Potential market and impact of clean hydrogen development to 2050 in Vietnam

Abstract

Hydrogen plays an important role in the energy transition towards a zero-carbon economy. Blue hydrogen and green hydrogen are potential sources to replace fossil materials and fuels in the fields of refining - petrochemical, production of fertiliser, steel, cement, electricity, and transportation. The potential demand for clean hydrogen in these areas has been evaluated along with the impacts and benefits of hydrogen development. Accordingly, the potential hydrogen market can reach an output of 22 million tons/year by 2050. The development of hydrogen in the fields will create new markets with a total value of USD 100 billion in 2035 and USD 1,200 billion in 2050. In terms of the environment, replacing fossil materials and fuels with hydrogen reduces the total national CO2 emissions by 5.4%. In order to develop and complete the hydrogen value chain in Vietnam, it is necessary to set goals and roadmaps along with appropriate policies. Recognising the importance of hydrogen to the operation of the oil and gas and energy sectors in general, the Vietnam Oil and Gas Group (PVN) has developed a scientific research programme on the development of production, storage, transportation, distribution, and efficient use of hydrogen in Vietnam in the 2021 - 2025 period.

Green hydrogen economy: Prospects and policies in Vietnam

“…Current demand for hydrogen in vietnam At present, in Vietnam, grey hydrogen and brown hydrogen were produced and utilized primarily in oil refineries and fertilizer plants. A small amount of hydrogen was also used in steel, float glass, electronics, and food factories, accounting for about 0.5% of Vietnam's current total H 2 demand [19]. For fertilizer plants, H 2 was considered as the basic raw material for the synthesis of ammonia, which was then further converted to produce urea [20].…”

“…In particular, H 2 could be considered as a useful energy carrier that could be produced by converting excess renewable electricity. Although electricity produced from H 2 in Vietnam to date had a small output, the demand for H 2 for electricity generation in Vietnam would reach 2200 kta by 2050 [19]. In the steel industry, coal was used as a reducing agent to convert iron ore raw materials, which was considered as the main cause of carbon emissions in steelmaking with an emission level of about 122.5 million tons of CO 2 by 2025 and around 132.9 million tons of CO 2 by 2030, which comprised 17% of the total national emissions [23].…”

“…Therefore, H 2 was regarded as a lever that significantly decreased CO 2 emissions from cement industry. In the case of Vietnam, the demand for H 2 for the generation of cement could reach 2800 kta by 2050 [19].…”

“…Considering that H 2 would begin to be piloted for potential fields from 2025, the rate of H 2 consumption would reach 20%e30% by 2050, and the green H 2 market in Vietnam could reach around 22 million tons per year by 2050, which was equivalent to 2.8% of the world's H 2 demand [19]. The development of H 2 in Vietnam's key sectors, such as transportation, cement, electricity, steel, refining, petrochemicals, and fertilizer production, could decrease the total national CO 2 emission by 5.4% by 2030.…”

“…Accordingly, H 2 was considered as a solution to develop clean energy and was included in the draft National Energy Development Plan of Vietnam. Thus, opening up a potential market for H 2 development in Vietnam would be promising [19]. However, a roadmap and target for H 2 development must be developed in Vietnam, particularly for potential fields, such as the refining and petrochemical industry, nitrogen, steel, electricity, cement, and transportation.…”