Sep. 01, 2022

Efforts underway to develop new offshore wind power projects in France and Vietnam

Sumitomo Corporation will be working to develop new offshore wind power projects in France and Vietnam, seeking to contribute to the realization of a sustainable society by expanding our overseas renewable energy portfolio.

Initiatives for climate change mitigation

As part of our efforts to mitigate climate change, we have set a long-term goal of making the Sumitomo Corporation Group's business activities carbon neutral by 2050, and a mid-term goal of increasing supply of renewable energy to 3GW or more by 2030. Offshore wind, which offers one of the largest power generation capacities from renewable energy sources, is being increasingly introduced, especially in Europe. Sumitomo Corporation has already been participating in multiple projects and developments in Europe, and we will continue to work to develop new offshore wind projects by taking on the challenge to new technologies such as floating offshore wind power generation and expanding our activities to Southeast Asia and other regions.

Pre-qualification for floating offshore wind farms in France

Sumitomo Corporation has formed a consortium with BlueFloat Energy (Spain) and Akuo (France) for the construction and operation of floating offshore wind farms in the Mediterranean Sea (250 MW x two offshore areas) sponsored by the French government, and this consortium has passed the pre-qualification screening. This is the first floating offshore wind power project for Sumitomo Corporation that has passed the pre-qualification screening, and we will be leveraging this opportunity to actively consider floating offshore wind power projects in other markets as well.

The EU had set a goal to increase the share of renewable energy in the region's energy consumption to at least 32% by 2030, and in June 2022 its members agreed to increase this to 40%. France has also set a long-term goal to achieve carbon neutrality by 2050 and plans to install 40GW of offshore wind capacity by the same year.

In 2018, Sumitomo Corporation participated in the development of two fixed offshore wind power projects in France – "Le Tréport" and "Noirmoutier" (total power generation capacity: 992 MW) – which are currently aiming for commencement of construction in 2024. Through these projects, we will continue to expand our business in France and contribute to the country's efforts to achieve carbon neutrality.

Sumitomo Corporation’s overseas offshore wind power projects

Offshore wind power generation in Vietnam

In addition to Europe, where the development of offshore wind power generation has been rapidly advancing, Sumitomo Corporation has been working to develop new projects in Asia, where the introduction of offshore wind power is expected to increase in the future. We have recently commenced initial development of an offshore wind power generation project at an offshore site in southern Vietnam utilizing the country's favorable wind resources. This project has been selected by the Ministry of Economy, Trade and Industry (METI) for the "Financing Program for Asia Green Growth Project" (*).

During "ASEAN-Japan Business Week" held in May 2021, the Japanese government announced the "Asia Energy Transition Initiative (AETI)" to support the simultaneous achievement of sustainable economic growth and carbon neutrality in Asia. The "Financing Program for Asia Green Growth Project" is one of the specific measures to support the initiative announced by the Japanese government. Coordinating with the momentum of the Japanese government, Sumitomo Corporation will be working to develop offshore wind projects in Vietnam with the aim of starting operation by 2030 and thereby contributing to the development of renewable energy power generation in the country.

At the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) held in the UK on November 1, 2021, the Vietnamese Prime Minister, Mr. Pham Minh Chinh, announced Vietnam's goal of achieving net zero carbon emissions by 2050. The draft of the Power Development Plan 8 (PDP 8) prepared by Vietnam's Ministry of Industry and Trade is targeting to double Vietnam's generation capacity of green power such as wind and solar power by 2030, as part of its countermeasures to climate change.

Sumitomo Corporation has also been involved in the construction and operation of thermal power projects in Vietnam, providing a stable supply of energy which is essential for economic and industrial growth. Going forward, we will also focus on expanding our renewable energy business to support energy transition in Vietnam. In addition to offshore wind power, we have launched solar power projects in February 2021 at the Thang Long Industrial Park. By expanding the supply of green power aiming for the goal of green power supply to the entire industrial park, Sumitomo Corporation will contribute to the further spread of renewable energy projects across the country.

Rooftop solar power generation project at Thang Long Industrial Park II
  • Financing Program for Asia Green Growth Project:
    A METI program that supports projects contributing to carbon neutrality in Asian countries in line with the Asia Energy Transition Initiative (AETI).

Reference information

■Overview of BlueFloat Energy (as of August 2022)

Location of headquarters : Madrid, Spain
Description of business : A renewable energy company, founded by experts in the development, financing, construction and execution of offshore wind projects, which has developed 18 floating offshore wind projects worldwide (total power generation capacity: 14GW, 22.4 GW in pipeline)
Company established : October 2020
Number of employees : Over 50

■Overview of Akuo (as of August 2022)

Location of headquarters : Paris, France
Description of business : An independent global renewable energy company that operates across the entire value chain, from development to operation, with a presence in more than 15 countries around the world (total power generation capacity: 7 GW)
Company established : 2007
Number of employees : Over 450