A leading Danish wind turbine manufacturer and a Vietnamese company signed Tuesday a memorandum of understanding on implementing a wind farm project in the southern province of Soc Trang.

The signing between Vestas and Phu Cuong Co. took place during the “Wind Energy in Vietnam” seminar held in Ho Chi Minh City by the Embassy of Denmark in Vietnam, according to newswire Vietnam News Agency.

Work will begin on the first 170MW wind farm in Vinh Chau Commune in early 2016 at a cost of US$436 million.

The first phase of the farm will see construction of a $75 million 30MW wind energy plant.

Vestas is committed to supporting Phu Cuong in loan borrowing, infrastructure construction, and equipment.

The project will be located along the Soc Trang coast.

“The area has potential for wind energy and it does not affect local life ashore,” Phu Cuong chairman Nguyen Viet Cuong said.

The wind energy project is expected to supply 485GWh of clean electricity to the southern area, mostly the Mekong Delta. The price it is expected to charge Vietnam Electricity, the country’s power monopoly, is 9.8 cent per kWh.

Vestas has previously installed a 6MW turbine on Phu Quy Island off the south-central province of Binh Thuan under a pilot project, according to the Vietnam News Agency.

At the seminar, Denmark's Export Credit Agency (EKF), the Investment Fund for Developing Countries (IFU), and Vestas also introduced possible financial and technological aid to develop wind energy in Vietnam for local investors.

They also shared experience in investing and managing wind farms in Denmark.

Bo Monsted, head of the commercial section with the Danish Embassy in Hanoi, said wind energy accounts for more than 33 percent of power consumption in Denmark, the largest share in the world.

The embassy’s introduction of Vestas to Vietnam is intended to help the Southeast Asian country develop wind energy for “a greener future,” he said.

Founded in 1945, Vestas initially manufactured household appliances before moving to exclusively produce wind turbines from 1989.

The firm has installed over 48,000 wind turbines for a capacity of 55GW in over 70 countries on five continents, according to a company report.

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