Chairman of the ASEAN Vietnam Hydrogen Club: Investing in low-emission hydrogen: Challenges and opportunities for businesses
Author: Huy Tung, Petrotimes
Experts believe that despite its great potential, low-emission hydrogen production still faces many difficulties such as expensive equipment technology and limited market demand. However, these challenges open up many opportunities for businesses, especially those operating in the fields of oil and gas, petrochemical refining, gas, etc.
Mr. Le Ngoc Anh Minh, Chairman of the ASEAN Vietnam Hydrogen Club
Recently, at the Forum "Reshaping the global energy supply chain: Identifying trends, challenges and solutions for Vietnam", Mr. Le Ngoc Anh Minh, Chairman of the ASEAN Vietnam Hydrogen Club, shared the opportunities and challenges in this field.
According to Mr. Minh, Vietnam's hydrogen energy development strategy announced in February 2024 sets an ambitious target: by 2030, hydrogen production from renewable energy and carbon capture processes will reach 100,000 - 500,000 tons per year. By 2050, this figure will increase to 10 - 20 million tons. However, currently, global hydrogen production is only 97 million tons, of which low-emission hydrogen accounts for less than 1%.
Low-emission hydrogen is mainly produced through water electrolysis with electricity from renewable energy sources such as solar, wind or from carbon capture and storage (CCUS) processes.
Mr. Minh pointed out that, despite the great potential, low-emission hydrogen production still faces many difficulties. Barriers include high R&D costs, expensive equipment technology and limited market demand. He also emphasized that although the IEA plans to complete a set of low-emission hydrogen standards by 2025, many businesses in the industry have yet to take advantage of this opportunity.
Low-emission hydrogen production still faces many difficulties/Illustration photo: Internet
However, these challenges open up many opportunities for businesses. Mr. Minh said that technical and legal consulting firms can support the Government in developing international standards for low-emission hydrogen. Furthermore, businesses in the oil, gas and chemical sectors can also seek opportunities from the Power Plan VIII and the National Hydrogen Strategy.
The Chairman of the Vietnam ASEAN Hydrogen Club also pointed out that many countries have been establishing standards for hydrogen, creating opportunities for Vietnamese businesses to participate in the international market. Mr. Minh cited the example of the European Union (EU) restricting the import of electrolyzers from China, which could open up opportunities for domestic hydrogen equipment manufacturers.
He also mentioned opportunities in the semiconductor industry and the possibility of cooperation with countries such as China and India to penetrate the EU and North American markets.
In addition, opportunities for exploiting natural hydrogen are also being noticed. Regions such as Mali, France and Texas have discovered natural hydrogen mines and Vietnam can also organize exploration to exploit this resource, especially in potential areas such as Phu Khanh, Cuu Long and Tay Bac.
Mr. Minh recommended that businesses in the oil and gas, oil refining and gas industry need to participate in the low-emission hydrogen sector to not only take advantage of opportunities but also ensure sustainability in energy development. This transformation not only brings economic benefits but also contributes to the goal of reducing global emissions.
