Modern Energy Management wins bid for Vietnamese wind farm
One of the first commercial-scale wind farms to be introduced to Vietnam is underway, with Thailand-based project management firm to oversee the initial phase of production.
Modern Energy Management (MEM) signed to oversee the first development phase of the farm, costing $130mn.
The Tra Vinh project will have a capacity of 144MW, with the initial stage seeing 48MW potential, and will be developed by South Korea’s Woojin Construction, special purpose company Tra Vih Wind Power, and Dutch development funding provider Climate Fund Managers.
Vietnam, along with 47 other countries subject to climate change, has agreed to use only renewable energy by 2050 at the latest.
Investment in renewables has been limited, however, due to a low FiT rate, lack of transmission infrastructure, and the perception of the nation’s power purchase agreement (PPA) being “unbankable” by international investors.
The integration of insurance, legal, and project management aspects of the development should prevent any of these issues, say MEM, bridging “the various financial, commercial and technical siloes that can arise in the course of developing wind assets”.
MEM also plans to issue a dedicated project manager, who will ensure “the project matures as planned enabling bankability”.
The Director of MEM, Lars Lund, reported that he considers the Vietnamese market to possess “considerable investment potential for projects that focus on the fundamentals as a means of reducing costs and ensuring sufficient returns for investors”.
At current, Vietnam has 200MW of wind power generation capacity, with 50 projects in planning.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.