Kumagai Gumi enters into a strategic business alliance with Truong Thanh Vietnam Group and emerges as a player in the renewable energy business in Vietnam


Kumagai Gumi Co., Ltd. (President Yasunori Sakurano, Head Office, Shinjuku-ku, Tokyo, "Kumagai Gumi") successfully acquired 30% shares of Binh Dinh TTP Energy & High Technology ("BDE") which owns and operates the Cat Hiep Solar Farm in Vietnam (Location: Phu Cat District, Binh Dinh Province; Power generation capacity: 49.5MWp). The Cat Hiep solar project was jointly developed and operated by French group Qair (“QAIR”), an independent producer of exclusively renewable energy, and Truong Thanh Vietnam Group JSC, one of the top 3 leading enterprises in clean energy in Vietnam ("TTVN").

More importantly, we have entered into a strategic business alliance agreement with TTVN to jointly develop and operate renewable energy projects in Vietnam. This initiative represents our commitment towards renewable energy business as one of the core objectives in our medium-term management plan. In addition, this participation in the business in Vietnam would lay a solid foundation for our expansion in renewable energy markets overseas. By participating in Cat Hiep solar power project and actively searching for new developments of solar, wind, and other renewable energy sources in Vietnam – a rapidly growing energy market, we will be able to secure stable earnings opportunities, promote ESG-based management and contribute to the realization of a carbon-free society.

Outline of Cat Hiep Solar Power project

  Located in Binh Dinh Province, in the central region of Vietnam, the Cat Hiep solar power project was developed jointly by QAIR and TTVN and started commercial operations in June 2019. With a capacity of 49.5MWp, the project built on a 62ha site exceeds its estimate to generate about 74 Million kWh per annum, supplying power to about 37,000 households. Notably, the project has entered into a Power Purchasing Agreement with Vietnam Electricity Company based on the FIT pricing scheme in Vietnam, in which the electricity unit price is fixed at 9.35 US cents/kWh for the contract period of 20 years.
  The project is engineered, procured, and constructed by Juwi as the EPC contractor, a renowned global renewable energy contractor based in Germany. This project has been awarded the “Fast-Track Power Plant of the Year” in the region’s most prestigious Asian Power Awards 2019.

[Location of Cat Hiep solar plant full picture of facilities]

About QAIR

Qair is an independent producer of exclusively renewable energy, developing, constructing, and operating wind, solar and hydroelectric projects on own account for more than 30 years.
Operating in Vietnam since 2018, QAIR’s installed capacity amounts to 500 MW worldwide.
Active in 15 countries across Europe, Latin America, Africa, and Asia, QAIR’s ambition is to become an independent leader in responsible energy.

About TTVN

 TTVN operates in renewable energy and real estate businesses in Vietnam. Established in 2012, it has actively engaged in the development of ground-mounted solar, rooftop solar, wind power and LNG projects. The Company has so far developed successfully about 357MWp of solar farm projects and is constructing a 48MW offshore wind project aiming to finish by 2021. The company is also having a pipeline of approximately 700 MWp in solar farms, 2,500 MW in offshore wind farms and 4,500 MW in LNG. With all these efforts and achievements, TTVN has been awarded to be one of
the top three leading clean energy enterprises in Vietnam for two consecutive years.
 The strategic business alliance between Kumagai Gumi and TTVN is intended to jointly develop and commercialize some of the solar and wind power projects that TTVN is developing and planning in Vietnam, as well as potential new projects in the future.