Hydrogen Energy in Vietnam: Challenges and Opportunities for Development
Key Ideas
  • Limited adoption of hydrogen in Vietnam due to challenges in storage, transportation, and distribution.
  • Significant obstacles include unclear investment guidelines, limited infrastructure, and high production costs.
  • Vietnam aims to produce 100,000 to 500,000 tonnes of green hydrogen annually by 2030, aligning with net zero emissions goals.
  • Plans to develop both blue and green hydrogen for domestic and export markets, with projects underway in various provinces.
Despite recognition of hydrogen energy's potential, Vietnam faces challenges in adopting hydrogen due to limited demand and infrastructure. The Ministry of Industry and Trade highlighted that the majority of domestic hydrogen demand comes from fertiliser factories and oil refineries. Industry experts emphasize the need for clear investment incentives and regulatory frameworks to support large-scale production. Financial viability remains a concern, with clean hydrogen production costs in Vietnam being higher than grey hydrogen. The recently approved Hydrogen Energy Strategy to 2030 sets ambitious targets for green hydrogen production, aiming to align with net zero emissions goals. Vietnam plans to develop both blue and green hydrogen, with projects already underway in various provinces. Collaboration with international partners like China, the EU, and the US is seen as crucial to reduce production costs and strengthen Vietnam's position in the global hydrogen market. The strategy also includes plans to pilot hydrogen and ammonia cofiring in power generation as part of the National Power Development Plan. Overall, while challenges persist, the hydrogen strategy presents significant opportunities for Vietnam's energy industry to transition towards a green, clean, and sustainable direction.
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