Equinor, the Norwegian energy company, is pulling out of Vietnam’s offshore wind market as part of a broader strategy to refocus its portfolio. The decision comes amid ongoing political instability in Vietnam and uncertainties surrounding the company’s development plans in the region.
A spokesperson for Equinor confirmed to Reuters that the company will cease its business development activities in Vietnam and close its Hanoi office, which was dedicated to offshore wind initiatives.
This move is consistent with Equinor’s recent strategy to withdraw from over a dozen fossil fuel projects to concentrate on renewable energy and low-carbon technologies.
Despite Vietnam’s significant potential for offshore wind energy, the sector faces significant challenges, particularly due to legal uncertainties and regulatory ambiguities. Last year, Danish offshore wind leader Ørsted A/S also halted its plans for a multi-gigawatt offshore wind project in Vietnam, citing similar regulatory issues.
As of now, Vietnam has yet to launch any true offshore wind projects, having only developed intertidal wind projects located near the shore. The country’s goal of installing 6GW of offshore wind capacity by 2030 remains a substantial challenge, according to the Global Wind Energy Council (GWEC).