AboitizPower announced today that it will acquire a 25% equity stake in Van Phong Power Company Limited (VPCL) from Sumitomo Corporation. VPCL owns an operational 1,320 MW high-efficiency, low-emission (HELE) coal-fired power plant in Khánh Hòa Province, Vietnam.
This marks a pivotal moment in AboitizPower’s history as it represents the company’s first significant investment outside of the Philippines.
The Van Phong power plant, which commenced commercial operations in January 2024, operates under a 25-year power purchase agreement with Vietnam’s national utility, Vietnam Electricity (EVN). Van Phong 1 Coal-Fired Power Plant is designed to supply about 8.5 billion kWh per year to the national grid, equivalent to around 4% of Vietnam’s annual gross power generation. This is the largest foreign-invested power plant in the Van Phong Special Economic Zone, located in the province of Khanh Hoa.
With this venture, AboitizPower remains on track to deliver sustainable returns to its shareholders, maintaining a well-balanced portfolio of energy technologies. This investment is in parallel with our renewable investment program and is aligned with our aspiration to ensure a balanced long-term energy transition, contributing to reliable and affordable energy systems.
The closing of the transaction is subject to customary closing conditions, including securing the necessary regulatory approvals.
Sumitomo Corporation is one of Japan’s highly diversified conglomerates with a long history, tracing its roots back to the 17th century, though the modern trading company was established in 1919.