Vietnam holds significant potential for wind energy development. (Photo: VietnamPlus) Hanoi (VNA) - Vietnam possesses abundant sunlight, wind, and seawater – the three primary ingredients of the green hydrogen production, which positions the country to become a green development hub of Asia, an insider has assessed.
The government-approved hydrogen energy strategy has opened up new space for the energy sector aligning with the country's sustainable and green development principles as well as global development trends.
The strategy is to develop a renewable-energy-based, cohesive, and modern ecosystem of related production, storage, transportation, distribution, domestic use, and export. This will help Vietnam ensure energy security and achieve national goals on climate change, green growth, and net-zero emissions by 2050, in line with her commitments to sustainable and just energy transition.
Talking to the press, Huynh Thi Kim Quyen, CEO of The Green Solutions – the investor of a green hydrogen production plant project in the Mekong Delta province of Tra Vinh, stated given heavy industrial corporations' increasing demand for carbon credits, the development of green energy sources presents a golden opportunity for enterprises to advance in this field.
Report: What advantages does Vietnam have for green hydrogen development?
Ms. Huynh Thi Kim Quyen: Vietnam's over 3,000 kilometres of coastline is a significant advantage for developing renewable energy. Therefore, we can be confident about becoming Asia's green development centre because Vietnam has sunlight, wind, and seawater and has all necessary elements for sustainable green hydrogen production.
Reporter: You emphasised Vietnam's advantages in becoming a hub of Asia in the field. Could you elaborate on this assertion?
Ms. Huynh Thi Kim Quyen: The Government, Ministry of Industry and Trade, other ministries and various sectors know that this is a substantial opportunity that not many countries worldwide could have.
For example, in Europe, wind is abundant but sunlight is lacking. Meanwhile, in the Middle East, despite abundant sunlight, there's insufficient wind. Vietnam has both, plus seawater, providing endless and cost-free resources for producing green hydrogen, which will become a global fuel source rather than being possessed by any single country.
This presents a significant chance, but turning chances into reality requires strong commitment from the Government, ministries, and sectors to establish unified standards and supportive policies for the development of green hydrogen.
Reporter: From green hydrogen production, how do you think Vietnamese enterprises will leverage opportunities regarding carbon credits?
Ms. Huynh Thi Kim Quyen: The greatest value of the production does not lie in how much investors or financial organisations invest and expect to gain as in the case of standard investment projects. Given global climate change trends, carbon credits will become an immeasurable value of a project, providing a secure and sustainable endorsement for its feasibility.
Therefore, with carbon credits expected from 2027-2028 onwards, both Vietnam and other countries are implementing policies serving their widespread application. Heavy industrial corporations, such as chemical and steel industries, must either pay environmental impact taxes or purchase carbon credits.
Huynh Thi Kim Quyen, CEO of The Green Solutions Group (Photo: VietnamPlus). Estimates suggest that for every tonne of ammonia produced, one tonne of CO2 emissions is reduced, equivalent to one carbon credit. In Europe, green carbon credits currently value around 75-85 EUR. In the years to come, heavy industrial corporations' increasing demand for carbon credits will offer a golden opportunity for enterprises.
Reporter: As a trailblazer in green hydrogen investment, how do you think technology, equipment, and human resources should be prepared to successfully implement projects in the field?
Ms. Huynh Thi Kim Quyen: The Green Resolutions spent two years researching green hydrogen before launching its project, extensively studying various technologies worldwide during the period.
Currently, the most commonly applied technology globally is alkaline water electrolysis. Our company has closely collaborated with top electrolysis technology suppliers. These groups are from Germany, Belgium, Denmark, and others, therefore researching and selecting a suitable technology for application in the Tra Vinh green hydro plant. In the process, opportunities came with challenges regarding policies, standards, technology, and human resources.
Despite available technology, costs remain high. It's a journey that requires a concerted effort to reduce production costs appropriately and to switch to a sustainable industry and green hydrogen development.
There aren't many experienced individuals in such a new area. However, as Minister of Industry and Trade Nguyen Hong Dien once said, cooperation with foreign agencies like the GIZ and USAID is essential to foster a new generation of knowledge in green hydrogen within this industry.
Reporter: From the green hydrogen project in Tra Vinh that your group is investing in, what support do you think businesses need in terms of investment procedures and capital sources?
Ms. Huynh Thi Kim Quyen: Currently, the term "green" is trending – green economy, green transportation, green fuel, and green finance. All leading banks worldwide and financial funds discuss green finance. Therefore, the Tra Vinh green hydrogen production project is a boon to luring green financial sources.
The construction of Vietnam’s first green hydrogen factory kicks off in the Mekong Delta province of Tra Vinh. (Photo: VNA) In reality, many major banks have approached our Tra Vinh green hydrogen project and are ready to fund it. This is a massive opportunity in the path toward achieving zero net emissions, where green fuel accompanies green finance in the transition to a green economy. This is a significant endeavor.
Currently, basic construction permits for the Tra Vinh green hydrogen plant have been obtained. The building of the facility will start in 2024, with technical steps being expedited. The entire construction is set to be completed by the end of 2026, with the first products expected in early 2027.
Reporter: Thank you./.
