In a major move to boost energy efficiency and sustainability, Vietnam’s leading steel manufacturer Hoa Sen Group has partnered with Singapore-based SP Group to implement a Cooling-as-a-Service (CaaS) system alongside a rooftop solar power project. The green initiative is expected to cut the company’s cooling-related electricity consumption by over 30% annually and reduce carbon emissions by 14,000 tons.
Under the agreement, SP Group will install a 1,900 refrigeration-ton CaaS system at Hoa Sen’s steel sheet facilities in Phu My and Nghe An, with operations set to commence in the second quarter of 2026. Rather than investing in its own infrastructure, Hoa Sen will pay for the cooling service, optimizing operational costs while avoiding upfront capital expenditure.
Complementing the smart cooling system, SP Group has also completed the installation of 17.6 megawatts peak (MWp) of rooftop solar capacity across the two sites. Commissioned in March and June this year, the solar arrays are projected to generate around 21,000 megawatt-hours (MWh) of clean electricity annually—equivalent to offsetting the emissions of 3,300 cars.
Nguyen Minh Phuc, Deputy General Director of Hoa Sen Group, emphasized the company’s long-term sustainability goals, stating, “This marks another key step in aligning our operations with Vietnam’s 2050 net-zero target. We’re committed to energy transition and building green infrastructure across our production network.”
Founded in 2001, Hoa Sen has made significant strides in environmental accountability. The company has completed carbon inventories for all domestic steel plants and secured carbon footprint certification for nearly 20 of its products. It has also signed multiple clean energy cooperation deals aimed at accelerating decarbonization.
SP Group, which entered the Vietnamese market in 2021, now manages nearly 400 MWp of solar assets across over 50 commercial and industrial clients. Brandon Chia, Managing Director of Southeast Asia Sustainable Energy Solutions at SP Group, noted that this project marks their first CaaS deployment in Vietnam. “We see strong potential to scale this model nationwide,” he said.
The initiative underscores a growing trend among industrial giants in Southeast Asia to decouple growth from carbon emissions through smart, service-based energy solutions.
