Call for increased use of hydrogen energy in Vietnam

There remains untapped potential for Việt Nam to develop green hydrogen energy. (Photo: vneconomy.vn)

According to the Ministry of Industry and Trade (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.

Challenges

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 stressed the need for clear investment incentives and a robust regulatory framework to support large-scale production and infrastructure expansion.

Le Ngoc Anh Minh, president of the Vietnam ASEAN Hydrogen Club, noted that hydrogen projects focusing on electrolysis using renewable energy are currently financially nonviable 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 emphasised that Government policies are essential to make clean hydrogen more competitive and to foster its development in the country.

Minh further suggested that industries such as oil and gas, mining and chemicals should be involved in hydrogen production to leverage their existing expertise. He also stressed the importance of international collaboration, citing partnerships with China as a potential way to reduce production costs.

He added that collaboration with the EU, the US and other hydrogen technology leaders could help strengthen Vietnam's position in the global hydrogen market.

Strategy

The Hydrogen Energy Strategy to 2030 approved by the Prime Minister has opened up new development space for Vietnam's energy industry in a green, clean and sustainable direction, under the views and policies of the Party and State, as well as global development trends.

Vietnam launched its hydrogen strategy in February 2024. The strategy sets 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 (PDP8).

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. Notable areas under consideration include Binh Dinh, Long An, Ninh Thuan, Quang Binh, Quang Tri, Soc Trang and Ho Chi Minh City./.