SP and Hoa Sen launch Vietnam’s first Cooling-as-a-Service venture

On July 18, Singapore’s SP Group announced a partnership with Hoa Sen Group to roll out Vietnam’s first industrial Cooling-as-a-Service (CaaS) system. The service will be deployed at Hoa Sen’s two largest steel sheet factories in Phu My and Nghe An, and will operate alongside rooftop solar. This marks SP Group’s first industrial cooling venture in Vietnam and builds on its regional push for low-carbon energy solutions.

CaaS is an innovative, scalable and cost-effective cooling solution from SP. It offers a zero-capex model in which SP designs, builds, owns, and operates high-efficiency cooling systems with full lifecycle maintenance for buildings. This allows customers to pay only for cooling energy consumed and helps businesses avoid upfront infrastructure and equipment costs while benefiting from energy savings, operational reliability, and reduced emissions.

Under the partnership, SP will deploy CaaS systems that have a combined capacity of up to 1,900 refrigeration tonnes, which will deliver high-efficiency cooling for critical manufacturing environments including the electrical and variable speed drives rooms. Rooftop solar photovoltaic (PV) systems that have a combined capacity of 17.6 megawatt-peak (MWp) will generate more than 21,000 MWh of clean energy annually.

The CaaS solutions will be operational by the second quarter of 2026, while commercial operations for the PV systems began in March (Phu My) and June (Nghe An). Together, the two solutions are expected to reduce cooling-related electricity consumption by over 30 per cent per annum. The solutions also avoid more than 14,000 tonnes of CO₂ emissions annually – equivalent to removing 3,300 cars from the road or powering 3,900 Vietnamese homes. The initiatives enable over 214,000 tonnes of emissions reduction over the project lifecycle (15-year CaaS and 25-year solar PV agreements)

Brandon Chia, managing director for Sustainable Energy Solutions (Southeast Asia), SP Group, said, "This marks SP’s first CaaS deployment in Vietnam and a significant step in accelerating the adoption of sustainable cooling solutions for the industry. By offering integrated, innovative and cost-effective cooling and solar deployment models, we help customers like Hoa Sen decarbonise while maintaining operational performance. We look forward to scaling this model across Vietnam’s industrial sector."

Nguyen Minh Phuc, deputy general director of Hoa Sen Group, said, "Integrating sustainable cooling and renewable energy solutions into our operations improves efficiency and supports our sustainability goals. This partnership with SP Group aligns with our strategy to enhance energy performance across our manufacturing facilities."

SP Group has been expanding its portfolio of sustainable energy solutions in Vietnam since 2021, with close to 400 MWp of solar projects serving more than 50 commercial and industrial customers.

Vietnam’s major cities are changing at blinding speed. Over the past 20 years, cities like Ho Chi Minh and Hanoi have seen residential areas expand, malls open, skyscrapers rise, and populations grow, among many other changes that project the country’s rapid economic growth.

SP Group, a sustainable energy solutions provider in Asia Pacific, has acquired 100 megawatts-peak (MWp) of solar power assets in Vietnam, showing a long-term commitment to the country.

Singapore's SP Group and Hoa Sen Group signed a strategic partnership for the sustainable development of clean energy at Hoa Sen's steel mills on June 27.