Coro Energy PLC (AIM:CORO) has inked a deal that delivers a low-cost entry into the fast growing Vietnamese energy sector as an independent power producer.
The company, in a statement, told investors it is acquiring an 85% interest in a new joint venture company, to be called Coro Renewables Vietnam, with initial funding of US$500,000 (£372,000).
It intends to use the cash proceeds to immediately develop a 5MW pilot rooftop project, through to 'Ready to Build' status, and it will have the option to fund the project through construction. The broader acquired portfolio comprises a pipeline of some 150MW of future projects.
"I am delighted to announce the entry of binding agreements in connection with our Vietnamese roof-top solar project, which moves Coro closer to maiden revenues with the pilot project and a step forward on our strategic goal of being a major regional player in the renewables space," said chief executive Mark Hood.
The joint venture is with Vinh Phuc Energy (VPE), a highly regarded local EPC contractor, which will retain a carried 15% interest in the new company.
Coro’s Vietnamese entry comes after an initial agreement was struck with VPE back in July.
It is part of the company’s planned growth through clean energy projects across South East Asia.