SGC E&C Co., an engineering construction business operator, announced Friday that it has signed a memorandum of understanding (MOU) with Vinacomin Power Holding Corp., a state-run power company in Vietnam, to jointly promote the conversion of coal power plants into eco-friendly biomass facilities.

Under the agreement, the two parties will collaborate on converting two of Vinacomin Power’s currently operating coal-fired plants into biomass-based generation units.

SGC E&C will take the lead in providing technical consulting, conducting preliminary feasibility studies, and formulating optimal technical applications and detailed execution plans.

Vinacomin Power will support the transition by offering technical and financial information on the existing plants, assisting in the advancement of plant design and performance, and managing necessary administrative approvals from the Vietnamese government.

Through the partnership, SGC E&C aims to gain an early foothold in Vietnam’s renewable energy market.

“We will focus our capabilities on diversifying our global project portfolio and enhancing competitiveness in overseas operations,” said Lee Chang-mo, chief executive officer at SGC E&C. “We plan to work closely with Vinacomin Power to ensure the project’s success.”

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