Vietnam is targeting an annual production of 100,000-500,000 metric tons of hydrogen by 2030 as part of its energy transition endeavors, as outlined in the country’s recently adopted hydrogen development strategy.
According to a government document scrutinized by Reuters, this output is projected to increase to 10-20 million tons by 2050, encompassing green hydrogen.
The production, distribution, and utilization of hydrogen are envisioned to align with the country’s objectives concerning climate change, green growth, and achieving net-zero emissions by 2050, as highlighted in the document.
Hydrogen is deemed “green” when extracted from water via electrolysis powered by renewable energy sources, playing a crucial role in industrial decarbonization, albeit the technology remains expensive and in early stages of development.
By 2030, the hydrogen output is slated to partially supplant natural gas and coal in power plants, with hydrogen also earmarked for applications in transportation, fertilizer, steel, and cement production.
By 2050, hydrogen is expected to contribute to 10% of the country’s electricity generation.
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). This financing initiative comprises equity investments, grants, and concessional loans from members of the Group of Seven (G7), multilateral banks, and private lenders.
