The La Gan offshore wind power project awards geological contracts

On 20 May, the La Gan Wind Power Development Corporation, developer of the 3.5 GW La Gan Offshore Wind Power Project owned by Copenhagen Infrastructure Partners, Asiapetro and Novasia, signed two contracts with  the Northern Center for Planning and Investigation of Marine Resources and Environment (CPIM), a Vietnamese government agency.

The two contracts: the La Gan Geophysical Survey Campaign Contract and the La Gan Geological Study Contract, will cover major geological surveys and studies and are worth several million US dollars.

Geophysical surveys and studies are crucial steps for offshore wind power projects to understand the seabed condition and progress the development of ground models and foundation designs. CPIM will engage a Danish sub-contractor: the Geological Survey of Denmark and Greenland (GEUS), which is under the Danish Ministry of Climate, Energy and Utilities, to carry out the scope.

Under the La Gan Geophysical Survey Campaign contract, CPIM and GEUS will collaborate closely together to collect seabed data and samples to determine bathymetry, seabed features and subsurface geology. As part of the La Gan Geological Study contract, CPIM and GEUS will conduct an assessment of geological conditions, marine habitats and marine usage, which are key considerations in offshore wind farm development.

“Being one of the strong and long supporters for Vietnam’s transformation to a green and sustainable energy sector, Denmark is looking forward to the approval of Vietnam’s national Power Development Plan 8, (PDP 8) as it will set out a legal and solid foundation for the future development of the Vietnamese energy sector, including mobilization of the necessary social economic and financial resources, both local and international.

The signings today signify both the seriousness and willingness of the project in making big investments and getting financially and technically ready to move forward once they obtain the licence from the government. It is, therefore, a valid expectation that the project could be included in the PDP 8 as soon as possible, which will not only help create a good starting momentum for the sector but also contribute to the realization of the government’s vision on a sustainable and green energy sector,” said H.E. Ambassador of Denmark in Vietnam, Mr. Kim H. Christensen, at the signing ceremony.  

Ms. Maya Malik, Chief Executive Officer of the La Gan Wind Power Development Corporation added: “We are proud to support a collaboration between these highly competent Vietnamese and Danish government agencies, and be one of the first large-scale offshore wind farms to sign contracts for offshore geological surveys.

By awarding this scope to CPIM and GEUS, the La Gan Wind Power Development Corporation reaffirms our commitment to progress the project while supporting the local supply chain and facilitating knowledge transfer between international and local suppliers.

As a responsible and experienced developer, the La Gan Wind Power Development Corporation will ensure that the survey activities are conducted to the highest safety, environmental and social standards.”

For the past two years, the La Gan Project has been closely working with both Vietnamese and Danish authorities to develop the project. According to an economic impact study made by international experts from BVG Associates (World Bank consultants), the project will contribute more than US$ 4.4 billion to the Vietnamese economy over the project's lifetime. The project is also expected to create over 45,000 Full-Time Equivalent (FTE) local jobs in Vietnam, where 1 FTE is 1 job for 1 year.

Once fully installed, the project is predicted to power more than 7 million households and avoid 130 million tonnes of CO₂ emissions.