Experts believe that, despite its great potential, the production of low-emission hydrogen still faces numerous challenges, such as expensive technology and limited market demand. However, these very challenges open up many opportunities for businesses, especially those operating in the fields of oil, refining, and gas.
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 insights into the opportunities and challenges in this sector.
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 between 100,000 and 500,000 tons annually. By 2050, this figure will rise to 10–20 million tons. However, current global hydrogen production is only at 97 million tons, with low-emission hydrogen accounting for less than 1%.
Low-emission hydrogen is primarily produced through water electrolysis using electricity from renewable sources such as solar and wind energy or through carbon capture, utilization, and storage (CCUS) processes.
Mr. Minh pointed out that despite its potential, low-emission hydrogen production still faces significant challenges. These include high R&D costs, expensive technology, and limited market demand. He also emphasized that although the International Energy Agency (IEA) plans to finalize low-emission hydrogen standards by 2025, many businesses in the industry have not yet seized this opportunity.
Investing in Low-Emission Hydrogen: Challenges Also Present Opportunities for Businesses
Low-emission hydrogen production still faces numerous challenges / Illustration: Internet
However, these very challenges open up numerous opportunities for businesses. Mr. Minh said that technical and legal consulting firms could assist the government in establishing international standards for low-emission hydrogen. Furthermore, companies in the oil and chemical sectors could find opportunities through Power Development Plan VIII and the National Hydrogen Strategy.
The Chairman of the ASEAN Vietnam Hydrogen Club also noted that many countries are establishing standards for hydrogen, creating opportunities for Vietnamese businesses to enter international markets. He cited the European Union (EU) as an example, which is restricting the import of electrolysis equipment from China, potentially opening doors for domestic hydrogen equipment manufacturers.
He also mentioned opportunities in the semiconductor industry and the possibility of partnering with countries such as China and India to penetrate the EU and North American markets.
Additionally, the exploration of natural hydrogen is also drawing attention. Regions like Mali, France, and Texas have discovered natural hydrogen reserves, and Vietnam could also organize exploration to tap into this resource, particularly in areas with great potential, such as Phu Khanh, Cuu Long, and the Northwest.
Mr. Minh recommends that companies in the oil, refining, and gas sectors engage in low-emission hydrogen to not only seize these opportunities but also ensure sustainable energy development. This transformation not only brings economic benefits but also contributes to global emission reduction goals.
