-scale and complex greenfield energy infrastructure projects in high-growth, middle-income markets with strong fundamentals for renewable development and significant impact potential across Asia, Latin America and EMEA.
The second fund in the series was launched in December 2023 with a $3 billion target size. It is targeting 15 selected markets such as India, Vietnam, the Philippines, Mexico, and South Africa, with a diversified portfolio representing more than $5 billion in potential commitments, according to CIP website.
The first growth market fund closed at $1 billion in November 2019.
CIP recently closed its fifth flagship fund above its 12 billion euro ($13 billion) target.
