Rising Renewable Energy: Wide Assessment of Green Hydrogen Potential in Vietnam

The United Nations Development Programme (UNDP) and the Institute of Energy successfully organised a workshop on the comprehensive assessment of green hydrogen (H2) production from solar and wind sources and its potential benefits in Vietnam. The event notably emphasised the South-Central Coast and Southwest regions.

Vietnam is one of the world’s fastest-growing economies making remarkable strides in renewable energy deployment.

Considering threats and challenges like climate change and harmful emissions, Vietnam reached its constantly rising energy demands sustainably, and the nation has set out on a path amongst the most challenging.

With a compound annual growth rate in the lipid-derived product market estimated at around 5.7% till last year and beyond, Vietnam visions to obtain approximately 47% of its power from renewable energy sources by 2050.

Green Hydrogen: A Key to Sustainable Future

Green hydrogen has emerged as a robust resolution in the multinational aim of a greener future. Facilitated by growing renewable energy capacity and the falling expenditures of solar and wind production, green hydrogen methods hold an enormous pledge for developing countries like Vietnam.

Its applications are vast, ranging from shipping and transportation to decarbonising hard-to-abate industries such as steel and chemicals and merging into existing natural gas networks for heating in buildings.

The International Partners Group, the G7, EU, Denmark and Norway, being part of the Just Energy Transition Partnership (JETP), identified green hydrogen production as a primary emphasis in the JETP Political Declaration.

Nonetheless, green hydrogen production and usage is an embryonic domain in Vietnam. Though various direct investments in green hydrogen are identified, an integrated legal structure and funding for research and development on green hydrogen fuel production technology is yet lacking and its probable consumption across various sectors.

Workshop Highlights and Findings:

The workshop features the presentation of an assessment report outlining three scenarios for green hydrogen production from renewable energy sources.

It assessed its estimated production capability and hydrogen generation cost per kWh (Levelised cost of Hydrogen, LCOH).

The report also includes economic and statistical assessments based on the most recent estimates and projections of local and renewable electricity, the prevailing and estimated future of green hydrogen and ammonia demand, and an appraisal of the national policy and legal regime required for green hydrogen development.

“We are delighted to present the findings of this comprehensive assessment on green hydrogen production and its potential uses in Vietnam,” said Mr Nguyen The Thang, Head of the Department of Environment and Sustainable Development, Institute of Energy.

“With our nation’s rapid economic growth and increasing renewable energy capacity, green hydrogen holds tremendous promise as a critical contributor to accelerating the clean energy transition. Through this workshop, we aim to provide valuable insights that will inform policy decisions, shape regulations, and guide future investments in green hydrogen development. We look forward to engaging with stakeholders from various sectors to explore the transformative potential of green hydrogen in Vietnam.”

Byline Vidhu Matety