Renewable sources: The hustle and bustle of a busy road in Hanoi. Experts say that Vietnam has a formidable national hydrogen strategy, but the absence of a sound system for storing, transporting and distributing is stalling its development. — AFP
HANOI: Despite the government’s recognition of hydrogen energy’s potential and the launch of a national strategy, experts say the adoption of hydrogen in Vietnam remains limited.
According to the Industry and Trade Ministry (MoIT), the majority of domestic hydrogen demand in Vietnam is sourced from fertiliser factories, which account for approximately 316,000 tonnes per year, as well as the Dung Quat oil refinery (39,000 tonnes) and the Nghi Son oil refinery and petrochemical complex (139,000 tonnes).
The ministry said that while industries like steel manufacturing and float glass production use a small amount of hydrogen, this limited demand has contributed to the absence of a developed system for storing, transporting and distributing hydrogen in the country.
Additionally, Vietnam has not yet begun exporting hydrogen energy, the MoIT noted.
Experts have highlighted significant challenges in the development of hydrogen energy in Vietnam, citing unclear investment guidelines, limited infrastructure and a lack of regulations.
They have called for clear investment incentives and a robust regulatory framework to support large-scale production and infrastructure expansion.
Vietnam Asean Hydrogen Club president Le Ngoc Anh Minh noted that hydrogen projects focusing on electrolysis using renewable energy are currently financially non-viable due to high production costs.
Minh pointed out that major hydrogen projects in Europe and Australia are also facing delays or cancellations because of the same issue.
According to the Vietnam Petroleum Institute (VPI), the cost of producing clean hydrogen – blue and green hydrogen – will remain high until the end of the year, with production costs in Vietnam being 1.3 to 2.1 times that of grey hydrogen.
The institute said that government policies are essential to make clean hydrogen more competitive and to foster its development in the country.
Minh also suggested that industries such as oil and gas, mining and chemicals should be involved in hydrogen production to leverage their existing expertise. He said called for international collaboration, citing partnerships with China as a potential way to reduce production costs.
He added that collaboration with the European Union, the United States and other hydrogen technology leaders could help strengthen Vietnam’s position in the global hydrogen market.
The Hydrogen Energy Strategy to 2030, approved by the Prime Minister’s office, has opened up new development space for Vietnam’s energy industry in a green, clean and sustainable direction.
Vietnam launched its hydrogen strategy in February 2024. The strategy set an ambitious goal of producing 100,000 to 500,000 tonnes of green hydrogen annually by 2030, with a long-term target of 10 to 20 million tonnes per year by 2050.
These targets align with the country’s broader net-zero emissions goal.
The strategy includes plans to develop both blue hydrogen, from natural gas and carbon capture, and green hydrogen from renewable sources, serving both domestic and export markets.
Vietnam also plans to pilot hydrogen and ammonia cofiring in power generation as part of its National Power Development Plan 8. The MoIT said several green hydrogen production projects are being developed in Tra Vinh, Ben Tre, Bac Lieu and Tien Giang.
Some domestic and foreign investors are also collaborating with local authorities to research and propose further hydrogen production projects. — Viet Nam News/ANN
