Ha Noi, 8 June 2023 - The United Nations Development Programme (UNDP) and the Institute of Energy organized the workshop on the comprehensive assessment of green hydrogen production from solar and wind power sources and potential uses in Viet Nam, with a focus in the South-Central Coast and Southwest regions.

Viet Nam, one of the world's fastest-growing economies and recognizing the pressing threat of climate change and the need to reduce emissions, has made remarkable strides in renewable energy deployment. With a compound annual growth rate of 5.7% over this decade, the country has embarked on an ambitious path to sustainably meet its rising energy, sourcing approximately 47% of its power from renewable energy sources by 2050.

Green hydrogen has emerged as a robust solution in the global pursuit of a greener future. Its production, enabled by expanding renewable energy capacity and falling costs of solar and wind production, holds immense promise for developing countries like Viet Nam with high renewable energy potential and rapid growth in renewables. The applications of green hydrogen are vast, ranging from shipping and transportation to decarbonizing hard-to-abate industries such as steel and chemicals and blending it into existing natural gas networks for heating in buildings.

The International Partners Group, including G7, EU, Denmark and Norway, of Just Energy Transition Partnership (JETP) and Viet Nam, have identified green hydrogen production as a key priority in JETP Political Declaration. However, green hydrogen production and use is a new field for Viet Nam.  While the country has witnessed the preparation of several green hydrogen investment projects, there remains a need for a comprehensive regulatory framework and research, development on the technology for green hydrogen fuel development, and the potential consumption across various industries.

The assessment report presented three scenarios for GH2 production from renewable energy (RE) sources. It assessed the potential production capacity and levelized cost of hydrogen (LCOH). It also featured economic and statistical analysis based on the latest data on domestic and renewable electricity projections, current and future green hydrogen and ammonia demand estimates, and discussions on the national policy and legislative framework necessary for developing green hydrogen.

To address the potential for hydrogen production from water electrolysis in Viet Nam, Mr. Patrick Haverman, UNDP Deputy Resident Representative in Viet Nam highlighted, "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 sectors like transport and hard-to-abate industries such as steel and chemicals in Viet Nam. Secondly, the development of green hydrogen will require a clear policy and regulatory framework with concerted efforts by government, businesses, academia, and civil society to realize a transition from fossil fuel-derived feedstocks. Finally, developing the necessary infrastructure to produce, store, and distribute green hydrogen safely in Viet Nam will be crucial. Viet Nam is rapidly expanding its solar and wind energy capacity. However, it must also ensure that necessary electrolyzers are positioned at or near renewable energy facilities for any dedicated green hydrogen projects. Such hydrogen must be stored in a physical or material-based system, each with differing properties."

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

The workshop was an important contribution in advancing the nation's clean energy goals. Stakeholders, Government representatives, international and national industry experts, and researchers from academy and representatives from companies, attended this significant gathering and contributed to shaping Viet Nam's sustainable energy future.

For more information and media inquiries, please kindly contact:
Phan Huong Giang
UNDP CCE Media and Communication Analyst,
Email: phan.huong.giang@undp.org
Mobile: 0948466688