23-2-2024 (HANOI) Vietnam has set ambitious targets for hydrogen production as part of its energy transition plans, aiming to generate between 100,000 and 500,000 metric tonnes of hydrogen annually by 2030, according to the country’s recently adopted hydrogen development strategy.
The strategy, outlined in a government document reviewed by Reuters, envisions scaling up hydrogen production to 10 million to 20 million tonnes by 2050, including the production of green hydrogen. This renewable form of hydrogen is derived from water through electrolysis powered by renewable energy sources and is considered crucial for decarbonizing industries. However, the technology is still in its early stages and relatively expensive.
The production, distribution, and utilization of hydrogen will play a significant role in helping Vietnam achieve its national targets for climate change, green growth, and its aim to reach net-zero emissions by 2050, as stated in the document.
By 2030, hydrogen will partially replace natural gas and coal in power plants, providing a cleaner energy source. Additionally, hydrogen will be utilized in various sectors including transport, and the production of fertilizers, steel, and cement.
Looking ahead to 2050, hydrogen is expected to account for 10% of Vietnam’s electricity generation, contributing to a more sustainable and diversified energy mix.
Vietnam plans to mobilize both public and private funds for hydrogen production, including through green bond issuance and support from the Just Energy Transition Partnership (JETP). The JETP is a financing scheme composed of equity investments, grants, and concessional loans provided by members of the Group of Seven (G7), multilateral banks, and private lenders.
