Vietnam Has Embraced A Hydrogen Energy Strategy To Enhance The Energy Transition

Vietnam has recently implemented a new strategy outlining development targets for the hydrogen industry until 2030, with a vision for 2050. This strategy aims to support the country’s sustainability, expand power capacity, and achieve decarbonization goals. The Hydrogen Energy Strategy, which became effective on February 7, 2024, is anticipated to attract interest from international investors and stakeholders in energy research and technology.

As part of a broader effort to transform the country’s energy market and achieve sustainability goals, Vietnam has approved Decision No: 165/Qd-Ttg, focusing on the development of its hydrogen energy capacity and utilization. This decision establishes specific development targets for the hydrogen industry.

The Hydrogen Energy Strategy is based on the National Energy Development Master Plan, which provides a framework for Vietnam's energy sector, including oil and gas, coal, electricity, and renewable energy, from 2021 to 2030, with a vision to 2050.

The Hydrogen Energy Strategy officially became effective on February 7, 2024, the day it was adopted.

Goals of the Hydrogen Energy Strategy

The primary objective of the Hydrogen Energy Strategy is to develop Vietnam's hydrogen energy ecosystem, covering production, storage, transportation, distribution, domestic use, and export. This development aims to ensure energy security, meet national climate change and green growth goals, and achieve Vietnam’s 2050 net-zero emissions target.

Key goals include transitioning traditional power plants to use hydrogen energy, implementing carbon capture technologies, expanding hydrogen production capacity, and adapting existing infrastructure for the hydrogen energy market supply chain.

The strategy also outlines specific goals for 2030 and 2050.

Targets for the production of hydrogen energy

The Hydrogen Energy Strategy aims to achieve the following by 2030:

1. The aim of the Hydrogen Energy Strategy by 2030 is to utilize cutting-edge global technologies for the production of green hydrogen energy in Vietnam.

2. By 2030, the goal is to incorporate advanced global technologies in carbon capture and utilization/storage (CCS/CCUS) into the process of generating hydrogen energy from sources like coal and natural gas.

3. The target by 2030 is to achieve a production capacity of hydrogen from renewable energy usage and other processes with carbon capture, reaching approximately 100,000 to 500,000 tons per year.

By 2050, Vietnam's objectives are as follows:

1. The aim is to assimilate and become proficient in advanced technologies for producing green hydrogen energy in Vietnam.

2. By 2050, Vietnam aims to assimilate and become proficient in advanced technologies in CCS/CCUS integrated with the process of producing hydrogen energy from other sources.

3. The target for 2050 is to strive for a production capacity of hydrogen from renewable energy utilization and other processes with carbon capture, reaching about 10 to 20 million tons per year.

Targets for the utilization of hydrogen energy

The Hydrogen Energy Strategy aims to gradually develop the hydrogen energy market in various sectors such as electricity production, transportation, industrial, commercial, and civil industries by 2030. This includes deploying and testing hydrogen-derived energy in different fields and utilizing existing infrastructure. The strategy also involves researching and piloting the co-firing of gas with hydrogen and coal with ammonia at power plants, as well as implementing hydrogen energy in public and long-distance transportation. Additionally, the strategy aims to replace grey hydrogen with green hydrogen in fertilizer production and oil refining and to pilot the use of hydrogen and hydrogen-origin fuels in industries such as green steel and cement production while maintaining low emissions.

By 2050, Vietnam aims to promote the application of green hydrogen energy and hydrogen-origin fuels in all energy-consuming sectors to achieve the net-zero emissions goal. This includes transitioning gas-fired and LNG-fired power plants to use hydrogen, as well as transitioning to using hydrogen energy in fertilizer production, oil refining, steel, and cement production. The country also plans to transition to using hydrogen energy and hydrogen-origin fuels for vehicles and aims to develop the hydrogen-origin energy consumption market through market mechanisms and healthy competition with other forms of energy. The target is for the share of hydrogen energy and hydrogen-origin fuels to reach about 10 percent of the final energy consumption demand.

Goals for storing, transporting, and distributing hydrogen energy

In 2030, Vietnam's goal is to conduct research and pilot projects utilizing current energy infrastructure for the safe and cost-effective storage, transportation, and distribution of hydrogen energy. They also aim to research and establish pilot centers and specialized equipment production facilities for the transportation, storage, and distribution of hydrogen energy. By 2050, Vietnam plans to develop and upgrade infrastructure for storing, distributing, and utilizing hydrogen on a scale of approximately 10 to 20 million tons per year. Additionally, they intend to expand and improve hydrogen distribution systems for the transportation sector nationwide in alignment with global trends.

Targets for exporting hydrogen energy

Vietnam's goal for 2030 is to utilize its renewable energy sources, such as wind and solar power, and its geographic advantages to attract investment in the production of green hydrogen energy for export. This initiative aims to ensure energy security, national defense, and economic efficiency.

By 2050, Vietnam aims to establish a comprehensive industrial energy ecosystem centered around renewable, new, and green hydrogen energy. The objective is to position Vietnam as a leading hub for the clean energy industry and the export of renewable and green hydrogen energy within the region.

Policy Formulation and Execution

The Hydrogen Energy Strategy details several approaches and policies to accomplish its objectives. These approaches involve creating and enhancing the legal structure for market development, defining transition processes, and enforcing investment regulations and favorable policies. Additionally, national standards and regulations in the hydrogen energy sector will be reassessed and modified to conform to global regulations and standards.

Regulations and Systems

The Hydrogen Energy Strategy emphasizes the need to establish and enhance regulations for renewable energy, including hydrogen energy, within the revised Electricity Law. This is aimed at providing a strong legal foundation and transparency for market development, as well as promoting the sustainable growth of new and renewable energy. The strategy also calls for the creation of mechanisms and legal frameworks to encourage fossil fuel-based energy enterprises to transition to hydrogen energy production and usage. Additionally, regulations will be introduced for investment approval in offshore wind power projects and projects for the production and export of hydrogen/ammonia using renewable energy sources. Furthermore, preferential policies such as tax incentives, fee reductions, and land policies will be implemented to attract investment in the development of hydrogen energy sectors.

Financial Investments

We will initially invest in small-scale pilot projects to produce clean hydrogen energy, and then expand to larger-scale projects in regions with renewable energy potential. We will mobilize various sources of capital, both domestic and international, to remain competitive in the energy market. We will use green financing and climate financing, and negotiate funding support from international partners.

Science and technology

We will incorporate regular updates on worldwide progress in energy-related technologies. Emphasis will be placed on research, technology transfer, and implementation in the production of hydrogen energy, encouraging domestic energy companies to invest in R&D.

Training and human resource development

Our strategy involves creating training and development plans for human resources in essential technology areas of the hydrogen energy industry. Additionally, Vietnam will aim to enhance partnerships with local and international training institutions, with a focus on vocational training for proficient workers in modern technologies.

Protection of the environment and the promotion of sustainable development

The plan outlines Vietnam's aim to shift from fossil fuels to hydrogen-based energy in order to decrease air pollution and greenhouse gas emissions, achieve net-zero emissions by 2050, safeguard the environment, and promote sustainable development.

To accomplish this, Vietnam will encourage the adoption of advanced scientific and technological advancements to facilitate a rapid transition to a low-carbon and circular economy, reduce energy consumption and emissions, and adhere to carbon emission regulations for exported goods and the carbon market.

Additionally, it will execute the development of hydrogen-based energy projects and infrastructure following environmental protection laws and biodiversity regulations, ensuring secure and reliable operation while minimizing risks, losses, and damages resulting from climate change.

Collaboration on a global scale

Vietnam aims to enhance global cooperation in research, technological advancement, and the utilization of hydrogen energy. It also aims to establish strategic alliances to meet production, consumption, export, and import targets. The country will maximize international commitments and assistance for technology transfer, governance, human resource development, and financial provision.

Activities related to communication

Vietnam intends to promote public understanding of the advantages of clean energy, particularly hydrogen, through communication initiatives. Collaboration with government agencies, institutions, and individuals will support the dissemination and educational campaigns on the hydrogen economy and clean energy policies across society.

Conclusion

In conclusion, Vietnam's Hydrogen Energy Strategy, with targets set for 2030 and a vision for 2050, marks a significant step toward achieving sustainability, energy security, and decarbonization goals. The strategy outlines ambitious objectives for hydrogen production, usage, storage, and export, emphasizing the transition to a low-carbon economy and promoting green energy technologies. Through international cooperation, policy implementation, investment, and a focus on science and technology, Vietnam aims to become a regional leader in the clean energy industry, contributing to a greener and more sustainable future.