Vietnam's $9 Trillion Green Hydrogen Gamble by 2050
Hanoi, Thursday, 16 January 2025.
Vietnam eyes a green hydrogen surge, aiming to slash CO2 emissions. With a $9 trillion investment target by 2050, can it overcome high costs and infrastructure hurdles?
Vietnam’s Bold Green Hydrogen Vision
I’m excited to share Vietnam’s ambitious leap into the green hydrogen arena. In February 2024, the country launched a groundbreaking hydrogen strategy [1], targeting production of 100,000 to 500,000 tonnes annually by 2030, scaling up dramatically to 10-20 million tonnes by 2050 [1]. This initiative is part of a massive global transition requiring an estimated $9 trillion in investments by 2050 [1][5]. What makes this particularly interesting is Vietnam’s strategic position to leverage its abundant renewable energy resources for low-cost hydrogen production [1].
Pioneering Projects Taking Shape
The most exciting development I’ve been following is the Bình Định Province project [1]. Set to begin production in 2026, this VNĐ21 trillion ($827 million) initiative will start with a 450-500 MW capacity [1]. They’re not thinking small - the plan is to scale up to 2,000 MW by 2035, producing 160,000 tonnes annually [1]. What’s particularly impressive is the international collaboration, with technology coming from Siemens Energy and other G7 countries [1].
Challenges and Economic Realities
I have to be honest about the challenges ahead. By 2025, producing clean hydrogen in Vietnam will cost 1.3 to 2.1 times more than traditional grey hydrogen [1]. Currently, 99% of industrial hydrogen is ‘grey’, produced from methane [1]. The economics are tough - as Lê Ngọc Ánh Minh, President of the Vietnam ASEAN Hydrogen Club, points out, projects using renewable energy electrolysis aren’t financially viable yet due to high production costs [1]. However, there’s hope - Vietnam’s GDP is projected to grow at 6.5-8% in 2025 [4], potentially providing the economic momentum needed for this transition.
Future Outlook and International Context
Looking ahead, I’m seeing encouraging signs. By early 2025, the International Energy Agency will define low-emission hydrogen standards [1][5]. Vietnam isn’t alone in this journey - over 40 countries have launched hydrogen strategies, with the EU targeting 13-14% of its energy from green hydrogen by 2050 [1]. As Sébastien Doguet from Deloitte notes, this presents a unique opportunity for developing economies to diversify exports and decarbonize their economies [1]. With Vietnam’s potential $2.4 trillion investment opportunity in achieving net-zero goals by 2050 [2], the green hydrogen initiative could be a game-changer.