Global infrastructure investor Brookfield is partnering with Hon Hai Technology Group (Foxconn) to invest in and develop renewable energy projects in Vietnam that will support the operations of the electronics manufacturer and its supply chain partners.
The partnership will develop up to 1 gigawatt of utility-scale wind, solar and battery capacity, which will be underpinned by a long-term power purchase agreement. Both Brookfield and Foxconn will collaborate on the investment and asset management of target projects, the companies said in a joint statement.
Brookfield’s stake in the partnership will be made through its Catalytic Transition Fund, an emerging-markets vehicle anchored by $1 billion in capital from UAE-backed ALTERRA. The vehicle invests in and facilitates the transition to Net Zero in emerging markets and developing economies, including in Southeast Asia.
No further financial details were disclosed.
Other investments made under the Catalytic Transition Fund include a 100-megawatt wind project in central Vietnam, made last year; and the acquisition of Singapore-based clean energy developer Alba Renewables.
Brookfield has also partnered with Malaysian clean energy company Solarvest Holdings to develop, build, and operate solar and battery energy storage projects in the country.
Brookfield Asia Pacific Head of Energy Daniel Cheng said in the statement that the partnership “underscores the scale of corporate demand for renewable power in Vietnam.”
Cheng added: “Policy momentum around Southeast Asia is also providing a second-order tailwind for renewables development and our Catalytic Transition strategy, which has been very active over the past 12 months.
Foxconn chief investment officer James Tu said in the statement that Foxconn would be investing and managing alongside Brookfield. The partnership, Tu added, “ensures stable and cost-effective power supply for our continued growth in the region.”
Foxconn is reportedly expanding its already significant production operations in Vietnam, with plans to move into drones and industrial robots, in addition to its stable of consumer electronics. The expanded facilities will come with increased electricity and water demand, and are expected to be accompanied by environmental systems such as wastewater treatment capabilities.
