Aboitiz Power Corp. (AboitizPower) is venturing overseas for the first time by acquiring a 25 percent stake in Vietnam’s Van Phong Power Company Limited (VPCL) from Japan’s Sumitomo Corp. in a deal worth about $220 million.
In a stock exchange report on Thursday, the company said the investment allows it to stay “on track to deliver sustainable returns to its shareholders, maintaining a well-balanced portfolio of energy technologies.”
Parallel with its RE investment program
“This investment is parallel with our renewable energy (RE) investment program and is aligned with our aspiration to ensure a balanced long-term energy transition, contributing to reliable and affordable energy systems,” the company added.
VPCL owns and operates a 1,320-megawatt high-efficiency, low-emission (HELE) coal-fired power plant in Khánh Hòa Province, Vietnam.
The facility, which began commercial operations in January 2024, runs under a 25-year power purchase agreement with state utility Vietnam Electricity (EVN).
Largest foreign-invested power plant
AboitizPower said the Van Phong 1 plant is designed to supply about 8.5 billion kilowatt-hours of electricity annually, equivalent to around four percent of Vietnam’s total power generation. It is also the largest foreign-invested power plant in the Van Phong Special Economic Zone.
The company said the deal’s completion is subject to regulatory and third-party approvals, with payment to follow once these are secured.
AboitizPower said its board approved the offer for the stake on 27 January 2025 and authorized management to finalize the terms and execute the transaction.
Sumitomo Corp. will remain the majority owner and operator of the HELE plant. One of Japan’s largest and most diversified conglomerates, Sumitomo was established in 1919 with roots dating back to the 17th century.
AboitizPower has over 1,000 MW of renewable projects in the pipeline and aims to add 3,600 MW more to reach a 9,200-MW portfolio by 2030, with at least half from clean energy.