Standard Chartered provides finance advisory services for VN's first green hydrogen project in the Mekong Delta

Friday, May 17, 2024 09:00

Standard Chartered Bank Vietnam and TGS Trà Vinh Green Hydrogen Corporation at the signing of the agreement. — Photo courtesy of the bank

Standard Chartered Bank Vietnam and TGS Trà Vinh Green Hydrogen Corporation (TGS), a member of The Green Solutions Group, have signed a binding project finance advisory services agreement.

Through the agreement, Standard Chartered will leverage its financial expertise to act as a financial advisor on the development and operation of TGS’s 260MW Trà Vinh green hydrogen manufacturing project in Trà Vinh Province. The project represents Việt Nam's first green hydrogen plant in the Mekong Delta.

TGS, which has been a pioneer in the green hydrogen and ammonia sector in Việt Nam since 2021, will be using Standard Chartered's financial expertise and global network, to successfully deliver solutions required to realise the project.

Michele Wee, CEO of Standard Chartered Vietnam, said: “As a leading international cross-border bank, we are committed to delivering sustainable, inclusive growth and prosperity for our markets. The agreement with TGS illustrates Standard Chartered’s expertise in creating bespoke and innovative financing solutions for our clients that support the breadth of their sustainability ambitions. We are steadfast in our commitment to working closely with our clients and our partners to mobilise sustainable finance to where it matters most and to contribute to the sustainable development of Việt Nam.”

Winnie Huynh, Founder and CEO of TGS, said: “We are delighted to have concluded this agreement which formalises and strengthens TGS’s existing partnership with Standard Chartered, which we share a common understanding and commitment towards a common good cause, which is reducing carbon emissions and boosting economic growth in the Mekong Delta region. This enhanced cooperation with Standard Chartered marks a key milestone in our drive to fight climate change.”

The agreement follows the signing of a memorandum of understanding (MoU) between Standard Chartered and The Green Solutions Group at the 28th Conference of the Parties (COP28) in Dubai in December 2023, which was witnessed by Việt Nam's Prime Minister Phạm Minh Chính and the bank’s group Chief Executive Bill Winters. The formalisation of the agreement solidifies Standard Chartered and TGS’s joint ambition to deliver on the Vietnamese government’s goal of reaching net zero emissions by 2050.

At COP28, Standard Chartered and the Việt Nam Government exchanged five MoUs, valued at approximately US$3 billion in sustainable financing, to support local businesses achieve their sustainability goals. Standard Chartered is committed to expanding the scale and reach of sustainable finance, with plans to mobilise $300 billion in sustainable finance by the end of the decade. It aims to achieve net zero in its financed emissions by 2050 and in its own operations by 2025. — VNS

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