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JERA Co., Inc., through its subsidiary JERA Asia Pte. Ltd., has signed a share purchase agreement with International Finance Corporation (IFC) and Armstrong S.E. Asia Clean Energy Fund Pte. Ltd to acquire all their equity interests in Gia Lai Electricity Joint Stock Company’s (GEC)’s outstanding shares such that, after the completion of the acquisition, JERA will indirectly hold approximately 35.1% of the Shares. The acquisition is expected to be completed after the necessary regulatory approvals.
GEC, an affiliate of the TTC Group, is a leading renewable energy power company in Vietnam, listed on the Ho Chi Minh City Stock Exchange. The company owns and operates mainly hydro, solar, and wind power projects with a capacity of approximately 600MW (including projects under construction).
Vietnam has abundant renewable energy sources and has experienced significant growth in renewable power generation in recent years. The Vietnamese Government is expected to continue this growth by setting ambitious targets for renewable energy in the next national Power Development Plan. In order to support the country’s growing electricity demand and decarbonization, GEC aims to become a leader in the renewable energy sector in the country by expanding its power generation assets to 1.7 GW by 2025, comprising mainly solar and wind power.
JERA Asia CEO Toshiro Kudama said “Since our investment in Phu My 2.2 in 2005, we have viewed Vietnam as an important market in ASEAN and have sought opportunities to strengthen ties between our two countries. As one of Japan’s leading energy companies, our objectives are to contribute to both economic growth and decarbonization across Asia, and this investment represents another milestone in this effort. As a shareholder in GEC, we will support GEC’s expansion of renewables in Vietnam.”
JERA recently established a new corporate vision for 2035, “to scale up its clean energy platform of renewables and low greenhouse gas thermal power, sparking sustainable development in Asia and around the world.”
As Vietnam is facing rising demand for electricity, depleting domestic resources, and the shared challenge of addressing decarbonization, JERA views Vietnam as a priority country where it has strong potential to engage in both LNG and renewable energy projects that will contribute to both decarbonization and to a stable supply of energy that support’s the country’s growth. To this end, JERA also announced earlier this year the start of the full-scale operations of its Vietnam subsidiary, JERA Energy Vietnam Co., Ltd., to serve as its base of operations in the country.
Additionally, JERA is continuing to work on reducing carbon emissions from thermal power generation through the promotion of hydrogen and ammonia co-firing. Given Vietnam’s abundant renewable capacity, these greener fuels are also expected to play a significant role in Vietnam’s decarbonization story.