Vietnam
Green Hydrogen Vision
Vietnam envisions becoming a leader in green hydrogen energy by leveraging its abundant renewable energy resources and advancing sustainable technologies. The country's strategy emphasizes producing green hydrogen through renewable sources like wind and solar, aligning with global energy transition trends. By 2050, Vietnam aims to establish itself as a regional hub for green hydrogen production and export, contributing significantly to decarbonizing its economy and achieving net-zero emissions. This vision integrates environmental protection, economic growth, and international cooperation to foster a sustainable and competitive hydrogen energy ecosystem.
National Strategy
Vietnam's 2024 green hydrogen strategy seeks to align with both the national energy development roadmap and global trends, emphasising the production of green hydrogen from renewable energy sources. The key areas of focus include developing infrastructure for production, storage, transportation, and utilisation and promoting policies that encourage hydrogen use in high-emission sectors, like electricity, transportation, and industry. Furthermore, Vietnam intends to harness its renewable energy capabilities to position itself as a regional hub for green hydrogen production and export.
The strategy outlines specific actions and solutions to reach these objectives, including the establishment of regulatory frameworks, provision of incentives, and facilitation of technology transfer. Investments in research, pilot projects, and infrastructure are prioritized to aid in the gradual transition from fossil fuels to hydrogen-based energy. Collaboration with international organizations and the private sector is essential to accessing financial support, technical expertise, and market opportunities. Additionally, Vietnam aims to create a competitive hydrogen energy market and enhance its integration into both domestic and global supply chains.
The strategy also highlights the importance of environmental protection, sustainable development, and workforce training. It encompasses initiatives to reduce greenhouse gas emissions, embrace low-carbon technologies, and ensure safety in hydrogen energy operations. Public awareness campaigns will promote the advantages of hydrogen energy and its significance in Vietnam's green growth strategy. By the year 2050, the nation aims to achieve net-zero emissions, bolstered by a strong hydrogen energy sector that supports both economic and environmental goals.
Capacity and Capacity targets
By 2030:
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Hydrogen production capacity: 100,000 to 500,000 tons/year from renewable energy and carbon capture processes.
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Infrastructure for hydrogen energy storage, transportation, and distribution will be piloted using existing systems.
By 2050:
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Hydrogen production capacity: 10 to 20 million tons/year.
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Fully developed infrastructure for hydrogen storage, distribution, and use, accommodating 10-20 million tons/year.
Impact Targets
Energy Transition:
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Transitioning sectors like electricity production, transportation, and industry to hydrogen-based energy to decarbonize.
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By 2050, hydrogen energy and hydrogen-based fuels to account for approximately 10% of final energy consumption.
Green Economy Goals:
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Significant reduction in greenhouse gas emissions and achieving net-zero emissions by 2050.
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Promoting the use of green hydrogen in industries such as steel, cement, and petrochemical refining.
Global Role:
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Establishing Vietnam as a clean energy industrial hub and a regional exporter of renewable energy and green hydrogen.
Policy Spotlight
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3TI Progetti, an urban design firm based in Rome, and Chinese companies United Energy Group and the Chengdu Institute have proposed investing in a significant green hydrogen project in Ninh Thuan, a province in southern Vietnam. This project would feature 1GW of wind energy, 500MW of solar power, and an electrolyser facility that can generate 400,000 tonnes of hydrogen annually. The consortium plans for the green hydrogen production facility to be located within the Ca Na industrial park, currently under development in the Thuan Nam district.
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Vietnam has also undertaken several pilot projects to fulfil its Green Hydrogen ambitions.
Financing
Initial Phase:
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Investment in small-scale pilot projects for clean hydrogen production to reduce costs and establish feasibility.
Funding Sources:
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Diverse funding mechanisms, including domestic and international investments, green credits, climate finance, and green bonds.
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Leveraging international support from partnerships like COP, JETP, and AZEC.
Investment Models:
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Encouraging private, public-private partnerships, and state enterprise investments in hydrogen energy projects.
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Incentives such as tax benefits, land allocation, and favourable policies attract investments.
- In March 2023, The Green Solutions Group Corp. (TGS) based in Vietnam commenced construction of the Tra Vinh Green Hydrogen project, marking the country's first green hydrogen facility in the Mekong Delta. The plant will have an annual production capacity of 24,000 metric tons, a two-year construction timeline, and a budget of $327.7 million. At the UN Climate Change Conference (COP28), Honeywell entered a memorandum of understanding with TGS to supply equipment for this initiative.
- On March 7, 2024, China Huadian Engineering Co. Ltd., a subsidiary of one of China's leading power generators, China Huadian Corp., collaborated with Vietnam's Minh Quang JSC to engage with officials from the central province of Quang Tri regarding a $2.39 billion investment in a green hydrogen project. This venture will include a 1,200 MW wind power plant, an 800 MW solar power facility, and a water electrolysis plant for hydrogen production, along with necessary storage and transport infrastructure. The first phase will feature a green hydrogen plant paired with a 200-MW solar farm.
- Italy and China have committed to investing $2 billion in green hydrogen projects.
Government green hydrogen lead
Ministry of Industry and Trade (MoIT)