Mr. Doan Ngoc Duong, Deputy Director General of the Institute of Energy

Distinguished representatives from ministries, institutions, businesses, and development partners

Ladies and Gentlemen,

Xin chào and good morning!

It is my deeply humbling to once again celebrate 45 incredible years of partnership between Vietnam and UNDP, celebrating the progress made by central and local governments, academia, development partners, civil society and business. In the same spirit, the Institute of Energy is appreciated for its steadfast professionalism and engagement throughout its partnership with the UNDP, whose shared efforts bring all of us here today.

On behalf of UNDP, it is also my great honour to welcome you both in person and virtually to the final technical meeting to discuss critical findings regarding the potential impacts of green hydrogen production from solar and wind power sources in Vietnam and the energy medium’s potential uses.

Among the world’s fastest growing economies, Viet Nam is a strong emerging economy whose power generation is expected to grow rapidly to meet rising energy demand, estimated to grow at a compound annual growth rate of 5.7% over this decade. As a result, energy and land use systems are the largest contributor of emissions, estimated to currently represent account for about 70% of the Viet Nam’s total emissions, from industry, transport, and the power sector. Though forecast to be a decreasing share, much of this energy is expected to continue to rely on imported coal and oil through 2030.  

Having recognized the serious threat and impacts of climate change and significant contribution of the energy sector, Viet Nam has made significant strides in renewable energy deployment, quadrupling solar and wind capacity since 2021, and has prioritized enhancing its grid infrastructure. These efforts have been bolstered by a Just Energy Transition Partnership (JETP) agreement which will see Vietnam limit its peak coal capacity to 30.2 GW from an initially planned 37 GW, peak emissions 5 years earlier than planned by 2030, and source approximately 47% of its power from renewable energy.

The Government of Viet Nam is applauded for its role at COP26 as well, having set a commitment to reach a net-zero emissions target by 2050, set out a detailed implementation plan in its Power Development Plan 8 (PDP 8), and set a vision to move towards the adoption of biomass, ammonia, and hydrogen.

Globally, the production of green hydrogen is garnering attention, as the energy carrier’s increasing prominence can be enabled by expanding renewable energy capacity as well as the falling costs of solar and wind production. Improving electrolyser technologies and falling renewable energy costs are poised to make green hydrogen cost competitive by 2030. Crucially, countries with high renewable energy potential and rapid growth of renewables such as Viet Nam, could benefit. Green hydrogen has broad application uses, which include but are not limited to shipping and transportation, decarbonization of hard-to-abate industries such as steel and chemicals, as well as heating through blending into existing natural gas networks in buildings.

Green hydrogen production and use is a new field for Viet Nam. Though several green hydrogen investment projects have been proposed and prepared for construction, there is not formalized regulatory framework and very little research on the potential capacity of the green hydrogen fuel development or consumption among potential user industries.

Accordingly, this study assesses the potential role of green hydrogen production from solar and wind generated electricity as feedstocks, the of use green hydrogen as a decarbonization enabler, and its potential role in accelerating the clean energy transition in Viet Nam.

Preliminary findings include economic and statistical analysis using the most up-to-date data on domestic electricity and renewable electricity projections, estimates to current and future green hydrogen and ammonia demand, and a discussion on the national policy and legislative framework for green hydrogen development. Our colleagues and expert team will shortly share a more detailed set of findings thus far, including key considerations for Viet Nam.

To address the potential for hydrogen production from water electrolysis in Viet Nam, I would like to highlight three key elements for discussion during the meeting:

Firstly, research and development are crucial to determining the potential use cases, decarbonization potential, improving the efficiency, and reducing the cost of green hydrogen production technologies, particularly required for green hydrogen and green ammonia use in other sector like transport and hard-to-abate industries such as steel and chemicals in Viet Nam. Low carbon hydrogen is expected to constitute about 7% of global final energy demand by 2050, at least 211 Megatonnes (Mt). For Vietnam to be able to be able to capture some of this demand, one of its crucial first steps will involve the engagement of national research institutes, scientific organizations, technology related public-private research partnerships, and cooperative R&D agreements with other nations to support mutual skills development. For Vietnam, this will mean identifying and implementing scientific and technological research across the national hydrogen value chain, strengthening the relationship between domestic research institutions with foreign R&D partners, detailed research in the development of hydrogen applications among identified priority industries, and direct investments in gradually improving the capacity of technical research activities to facilitate the ability of Vietnam to catch up with leading actors.

Secondly, the development of green hydrogen will require a clear policy and regulatory framework with concerted efforts on the part of government, businesses, academia, and civil society to realize a transition from fossil fuel derived feedstocks. Currently, less than 1 percent of hydrogen use is derived from renewable energy sources. This presents a significant challenge that will require the concerted coordination of government to bring together stakeholders who can, together, map out a cost-effective transition within the industry, transport, and power sectors – key emissions contributors. It is recommended the government explores the development of a national target and programme of low-carbon hydrogen value chains which outlines, among other considerations, infrastructure, costs, human resources, potential applications, and a legislative roadmap, with high level considerations on potential standards, regulation, and trade rules to provide further assurance to the business community.

Finally, the development of necessary infrastructure to produce, store, and distribute green hydrogen safely in Vietnam will be crucial. Vietnam is making rapid progress expanding its solar and wind energy capacity but must also ensure that necessary electrolyzers are positioned at or near renewable energy facilities for any dedicated green hydrogen projects. Such hydrogen would need to be stored in a physical or-material based system, each with differing properties. Additionally, the transportation and distribution of green hydrogen requires pressurization and delivery either as a compressed gas or liquid among infrastructure such as storage tanks, tube trailers, dedicated shipping vessels, and refuelling stations.

Ladies and Gentlemen

We look forward to the open and informative discussion for feasible recommendations that would be made for Viet Nam to realise these green hydrogen potential as we move towards a net-zero emission future.

Wish you all with good health and success!

Thank you! Xin cảm ơn!