PTSC and Ørsted signed contract for manufacture and supply of foundations for the Greater Changhua 2b & 4 offshore wind farms

Friday, 19 May 2023, PetroVietnam Technical Services Corporation (PTSC) signed a major contract to Ørsted Taiwan Ltd (Ørsted) for manufacture and supply foundations for the 920 MW Greater Changhua 2b and 4 offshore wind farms in Taiwan.

The signing ceremony was held at PTSC’s manufacturing site, the Vietnam’s largest fabrication yard, in Ba Ria – Vung Tau province. The ceremony was graced by the presence of  Mr. Nguyen Duc Hien - Deputy Head of Central Economic Commission, Mr. Nguyen Ngoc Bao - Vice Chaiman of National Assembly Economic Committee, Mr. Dang Minh Thong - Vice Chairman of the People's Committee of Ba Ria – Vung Tau Province, Mr. Tran Dinh Khoa - Secretary of Vung Tau City Party Committee, Mr. Hoang Vu Thanh - Chairman of the People's Committee of Vung Tau City, Mr. Hoang Quoc Vuong - Secretary of the Party Committee, Chairman of the Board of Members of Vietnam Oil and Gas Group, Mr. Troels Jakobsen - Deputy Ambassador of the Kingdom of Denmark in Vietnam, other relevant authorities from Central and Provincial level, Vietnam National Oil and Gas Group (PVN) and senior leaders from PTSC and Ørsted.

Under the agreement, PTSC will produce 33 suction bucket jacket (SBJ) foundations for the 920 MW Greater Changhua 2b and 4 offshore wind farms. Each foundation has the height of ~84 m and the weight of ~2.300 MT. The project is estimated to use up to 70.000 tons of steel and PTSC will complete the delivery of the last batch of SBJ foundations to Ørsted by the end of 2024.

This contract represents a remarkable milestone in PTSC’s history of establishment and development. PTSC has been transforming its business mindset and production method from single tailor-made unit to serial production with large quantity, high productivity and closed production line which are totally different from traditional oil and gas projects. This is the first time Vietnam has a huge export contract in the new industry of offshore wind energy. Winning this contract is unquestionably a historical turning-point, assisting PTSC in widely expanding its brand name and, for the first time, putting the name of Vietnam on the map of the world’s renewable energy resources. Furthermore, the gaining of this contract has been creating a spillover effect, contributing to the formation of  the supply chain network for the renewable energy industry in Vietnam while involving both the direct and indirect participations of many Vietnam’s enterprises in various sectors related to the subcontractor roles to PTSC, including but not limited to those from oil & gas, military, FDI, and particularly, the local enterprises in BR-VT and its neighboring provinces. The development of this model will definitely create the favorable conditions for many of the local enterprises to quickly enhance their business capabilities in order to be ready for the leading roles in Vietnam’s renewable energy supply chain in the future.

In addition, the success of executing this contract will help PTSC contribute to the realization of the Power Development Plan for the period 2021-2030, with a vision to 2050 (Power Plan 8), which was approved by the Vietnam Government on May 15. 2023. These efforts will include: promoting the establishment of the renewable energy industrial Center in Ba Ria – Vung Tau province and the Southeast region of Vietnam; creating a comprehensive renewable energy industrial Ecosystem with the involvement of a significant number of local enterprises in the supply chain network; enhancing the engineering, fabrication & construction capabilities with the maximization on the local content percentage; proactively investing in and carrying out renewable energy projects in Vietnam in the near future; collaboratively safeguarding the security of the nation's energy and defense.

Mr. Le Manh Cuong, President & CEO of PTSC, says: “ PTSC strongly believes that the Contract for manufacture and supply of foundations for the Greater Changhua 2b and 4 offshore windfarm to Ørsted  is a small step taken by PTSC, but it will open a very big step forward to the development of the renewable energy industry in Vietnam in the near future”.

At the ceremony, Mr. Le Manh Cuong – President & CEO of PTSC emphasized that PTSC will utilize all committed resources to complete the contract safely and efficiently. Once again, he requested the continued support from all-level authorities from the Central Government, Ministries and Branches, Ba Ria – Vung Tau Province, Vung Tau City and PVN for the successful accomplishment of this major contract as well as for PTSC’s on-going and upcoming investment plans on the infrastructure, equipment and manufacturing facilities for the upgrade and extension of PTSC’s operational capabilities and supply chain network, heading to jointly transform Ba Ria-Vung Tau province into the notable supply chain Hub for the renewable energy industry, not only in Vietnam but also in Asia-Pacific region. 

About Ørsted:
Ørsted was founded in 1972, formerly the Danish National Oil Company (DONG) but has completely transformed into the Danish National Renewable Energy Group with 50.1 % of shares held by the Government of Denmark. Orsted is the global leader in Renewable Energy. Orsted currently owns and operates 15.1 GW of Renewable Energy. Orsted is currently committed to deploying 32.7 GW of Renewable Energy worldwide and aims to build 50 GW of Renewable Energy by 2030 (including 30 GW of Offshore Wind).

The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in Denmark, Ørsted employs approx. 8,000 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2022, the group's revenue was DKK 132.3 billion (EUR 17.8 billion).

Bui Thi My