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| There’s a lot of untapped potential for Vietnam to develop green hydrogen energy. (Photo: vneconomy.vn) |
Despite the Vietnamese government recognizing the potential of hydrogen energy and launching a national strategy, experts say that the adoption of hydrogen in Vietnam is still limited.
According to the Ministry of Industry and Trade (MoIT), most of the domestic demand for hydrogen in Vietnam comes from fertilizer factories, which account for approximately 316,000 tons per year. In addition, the Dung Quat oil refinery and the Nghi Son oil refinery and petrochemical complex also demand 39,000 and 139,000 tons, respectively.
The ministry noted that while industries like steel manufacturing and float glass production do use hydrogen, the demand is relatively small. This limited demand has hindered the development of a robust system for storing, transporting, and distributing hydrogen in the country.
On top of that, Vietnam has not yet started exporting hydrogen energy, the MoIT pointed out.
Challenges and Opportunities
Experts have identified several significant challenges in Vietnam’s hydrogen energy development, including unclear investment guidelines, limited infrastructure, and a lack of regulations. They emphasize the need for clear investment incentives and a strong regulatory framework to support large-scale production and the expansion of necessary infrastructure.
Le Ngoc Anh Minh, president of the Vietnam ASEAN Hydrogen Club, highlighted that hydrogen projects focusing on electrolysis using renewable energy are currently financially unviable due to high production costs. This challenge is not unique to Vietnam, as major hydrogen projects in Europe and Australia are facing similar issues, leading to delays or cancellations.
According to the Vietnam Petroleum Institute (VPI), the cost of producing clean hydrogen (blue and green hydrogen) will likely remain high until the end of the year, with production costs in Vietnam being significantly higher than those of grey hydrogen.
To address this, Minh suggested leveraging the expertise of industries such as oil and gas, mining, and chemicals in hydrogen production. He also emphasized the importance of international collaboration, particularly with China, as a potential way to reduce production costs. Additionally, collaboration with hydrogen technology leaders like the EU and the US could strengthen Vietnam’s position in the global hydrogen market.
Vietnam’s Hydrogen Energy Strategy
The Hydrogen Energy Strategy to 2030, approved by the Prime Minister, has set ambitious goals for Vietnam’s energy industry. The strategy aims to produce 100,000 to 500,000 tons of green hydrogen annually by 2030, with a long-term target of 10 to 20 million tons per year by 2050. These targets are in line with the country’s broader net-zero emissions goal.
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