Coro Energy PLC (AIM:CORO) has added another customer to its Vietnam rooftop solar platform, signing 25-year equipment lease and operations and maintenance contracts with An Viet Phat Group for an initial 1.6MW rollout across two factories.
The AIM-quoted firm said the projects will be installed under a rooftop solar leasing model that complies with recent changes to Vietnam’s electricity law.
An EPC contract has been signed with Peb Steel Buildings Company Limited, with construction expected to begin this month. Coro said the initial sites will be funded from existing cash resources.
The bigger attraction is the potential follow-on work. Coro said it is in advanced discussions with AVP on an additional five factories with an estimated capacity of 8.4MW.
This would take the overall opportunity with the customer to 10.0MW. AVP is a privately owned Vietnamese group focused on biomass energy and wood-based products and, according to Coro, ranks among the world’s leading wood pellet exporters.
Chairman Tom Richardson said the possible expansion from 1.6MW to 10.0MW underlined the repeatability of Coro’s model and the depth of its pipeline.
The company added that projects of this kind are expected to sit within the portfolio for its previously announced proposed senior secured debt facility once that arrangement is finalised.