Sumitomo Corporation (President and CEO: Susumu Kato; Head office: Chuo-ku, Tokyo; hereinafter, "Sumitomo") will embark on an electric power generation project in the Van Phong Economic Zone of Khanh Hoa Province located in south central Vietnam. Vietnam's largest supercritical coal-fired power plant will be constructed and operated under the project, which is expected to cost a total of 200 billion yen.

 

Under this BOT (build, operate, transfer) power project, a supercritical coal-fired power plant with a generation capacity of 1,320 megawatts (two 660-megawatt boiler turbine generator units) will be built to supply electricity to "Electricity of Vietnam" (EVN) over a period of 25 years, using coal imported from Australia and other countries as fuel. Sumitomo aims to complete plant construction and start commercial operations in 2015. In January 2009, Vietnamese Ministry of Industry and Trade officially named Sumitomo and a local construction company, and Sumitomo has recently concluded a Memorandum of Understanding (MOU) with the Ministry on BOT project development. Going forward, Sumitomo, together with the Vietnamese government ministries concerned, will conclude formal project contracts, including BOT contract, in line with the MOU. In addition, Sumitomo will also consider arranging project finance from the Japan Bank for International Cooperation (JBIC) and other banks, while selecting contractors for plant construction.

 

Sumitomo is proactively pushing ahead with investment in and development of electricity and water projects worldwide. Large-scale electric power generation projects in which Sumitomo has been involved in the ASEAN region include: the 792-megawatt CBK hydroelectric power plant in the Philippines; the 715-megawatt Phu My 2-2 combined cycle thermal power plant in southern Vietnam (operations launched in 2004); and the 1,320-megawatt Tanjung Jati B coal-fired thermal power plant in Indonesia (operations launched in 2006) as well as its expansion plant, currently under construction, for which the leasing contract was signed in November 2008. The project in Vietnam will be the fifth of its kind.

 

Sumitomo is determined to continue its contributions in the development of regional communities through its fossil fuel-based electric power generation projects, which are highly efficient and have adopted cutting-edge technologies that limit CO2 emissions; promotion of electric power generation projects using sustainable and environmentally-friendly energy sources such as sunlight, wind, and geothermal heat; and development of social infrastructure such as industrial parks and transportation infrastructure.

 

Related Link

• Infrastructure business unit

Related Release

• Sumitomo Corporation and Hitachi, Ltd. jointly win contract to supply steam turbine generators for the first super-critical thermal power plant in Egypt
• Sumitomo Corporation to Expand Tanjung Jati B Coal Fired Power Plant (Indonesia)