Posted on 26 Feb 2024
Vietnam’s industry and trade ministry is launching the country’s hydrogen development strategy, following Prime Minister’s Pham Minh Chinh’s approval earlier in the month.
The country aims to produce 100,000-500,000 tonnes/year of renewable and low-carbon hydrogen by 2030. Under the strategy document, seen by Kallanish, production is planned to increase to 10-20 million t/y by 2050.
Hydrogen is planned to partially replace natural gas and coal-power generation by 2030, potentially accounting for 10% of Vietnam’s energy mix by 2050. In addition to the transport sector, the government will push for hydrogen adoption in other hard-to-abate industries such as steel, fertiliser and cement.
“The hydrogen energy strategy approved by the Prime Minister has opened up new development space for Vietnam’s energy industry in a green, clean and sustainable direction,” the ministry says in a statement. “The goal set in the strategy is to develop Vietnam’s hydrogen energy ecosystem based on renewable energy.”
Yet, Vietnam leaves a door open for fossil fuel-based hydrogen production as long as it is done using “world-class” carbon capture and storage/use technologies.
A series of new mechanisms and policies will be adopted, including to encourage the use of hydrogen fuel for vehicles, equipment and infrastructure. Other “urgent tasks” revolve around promulgating national standards and regulations in the field of hydrogen production, consumption, storage, transportation and carbon capture and use, in line with international standards. The government will build national programs on technology R&D and workforce training.
To attract investment, the government says it will provide preferential incentives such as tax breaks and land access, while also closely reviewing investment policies for green hydrogen/ammonia production and export projects.
Vietnam says it is committed to a “sustainable, equitable and just energy transition,” targeting net-zero emissions by 2050.
Source:Kallanish
