Vietnam’s Vingroup moves away from fossil fuels toward renewables

Vietnamese conglomerate Vingroup (VIC.HM) has announced plans to abandon its project to build the country’s largest liquefied natural gas (LNG) power plant, opting instead to pursue a major renewable energy initiative.

According to Reuters, the proposal was submitted to the Vietnamese government just two weeks after American energy company GE Vernova revealed plans to supply turbines and generators for the 4.8-gigawatt LNG facility. Both Vingroup and the Ministry of Industry in Vietnam declined to provide comments on the change.

Vingroup has suggested that the ministry evaluate a hybrid renewable energy project featuring a battery energy storage system (BESS). This system would store electricity generated from renewable sources and release it during periods of peak demand. The total investment for the project is estimated at approximately $25 billion.

The shift reflects Vingroup’s strategy to reduce Vietnam’s dependence on costly LNG imports while promoting the development of renewable energy infrastructure, aligning the country’s energy sector with global sustainability trends.

By Tamilla Hasanova