Vietnam: Ho Tram Strip signs $63mn power MoU

Vietnam: Ho Tram Strip signs $63mn power MoU

The Ho Tram Project Company (HTP) and the PetroVietnam Low Pressure Gas
Distribution JSC (PVGasD) signed an MoU on June 29 that will see Ho Tram
Strip in southern Ba Ria Vung Tau province move to cleaner, greener and more
efficient power within the next 15 months.

The $63 million (net present value) investment will be deployed under the
build-own-operate (BOO) model and see a power station built within the
existing central plant building on the company's 164 ha resort.

Construction is expected to begin later this year and the plant is projected
to fire-up for the first time in late 2018.

"With our signing today, we become the first tourism developer in Vietnam to
fully switch to self-generated, greener energy sources," said HTP's
Executive Chairman Mr. Michael Kelly. "This pioneering move sees us invest
in a natural-gas fueled plant that will emit less than half of the carbon
dioxide and significantly less harmful particulates and carbon monoxide than
coal powered systems."

Climate-scientists estimate that natural gas emits 50 to 60 per cent less
carbon dioxide (CO2) when combusted in a new, efficient natural gas power
plant compared with emissions from a typical new coal plant. They also note
that natural gas from a modern facility that minimizes methane emissions
burn significantly cleaner than other fossil fuels, releasing negligible
dangerous chemicals into the environment.

"Our 15-year agreement will provide cleaner energy for our resorts and
supply all of the requirements for the golf course and villas, and in the
future can be expanded to include the newly-announced Kahuna condotel and
future facilities including the second integrated resort, additional
resorts, and entertainment amenities, including the forthcoming amphitheater
and waterpark," Mr. Kelly said.

"This plant will see a significant decrease in both our reliance upon
Vietnam's grid and our carbon footprint," he went on. "This transition to
our own power station via the state-of-the-art technology that PVGasD is
deploying sees us able to efficiently use the by-product of electricity
generation - heat - to supply hot water for the resorts, and also through
harvesting residual energy it will supply us with cool water for use in the
air conditioning systems."

Switching to its own "Cogen" (co-generated) power system is set to
revolutionize the way in which large integrated companies source their power
in Vietnam. Cogeneration systems, also known as combined heat and power
systems, generate both electricity and usable thermal energy. Instead of
losing heat energy during the power generation process, Cogen systems re-use
the thermal energy for a more efficient and environmentally-friendly power
source.

"We are extremely excited to be partnering with HTP on a development that
will power this project for decades to come with a reliable, scalable, and
environmentally-friendly source of 7 MW of power together with 2,000
refrigeration tons of capacity for air conditioning and refrigeration," said
Mr. Do Pham Hong Minh, PVGasD's Deputy Director. "This is the first project
of its kind to be built at a tourism development such as this, and
represents a pioneering move in the way in which enterprises are adopting
greener sources of power."

The Ho Tram Strip is the first resort complex in the country to cooperate
with a Vietnamese company on such a power station and is leading its peers
in technology.

The $63 million investment came hot on the heels of HTP's Kahuna condotel
preview, itself a $60 million commitment to Vietnam. HTP's parent company
ACDL, has current and forward-deployed over $1.1 billion in Vietnam to date.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://vneconomictimes.com/article/business/ho-tram-strip-signs-63mn-power-m
ou

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com