Ninh Thuan aims to form an energy center producing hydrogen

With its advantages in renewable energy, Ninh Thuan will be an attractive destination for investors to explore investment opportunities in hydrogen production.

According to Decision No. 165/QD-TTg approving Vietnam's Hydrogen Energy Development Strategy, by 2030, hydrogen production capacity from renewable energy and other processes with carbon capture will reach 100,000 - 500,000 tons/year (about 10 - 20 million tons/year by 2050). Mr. Dang Hai Anh, Head of the Petroleum Transportation and Processing Group, Department of Petroleum and Coal ( Ministry of Industry and Trade ), informed that this strategy is being gradually realized by localities and enterprises.

Along with that, the Ministry of Industry and Trade has advised the Government to issue the Electricity Plan VIII, which specifically identifies the roadmap and progress of converting raw materials; converting to ammonia of coal-fired thermal power plants, converting to hydrogen of gas-fired power plants. This means that Vietnam must convert fossil fuels to ammonia and green hydrogen.

At the same time, in the Plan for Implementation of Vietnam's National Energy Development Strategy, developing renewable energy to produce hydrogen and ammonia is identified as a top priority.

Ninh Thuan has favorable conditions to develop into a hydrogen production energy center. First is the planning advantage. According to Decision No. 1319/QD-TTg of the Prime Minister approving the Ninh Thuan Provincial Planning for the period 2021 - 2030, with a vision to 2050, renewable energy is identified as a development pillar and a breakthrough of Ninh Thuan province.

In addition, the decision approving the Plan for implementing the Power Plan VIII determined that renewable energy is a development strategy, moving towards hydrogen energy production. In particular, the whole country has 3 centers, 3 hydrogen energy plants, producing from 500 to 1 million tons/year; the Central region alone has 1 factory with an output of 200,000 - 400,000 tons/year.

“With the determination of the entire political system, we hope that Ninh Thuan will become a major renewable energy center, leading the country, moving towards meeting the demand for hydrogen production in the coming time,” Mr. Trinh Minh Hoang, Vice Chairman of Ninh Thuan Provincial People's Committee, believes.

According to Mr. Nguyen Tam Tien, General Director of Trung Nam Group, the group is researching the Green Energy Project Complex model in Ninh Thuan province with a solar power plant (2,150 MW), an offshore wind power plant (8,000 MW), a pumped storage hydropower plant (PSHP, 1,200 MW) and a battery storage system (BESS, 200 MWh). With a total investment of VND30,000 billion, the project has an expected green hydrogen capacity of 824,400 tons/year by 2050.

Regarding the reason for choosing Ninh Thuan to implement the complex, the General Director of Trung Nam Group affirmed, "In Vietnam, only Ninh Thuan province can meet the requirements". Accordingly, Ninh Thuan meets the requirements in terms of demand, solar radiation, wind power and pumped storage hydropower.

Ninh Thuan province leaders acknowledged that although the locality is considered one of the provinces with great potential and opportunities from renewable energy such as wind energy, solar energy that does not emit carbon to produce green hydrogen (considered a sustainable technological solution), "it takes a long time and a large amount of capital to develop the market". The General Director of Trung Nam Group also frankly shared the fact that hydrogen production in Vietnam faces the problem of extremely high costs in the production stage.

Specifically, to produce 1 million tons of hydrogen, it takes about 30 billion USD, so to achieve an output of 20 million tons (according to Vietnam's Hydrogen Development Strategy), it will take 600 billion USD. Although he admits that, up to now, Trung Nam Group is one of the number 1 enterprises in the field of renewable energy in Vietnam, Mr. Tien admits that the figure of 600 billion USD for the Group is "impossible". Therefore, it is necessary to have an association including government agencies, green finance support units, and Vietnamese enterprises to participate in developing specific strategies and plans.

Source: https://baodautu.vn/ninh-thuan-huong-toi-hinh-thanh-trung-tam-nang-luong-san-xuat-hydrogen-d215494.html