Developers pinpoint energy dealmaking

In late October, UAE-based NMDC Group signed an MoU with Vingroup on cooperation to develop offshore wind projects in Vietnam.

Under the terms of the MoU, both sides will explore collaboration across a number of areas, in particular, large-scale projects focused on environmental sustainability. These will include reclamation projects for coastal land and for urban expansion, sustainable coastal protection for high-end real estate, and industrial land reclamation.

NMDC Group will employ its advanced marine engineering solutions to ensure a positive and sustainable environmental impact and long-term coastal resilience.

Yasser Zaghloul, group CEO of NMDC, said, “Our partnership with Vingroup aligns perfectly with NMDC’s strategy to deliver sustainable marine infrastructure that supports both economic development and environmental protection. We are excited to bring our technical expertise to Vietnam’s coastline, creating long-term value for both communities and investors.”

Elsewhere, PNE Group, a wind energy development company from Germany, held the grand opening of its new office in Quy Nhon city of the south-central province of Binh Dinh in late October.

PNE Group is set to enhance Vietnam’s renewable energy landscape with the Hon Trau offshore wind project, targeting a capacity of 2,000MW, divided into three phases. The investment is about $4.6 billion, and the company is also seeking partners in Vietnam to deploy the project.

Seck Yee Chung, partner at Baker McKenzie Vietnam, said, “Vietnam’s continued commitment to sustainable development and environmental, social, and governance (ESG) values present valuable opportunities for foreign financiers to invest in solar, wind, and other types of renewable energy projects.”

For example, SUSI Partners, on behalf of the SUSI Asia Energy Transition Fund, signed an agreement in September to acquire the 39MW Dam Nai wind farm from Norwegian renewable energy company Scatec for $27 million with a potential additional $13 million depending on certain conditions.

In July, Singapore’s Levanta Renewables announced that it is acquiring a 28.7MWp rooftop solar system from Tien Nga JSC and its affiliates, a major logistics provider in Vietnam.

In the same vein, Anh Nguyen, manager of Market Research and Consulting at FiinGroup Vietnam, said ESG-related sectors such as renewable energy are expected to remain a cornerstone of M&A activity in the coming year, fuelled by the government’s commitment to sustainable development and carbon reduction targets.

“International players are expected to become increasingly active in Vietnam’s renewable energy sector, either by acquiring stakes in local projects or forming joint ventures,” Nguyen said. “Notably, EDP Renewables, the development arm of the Spanish energy giant EDP, is ambitious in investing $1 billion in Vietnam’s renewable energy market.”

Additionally, Sembcorp Solar Vietnam, a subsidiary of Sembcorp Group, plans to expand its renewable energy portfolio by acquiring significant stakes in wind and solar assets in the time to come, Nguyen added.

According to a 2024 trends survey by Deloitte, ESG appears to be more deeply embedded in the merger and acquisition process than ever before, with a greater recognition among leaders that it is a lever for measuring, protecting, and creating value. One reason for this trend is that ESG data is now better defined, captured, and measured, thus, allowing metrics to be more precise and better understood than they were only a few years ago, it said.

Presight, the UAE's leading big data analytics company powered by generative AI, has signed am MoU with Viettel AI to promote cooperation and advance the development of applied AI and digital transformation initiatives.