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Mitsubishi Corp. will pull out of the $2 billion, 2-gigawatt Vinh Tan 3 power plant project in Vietnam as it shifts away from carbon-intensive businesses in the face of climate change.
The Vinh Tan 3 project is located in the southern province of Binh Thuan.
Mitsubishi has committed to reducing coal power investment to keep in line with international climate goals.
The Japanese trading house has a stake in the Vung Ang 2 coal station project in the central province of Ha Tinh, which is the focus of environmental groups and investors.
Mitsubishi sponsors the Vung Ang 2 coal station project through a joint venture with Hong Kong’s CLP Holdings where they have a 49 percent stake. The Electricity of Vietnam Group has a 29 percent stake with Thai Bin Duong Group holding the remainder.
Japanese companies and financiers are dropping support for coal due to pressure from shareholders and activists.
Japan’s big banks have committed to ending their financing for coal mines and power stations.
Vietnam is expected to shift from a large coal power rollout as renewables investments start to take hold.
