Investment in Run-of-River Hydropower Project in Da Nang, Vietnam- Acquisition of 49% stake as first strategic project contributing to the country's energy challenges -

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) has acquired a 49% stake in Mekong Electric Power Engineering and Development Joint Stock Company, which owns the Dak Di 1・2 run-of-river hydropower (*1) project (total generation capacity: 48 MW; hereinafter “the Project”) in Da Nang, Vietnam, from GreenSpark Group (Headquarters: Lao Cai Province, Vietnam; CEO: Cao Thi Thu Hien), a renewable energy developer in Vietnam.

The Project, which commenced operations in 2022, is an existing power generation facility with a 20-year power purchase agreement with Vietnam Electricity (EVN) group. This represents Sumitomo Corporation's first hydropower investment in Vietnam. Through participation in the Project, Sumitomo Corporation aims to contribute to securing renewable energy sources and advancing decarbonization in Vietnam, while promoting initiatives in energy transformation, one of the growth areas identified in its current Medium-Term Management Plan.

As economic growth continues, Vietnam faces challenges in meeting increasing electricity demand and maintaining grid stability while renewable energy deployment expands, all while targeting carbon neutrality by 2050. Against this backdrop, the Vietnamese government is promoting the expansion of hydropower as a baseload power source (*2). The Project contributes to regional energy security and supports Vietnam's decarbonization efforts.

Under Vietnam's energy plans, Sumitomo Corporation intends to use this investment as a starting point to secure stable renewable energy sources, pursue further acquisitions and development of high-quality hydropower projects in the country. Additionally, by leveraging the emerging Direct PPA (DPPA / *3) system in Vietnam, Sumitomo Corporation is considering the potential to supply sustainable power to its industrial parks and smart cities, further contributing to a carbon-neutral society.

*1 A method that uses river water directly for power generation.
*2 Power sources capable of stable generation regardless of season, weather or time of day.
*3 A private-sector electricity trading system implemented in 2024. Currently applicable only to solar and onshore wind, but expected to expand to include hydropower and other renewable sources.

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