en.Wedoany.com Reported - Foxconn and Brookfield have announced a partnership to develop renewable energy projects with a capacity of up to 1 gigawatt in Vietnam, integrating wind power, solar energy, and large-scale battery storage.
The collaboration takes the form of a long-term Power Purchase Agreement (PPA). According to data from the World Economic Forum, manufacturing accounts for approximately 20% of global carbon emissions; the U.S. government estimates that the sector consumes 54% of global energy consumption. United Nations data shows that more than half of global manufacturing occurs in Asia, with Vietnam's manufacturing share also increasing.
Brookfield will invest through its Catalytic Transition Fund, which is designed to channel private capital into clean energy projects in emerging markets and has received $1 billion in catalytic capital support from ALTÉRRA. Its structure aims to attract more private investment by improving risk-adjusted returns in markets that have historically been difficult to finance. Daniel Cheng, Head of Energy for Brookfield in Asia Pacific, stated that the partnership highlights the scale of corporate demand for renewable energy in Vietnam, one of Asia's fastest-growing economies.
As global manufacturers shift to renewable energy to leverage its cost competitiveness, speed to market, and energy security advantages, demand for long-term supply in the region is strong and growing. Daniel noted that policy developments in Southeast Asia are a secondary factor.
This partnership extends beyond Foxconn's own operations, covering its activities in Vietnam and its broader supplier network, differing from typical corporate PPA structures that focus solely on a single buyer's energy needs. James Tu, Chief Investment Officer of Foxconn, expressed delight in becoming a strategic partner of Brookfield to secure long-term renewable energy access for its operations and supply chain in Vietnam. The initiative is jointly invested and managed by both parties, aiming to provide stable and cost-effective electricity supply for the region's continued growth, with a structure that can offer energy access to companies within Foxconn's supply chain network.
Vietnam's power system has faced capacity pressures in recent years, and its ability to attract such long-term investment may indicate progress in the country's energy transition on an industrial scale. Brookfield describes the deal as an addition to its global portfolio of the largest renewable energy assets, encompassing hydropower, wind power, solar energy, and storage across five continents.
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