Apr 10, 2023 13:05 JST

Source: Mitsubishi Corporation

Mitsubishi Corporation Signs Loan Agreement for Monsoon Cross-border Wind Project in Laos
Construction Set to Commence on Climate-action Project Serving Vietnam and Other Parts of Southeast Asia

TOKYO, Apr 10, 2023 - (JCN Newswire) - Mitsubishi Corporation (MC) is pleased to announce that MC and other project sponsors signed a 692 million USD financing package for the Monsoon cross-border wind power project in Laos with the Asian Development Bank, Japan International Cooperation Agency, Sumitomo Mitsui Banking Corporation, and other lenders. As MC announced in its press release in June 2021, MC is involved in the project via investment through its wholly owned subsidiary Diamond Generating Asia, Limited*. Once the wind farm has been constructed, it will sell electricity to Vietnam's state-owned electric power company (Vietnam Electricity) under a 25-year power purchase agreement.

Project Site

Investment Structure

The Monsoon Wind Power Project is situated in southern Laos, and when completed will boast the largest installed capacity of any wind farm in Southeast Asia. In addition to being the first cross-border renewable energy project in the ASEAN region, it will play a central role in the plan shared by the governments of Vietnam and Laos to transmit 5,000 megawatts of electricity from Laos to Vietnam by 2030.

1. Significance for Vietnam
Vietnam is working to balance its climate actions with measures to ease energy constraints. Having set a target to curb the country's carbon emissions by 27% by 2030, the Vietnamese government has made increasing the use of wind and other renewables part of its 8th national power development plan, which is under preparation. The Monsoon project is considered a key contributor to that plan.

2. Significance for Laos
By partnering on this project, the government of Laos will secure more foreign capital that will aid the country's economic growth and development. Furthermore, in strengthening cross-border power-transmission infrastructure, the Monsoon project should help to raise the average standard of living in Laos.

At MC, our mission is to simultaneously create economic, societal and environmental value, thereby meeting the needs of communities around the world and growing with them in a sustainable fashion. Our latest management plan, "Midterm Corporate Strategy 2024 - Creating MC Shared Value," outlines our intention to promote both digital and energy transformations that can leverage renewables to build new, carbon-neutral industries.

By participating in this project, MC is demonstrating a commitment to climate action, energy stability in Vietnam, and economic development in Laos.

The Monsoon Cross-border Wind Project
(1) Location: Sekong and Attapeu provinces (central southern Laos)
(2) Installed Capacity: 600 megawatts
(3) Power Purchaser: Vietnam Electricity (25-year power purchase agreement)
(4) Schedule: Construction slated for commencement in 2023, with operations to commence in 2025.

*Mitsubishi Corporation Participates in Laos Wind Farm Project (mitsubishicorp.com)

Inquiry Recipient:
Mitsubishi Corporation

Source: Mitsubishi Corporation
Sectors: Alternative Energy

Copyright ©2023 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Related Press Release

Yatsushiro City, Kyushu Electric Power Co., Inc., NTT Anode Energy Co., Ltd., and Mitsubishi Corporation Conclude a Partnership Agreement to Expedite Carbon Neutrality in Yatsushiro City
September 01 2023 10:18 JST
Mitsubishi Corporation: Participation of Sempra Infrastructure to the Detailed Study regarding the Introduction of e-methane to Japan Utilizing Cameron LNG Terminal
August 30 2023 20:58 JST
Building a sustainable PET bottle supply chain
August 07 2023 15:59 JST
Agreement Signed to Promote Urban Development towards Carbon Neutral City of Chitose
August 07 2023 13:37 JST
JOGMEC selected a feasibility study on the establishment of an overseas CCS value chain in the "Survey on the Implementation of Advanced CCS Projects"
August 03 2023 12:31 JST
Mitsubishi Corporation: Renewables-driven Next-generation Electric Vehicle Taxi Business Launched in Fukuoka Prefecture
July 31 2023 17:46 JST
Launch of Grid-Scale Battery Operations to Effectively Utilize Solar Power in Fukuoka
July 19 2023 14:43 JST
Mitsubishi Corporation: Rice-paddy Methane Reduction Project Receives J-Credit Scheme Approval
June 28 2023 16:33 JST
Mitsubishi Corporation: New Company for Green Hydrogen Business "Eneco Diamond Hydrogen" Established in Europe
June 22 2023 18:08 JST
Mitsubishi Corporation Announces New Participation in the Marimaca Copper Project in Chile
June 22 2023 09:39 JST
More Press release >>

Latest Press Release

More Latest Release >>