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Vietnam develops offshore hydrogen production

Green hydrogen production using offshore wind turbines is an optimal solution that many countries around the world have applied in their energy transition. Vietnam also considers it one of the solutions breakthroughs to achieve net-zero emissions by 2050.

Điện gió ngoài khơi

According to Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, hydrogen has been recognized as a clean energy source that is indispensable in the energy structure of many countries to achieve the goal of carbon neutrality by 2050.

As of early 2023, more than 40 countries had issued national hydrogen strategies and major financial support policies to form and develop the hydrogen industry. In particular, the EU aims to produce green hydrogen to account for 13 percent to 14 percent of the energy structure by 2050. Japan and the Republic of Korea (RoK) target to develop clean hydrogen, including green hydrogen and blue hydrogen to make up 10 percent and 33 percent of the national energy structure by 2050, respectively.

In Vietnam, the Ministry of Industry and Trade is drafting a hydrogen production strategy and deploying gas power and offshore wind power projects according to the Politburo's Resolution No. 55-NQ/TW on the strategic orientation of Vietnam's national energy development until 2030 with a vision to 2045, dated February 11, 2020, and Decision No. 893/QD-TTg approving the National Energy Master Plan for the 2021-2030 period with a vision to 2050, dated July 26, 2023.

Under the draft strategy, Vietnam will promote the development of hydrogen energy production and hydrogen-derived fuels in potential areas to target a hydrogen output of 100,000-500,000 tons by 2030 and 10-20 million tons by 2050.

According to the Vietnam Petroleum Institute (VPI), until 2025, the cost of producing clean hydrogen, including blue hydrogen and green hydrogen, will still be very high. So, the Government's support policies are needed for clean hydrogen production to be developed and gradually improved in Vietnam, thus ensuring the competitiveness of clean hydrogen sources.

The support policies for hydrogen development need to reduce risks to investors. specifically, hydrogen production should be added to national energy planning to create a legal framework and priority list for hydrogen development projects. Moreover, preferential tax rate policies, standards, technical regulations, and safety regulations are also needed to ensure the synchronous development of the hydrogen value chain.

With the advantage of production networks and supply chains in green hydrogen development, the Vietnam Oil and Gas Group (PVN) has participated in the process of planning strategies and policies to create the necessary legal framework for the development of the green hydrogen industry.

The PVN focuses on research and application, accessing new technologies in production, transportation, storage, and use of hydrogen to be ready for commercial production.

Regarding hydrogen use, the PVN's petrochemical refineries and nitrogen fertilizer factories are direct customers using green hydrogen sources to gradually replace the current gray hydrogen source. In addition, the PetroVietnam Technical Services Corporation (PTSC) - is implementing offshore wind power projects to create a premise for developing green hydrogen.



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