As part of the Federal Ministry of Economics and Climate Protection (BMWK) working trip to Vietnam in February 2023, the GIZ Energy Support Program (ESP) coordinated a series of seminars on the topic of energy efficiency hydrogen development on the Vietnamese market.

Specifically, seminars with the following owners took place on March 21 and 22: “Cooperation between Vietnamese and German companies in the field of energy efficiency to overcome market barriers”; “Opportunities and Challenges for Hydrogen Industry Development in Vietnam”.

YOU NEED A METHOD TO ENCOURAGE ELECTRICITY SAVINGS AND EFFECTIVE USE

According to the German Society for Development Cooperation (GIZ), energy has been one of the priority areas of German government cooperation in Vietnam since 2013. The German Development Cooperation (GIZ) Energy Promotion Program has supported the implementation of many projects in specific sectors of the energy sector in Vietnam to contribute to the greenhouse gas emission reduction strategy and Vietnam’s green growth strategy.

At the COP 26 conference, Vietnam made extensive commitments on climate action, including a goal to reach zero (net-zero) emissions by 2020. According to the strategic direction of national energy development, Vietnam contributes by 2030, with a vision by 2045. The target of expanding renewable energy (including hydropower) in the total primary energy supply will reach about 15-20% by 2030 and 25-30% by 2045.

Also, compared to the normal development scenario, the ratio of energy saving to total final energy consumption will reach about 7% in 2030 and about 14% in 2045.

At the conference, experts said: Vietnam’s electricity and energy prices are still low, which makes people’s and businesses’ energy consumption not really economical, still very wasteful. Meanwhile, the energy transition in Vietnam must mention energy efficiency as an energy source that can be exploited and exchanged, such as coal, oil, natural gas and renewable energy.

Experts reiterate that energy saving is always a country’s “first fuel”, saying that industrial manufacturing enterprises need to invest in technology transformation from energy-consuming machines and equipment to make machines and equipment with a large amount of electricity into machines with higher electricity efficiency and the Reduce the amount of electricity but give a higher production capacity of goods.

In Vietnam, the banking system also does not have a preferential loan mechanism for technology conversion to use energy efficiently. The potential for large annual energy savings can be realized through industrial modernization investments, but very few business leaders seek bank loans to invest in these investments. At the workshop, delegates also said there was a need to help companies to be equipped with knowledge and skills to have energy efficient solutions.

GREEN HYDROGEN ELECTRICS – THE SOLUTION OF THE FUTURE

Energy industry experts say one fuel is gaining attention and is likely to be the most versatile fuel of the future: hydrogen energy.

Hydrogen is the lightest and most abundant element in the universe. Pure molecular hydrogen is quite rare on Earth, but it is all around us in the form of the most visible compound, water (H2O). Electrolysis, which splits water molecules into hydrogen and oxygen, is often used to produce hydrogen. The method of generating electricity from hydrogen is just the reverse reaction of the electrolysis of water.

The great thing about generating electricity from hydrogen is that there are absolutely no CO2 emissions, which is a clean and environmentally friendly process. Thanks to advances in science and technology, green hydrogen and its derivatives can be widely used in industries where emissions are difficult to reduce, such as oil and gas, chemical, aviation, marine or industrial engineering, steel industry and energy industry.

Hydrogen can be used to power everything from ships to spacecraft, as well as office buildings, transportation hubs, buses and cars. Since hydrogen can be stored in the form of an electric battery, it can be easily transported to where it is needed.

At present, many countries around the world have developed strategies for the green hydrogen industry and set concrete goals in the medium and long term. In particular, some countries like Japan, Korea, Germany and EU countries also have plans to import hydrogen from neighboring countries and in the region.

According to Mr. Vo Thanh Tung, GIZ Energy Support Program project expert, renewable energy technologies such as wind power and solar power have developed strongly in recent years and open up new opportunities to boost the development of green hydrogen industry. There are times when the electricity produced by wind and solar power plants is too large for the load demand, then the excess electricity can be used to produce hydrogen. This is a way to store excess renewable energy to avoid grid congestion and possible capacity redundancies that waste national resources.

In Vietnam, the Power Master Plan 8 formulates the goal of using green hydrogen and green ammonia to generate electricity by partially mixing it with natural gas or coal in gas and coal-fired power plants in the future in order to reduce CO2 emissions.

Mr. Tung said that although it is seen as a solution to help Vietnam achieve the goal of zero carbon emissions (Net Zero) by 2050, the green hydrogen industry faces difficulties and challenges due to high production costs. resulting in the price of this fuel being extremely expensive.

Technology, human resources and finance are the challenges facing Vietnam in hydrogen energy conversion. In addition, the current development of storage, transport and distribution infrastructure is still very limited. Addressing this problem requires a master plan and a coordination mechanism between governments, industry and national and international investors. The state must have appropriate mechanisms and policies in place to encourage power producers to switch to using green hydrogen.

Experts from GIZ recommend that the Vietnamese government must have a clear strategy, a roadmap and short- and long-term goals, as well as appropriate mechanisms and guidelines to encourage domestic and international investors to invest in green hydrogen production and domestic To develop hydrogen market and export to international market.