Coro Energy, an UK-based and Southeast Asia-focused energy company, announced on Monday that it has inked a 25-year power purchase agreement (PPA) with Phong Phu, a Vietnamese textiles producer.
Under the deal, Phong Phu will acquire 3 MW of solar power from Coro’s 5-MW rooftop solar plant.
In November, Coro reached a binding agreement with Vietnam’s Vinh Phuc Energy JSC to form a joint venture in Vietnam named Coro Renewables Vietnam, with Coro Energy taking over 85% of the stakes and Vinh Phuc Energy the remaining 15%. The two companies co-own a portfolio of 150-MW rooftop solar project in Vietnam.
The 150-MW photovoltaic project package includes a 5-MW rooftop solar plant which is scheduled to be ready for construction in 2022. Once commissioned, the facility will provide Phong Phu with 3 MW of solar power per year.
Phong Phu will receive electricity at a rate of US¢ 0.073 per kWh, with an annual escalator of 1%.
The PPA is expected to generate revenue between US$9 million and US$11 million over the 25-year contract duration, according to Coro Energy.
In addition to the Southeast Asian market, Coro Energy also has interests in seven gas concessions in Italy. The company originally planned to divest its Italian natural gas field, but changed its mind after the outbreak of the Russia-Ukraine war, which pushed up prices of natural gas in Europe. The company announced in March that it has resumed gas production at the Sillaro gas field in Italy.
Mark Hood, chief executive officer at Coro Energy remarked, “I am delighted that we have now signed our maiden supply contract in Vietnam which, on the back of the re-birth of our Italian portfolio, re-enforces our energy transition strategy with both gas and renewables taking center stage. We can now look forward to revenues from both transition fuels.”