PHI Group acquires 51% stake in Vietnamese renewable energy company

PHI Group has acquired 51% equity interest in Vietnam-Hungary Technological Application Joint Stock Company (VHC), a renewable energy company based in Vietnam for an undisclosed sum.

VHC uses a combination of solar energy and wind power technologies developed in Hungary to generate electricity.

Phu Quoc Island Investment and Development Authority have awarded a licence to VHC to build power generating facilities in Hon Thom Island, Phu Quoc District, Kien Giang Province, Vietnam.

The facilities to be built in an area of 8.7ha will employ both solar energy clusters and wind power modules, to initially provide an output of 1,270 Kwp of electricity to residents of Phu Quoc Island.

VHC expects to begin generating revenues from the sale of electricity directly to customers, currently estimated at 21.4 cents per Kwh, within sixty days.

VHC will increase capacity to 50 Mwp to meet the growing demand for electricity in the region, following completion of the first phase.

The company will also credit for six tonnes of CO2 per day at the price of $18 per tonne as stipulated by the Vietnamese government.

The company also intends to expand its operations to Indonesia and the Philippines where large number of islands are not connected to the national electricity grids.

PHI Group holds majority interests in subsidiaries engaged in real estate development and M&A consulting services.