Decision 165/QD-TTg 2024 approve Vietnam's Hydrogen Energy Development Strategy through 2030

DECISION

On approving Vietnam's Hydrogen Energy Development Strategy through 2030, with a vision toward 2050

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THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to Resolution No. 55-NQ/TW dated February 11, 2020 of the Political Bureau on orientation of Vietnam’s National Energy Development Strategy through 2030 with a vision toward 2045;

Pursuant to Resolution No. 01/NQ-CP dated January 6, 2023 of the Government on key tasks and solutions to implement the social-economic development plan, state budget estimate and improve the business environment and national competitiveness in 2023;

At the request of the Ministry of Industry and Trade in Report No. 7646/TTr-BCT dated November 1, 2023 and Report No. 9240/TTr-BCT dated December 27, 2023 on approving Vietnam's Hydrogen Energy Development Strategy through 2030, with a vision toward 2050.

DECIDES:

Article 1. To approve Vietnam's Hydrogen Energy Development Strategy through 2030, with a vision toward 2050 (hereinafter referred to as the Hydrogen Energy Strategy) with the following contents:

I. VIEWPOINTS OF DEVELOPMENT

1. Develop hydrogen energy on the basis of ensuring inheritance and consistency with the National Energy Development Strategy, the National Energy Master Plan for the period of 2021-2030, with a vision toward 2050 and other related Strategies and Plans, which are dynamic and open to adapt to the context and energy transition situation in the world.

2. Develop hydrogen energy under the value chain including production, storage, transportation, distribution and use, contributing to ensuring energy security and reducing greenhouse gas emissions, promoting the development of green economy, circular economy and hydrogen economy.

3. Develop hydrogen energy with a reasonable roadmap, associated with the energy transition roadmap in Vietnam and closely follow the world's technology development trends, especially technology using renewable energy in production of green hydrogen¹. Exploit and use economically, effectively and sustainably national resources to produce hydrogen energy to serve domestic and export needs on the basis of ensuring energy security, national defense and security, protection of the environment and ecology.

4. Encourage the use of hydrogen energy in all sectors of the economy to reduce greenhouse gas emissions. Focus on formulating appropriate policies and incentive mechanisms to promote the use of hydrogen energy in sectors with large greenhouse gas emissions such as electricity production, transportation, and industry.

5. Strengthen international cooperation to share experiences and knowledge in developing the hydrogen energy ecosystem. Effectively exploit the support of the international community (through organizations and cooperation programs such as COP², JETP³, AZEC⁴, etc.) to promote hydrogen energy development in Vietnam.

II. OBJECTIVES AND ORIENTATION OF DEVELOPMENT

1. General objectives

Develop Vietnam's hydrogen energy ecosystem based on renewable energy, including production, storage, transportation, distribution, domestic use and export with synchronous and modern infrastructure to contribute to ensuring energy security, implementing national target on climate change, green growth and net zero emissions by 2050 according to Vietnam's roadmap and commitment to sustainable, equitable and just energy transition.

2. Specific objectives and orientation for each sector

a) Hydrogen energy production

- Period through 2030:

+ Deploy and apply the world’s advanced technology in green hydrogen energy production in Vietnam.

+ Deploy and apply the world’s advanced technology in carbon capture/use (CCS/CCUS) associated with hydrogen energy production from other energy sources (such as coal, oil and gas, etc.).

+ Strive for hydrogen production capacity from the process of using renewable energy and other processes with carbon capture of about 100 - 500 thousand tons/year by 2030.

- Orientation toward 2050

+ Acquire and master advanced technology in green hydrogen energy production in Vietnam.

+ Acquire and master advanced technology in carbon capture/use (CCS/CCUS) associated with hydrogen energy production from other energy sources (such as coal, oil and gas, etc.).

+ Strive for hydrogen production capacity from the process of using renewable energy and other processes with carbon capture of about 10 - 20 million tons/year by 2050.

b) Use of hydrogen energy

- Period through 2030:

+ Gradually develop the hydrogen energy market in accordance with and in sync with the fuel conversion roadmap in energy-using sectors of the economy, including electricity production, transportation (road, railway, waterway and air transportation), industries (steel, chemical, oil refining and other industries), commercial and civil sectors.

+ Deploy and apply hydrogen-based energy testing in a number of sectors where it is impossible to take advantage of existing infrastructure in accordance with the ability to ensure system safety and reasonable price, specifically:

. Electricity production: Research and implement trial co-firing of gas with hydrogen and coal with ammonia at gas and coal power plants to prepare for the implementation of the fuel-to-hydrogen-based energy conversion roadmap.

. Transportation: Research and implement trial application of hydrogen energy for long-distance transportation and public vehicles.

. Industry: Research and implement trial use of green hydrogen energy to replace gray hydrogen in fertilizer production, petrochemical refining; trial use of hydrogen and hydrogen-based fuel in the production of blue steel, cement, etc. with low emissions.

- Orientation toward 2050

+ Promote the application of green hydrogen energy and hydrogen-based fuels in all energy use sectors to decarbonize the economy and make an important contribution to the target of net zero emissions by 2050, including:

. Electricity production: Make fuel-to-hydrogen conversion for gas and LNG power plants, fuel-to-ammonia conversion for coal power plants according to the National electricity development master plan for the period of 2021-2030, with a vision toward 2050.

. Industry: Make the transition to using hydrogen energy in fertilizer production, petrochemical refining, steel and cement for decarbonization in the industrial sector.

. Transportation: Make the transition to using hydrogen energy and hydrogen-based fuel for transportation vehicles in accordance with the green transformation roadmap of the transportation industry.

+ Form and develop a market for hydrogen-based energy consumption under the market mechanisms, healthy competition with other forms of energy.

+ Strive for the proportion of hydrogen energy and hydrogen-based fuel to reach about 10% of final energy consumption demand.

c) Storage, transportation and distribution of hydrogen energy

- Period through 2030:

+ Research and implement trial use of existing infrastructure of the energy industry to store, transport and distribute hydrogen energy in accordance with the ability to ensure system safety and reasonable price.

+ Research and pilot construction of specialized equipment production centers/establishments serving the transportation, storage and distribution of hydrogen energy.

+ Research and pilot construction of hydrogen energy distribution systems for the transportation sector on roads and areas with favorable conditions.

- Orientation toward 2050

+ Develop and improve the infrastructure system for hydrogen storage, distribution and use with a market scale of about 10 - 20 million tons/year.

+ Deploy, expand and improve hydrogen distribution systems for the transportation sector nationwide in accordance with the world’s general trend.

d) Hydrogen energy export

- Period through 2030:

Take advantage of abundant natural resources of renewable energy (wind, solar, etc.) and advantages of geographical location, encourage investment in green hydrogen energy production for export on the principle of ensuring energy security, national defense - security and economic efficiency.

- Orientation toward 2050

Form a comprehensive energy industry ecosystem based on renewable energy, new energy, green hydrogen energy, aiming to become a center of clean energy industry and export of renewable energy and green hydrogen energy to the region.

III. TASKS AND IMPLEMENTATION SOLUTIONS

1. About the mechanisms and policies

- Develop and supplement regulations on renewable energy development policies, including hydrogen energy sources, in the (amended) Electricity Law to create a solid, transparent and favorable legal foundation to create momentum for the sustainable development of new and renewable energy.

- Create a mechanism and legal corridor for enterprises in production and use of fossil energy to actively convert to producing and using hydrogen energy.

- Promulgate regulations on authority to decide investment policies for offshore wind power projects, hydrogen/ammonia production and export projects using renewable energy (solar power, offshore wind power, etc.).

- Develop and promulgate preferential mechanisms and policies (on taxes, charges, land, etc.) to attract investment in developing the hydrogen energy sector.

- Review, amend and supplement national standards and regulations in the hydrogen energy in accordance with international regulations and standards.

2. Investment and finance

- In the first phase, proactively research and invest in trial projects to produce clean hydrogen energy on a small scale, in accordance with the roadmap to start using hydrogen-based fuel at a reasonable price. On that basis, continue to invest in developing large-scale green hydrogen energy production projects in areas with potential advantages in renewable energy, close to consumers, convenience in export.

- Mobilize and diversify capital sources and forms of capital mobilization, effectively attract domestic and foreign capital sources for energy development, ensure national defense - security and competition in the energy market. Strengthen calling and effectively use international support commitments (COP, JETP, AZEC, etc.), green credit sources, climate credits, green bonds, etc.

- Diversify (state, private, public-private partnership...) investment forms for hydrogen-based energy projects. Promote the role of state-owned enterprises, while strongly attracting investment in developing the hydrogen energy industry from (domestic and foreign) non-state enterprises. Continue to negotiate, effectively use funding sources, support capital arrangement of international partners in the process of energy transition and towards net zero emissions of Vietnam.

3. Science and technology

- Timely update the world’s scientific and technological advances on new energy sources for electricity production, transportation, and industry.

- Strengthen research, application and transfer of hydrogen-based energy production technology and fuel conversion technology from coal and gas thermal power plants to biomass fuel, ammonia, hydrogen, etc.

- Create a mechanism to encourage domestic energy enterprises to increase investment in research and development; promote innovation in the hydrogen-based energy sector.

4. Training and development of human resources

- Develop and implement plans for training and developing human resources for key technology sectors, creating breakthroughs in the hydrogen-based energy industry.

- Strengthen cooperation and association with prestigious domestic and international training institutions, enlist the support of international organizations and partners in developing human resources in the hydrogen-based energy sector.

- Attach importance to vocational training so as to form a contingent of skilled technicians and operators fully capable of mastering and expertly handling modern technical equipment and technologies in the hydrogen energy sector.

- Adopt appropriate satisfactory treatment policies to attract domestic and overseas experts, scientists and high-quality human resources to work in the hydrogen energy sector.

- Take advantage of investment projects to be trained in and acquire new and modern technologies in the hydrogen-based energy sector.

5. Environmental protection and sustainable development

- Carry out vigorous energy transition from fossil fuels to hydrogen-based energy in order to reduce polluting and greenhouse gas emissions, thereby achieving the net-zero emissions target by 2050, environmental protection and sustainable development.

- Promote the application of new and modern scientific and technological achievements to make a rapid and vigorous transition to a low-carbon economy, circular economy, reduction of energy consumption and emissions, in the direction of satisfaction of requirements on carbon emissions per export product/goods unit and compliance with regulations on the carbon market.

- Deploy the construction of hydrogen-based energy projects and hydrogen-based energy infrastructure to ensure compliance with legal regulations on environmental protection, biodiversity, etc.; ensure safe and stable operation, thereby minimizing risks of, and losses and damage caused by climate change.

6. International cooperation

- Promote international cooperation in research and development of technology for production, storage, transportation, distribution and use of hydrogen energy.

- Conduct energy diplomacy, adhering to the principle of flexibility, effectiveness, equality, and mutual benefit. Take the initiative in building strategic partnerships in order to realize targets in the long and short term in production, use, import and export of hydrogen-based energy.

- Actively and effectively implement the international commitments (COP, JETP, AZEC, etc.) with international partners, taking full advantage of the support of international partners in technology transfer, administration, human resource training and financial provision.

7. Communication

- Propagate and popularize the necessity and benefits of developing clean energy in general and hydrogen energy in particular with the hydrogen value chain in Vietnam's green growth economy.

- Encourage organizations and individuals to coordinate with state agencies in organizing propaganda and educational projects and programs to raise awareness of the benefits of the hydrogen economy and the State's guidelines and policies in the clean energy sector to the entire society.

Article 2. Implementation organization

1. The Ministry of Industry and Trade shall:

- Assume the prime responsibility for, and coordinate with relevant ministries, sectors and localities in implementing this Strategy.

- Organize propaganda and dissemination of the content of this Strategy to organizations and individuals to effectively implement the Strategy.

- Assume the prime responsibility for, and coordinate with relevant ministries, sectors and agencies to review, supplement and complete legal documents on hydrogen-based energy according to regulations to facilitate the development of hydrogen-based energy, encouraging consumers to convert technology to using hydrogen-based energy.

- Monitor and urge the implementation of hydrogen-based energy projects in accordance with the state management functions and tasks of the Ministry of Industry and Trade.

- Coordinate with the Ministry of Planning and Investment to develop preferential mechanisms and policies to promote the development of the hydrogen energy industry.

2. The Ministry of Science and Technology shall:

- Develop a national science and technology program to promote research activities on hydrogen production, storage, distribution and use technology; in which the focus is on clean hydrogen production.

- Assume the prime responsibility for, and coordinate with relevant ministries, sectors and agencies to review, amend, develop and supplement national standards and regulations in the field of hydrogen production, use, storage, transportation and carbon capture/use (CCS/CCUS) in accordance with international regulations and standards.

3. The Ministry of Planning and Investment shall:

- Assume the prime responsibility for, and coordinate with relevant ministries, branches and agencies to develop preferential mechanisms and policies to attract investment and promote the development of the hydrogen energy industry.

- Research and propose competent authorities to promulgate regulations on the authority to decide investment policies for offshore wind power projects, hydrogen/ammonia production projects using offshore wind power, offshore wind power export projects.

4. The Ministry of Natural Resources and Environment shall:

- Assume the prime responsibility for, and coordinate with relevant ministries, sectors and agencies to implement tasks under climate change prevention programs; reduce greenhouse gas emissions with the support and coordination of international cooperation organizations and programs (COP, JETP, AZEC, etc.).

- Coordinate with relevant ministries, sectors and agencies, according to the assigned functions and tasks, to effectively implement this Strategy.

5. The Ministry of Transport shall:

- Assume the prime responsibility for the development of policy mechanisms to encourage the use of green vehicles and green energy, including hydrogen fuel for vehicles, equipment, and green transportation infrastructure.

- Coordinate with relevant ministries, sectors and agencies, according to the assigned functions and tasks, to effectively implement this Strategy.

6. The Ministry of Education and Training shall:

Assume the prime responsibility for the development of a national program on training high-quality human resources for the new energy industry in general and hydrogen energy in particular.

7. The ministries, sectors and the Commission for the Management of State Capital at Enterprises shall:

Fully perform functions, tasks, and powers to promptly implement the viewpoints, objectives, directions, and solutions of this Strategy; proactively propose mechanisms, policies, and solutions to remove obstacles to effectively implement the objectives of the Strategy, ensure consistency and synchronization with the implementation of the 10-year socio-economic development strategy in the period of 2021-2030, socio-economic development plans of each sector and locality.

8. The People's Committees of centrally-run cities and provinces shall:

Organize the selection of project owners for projects related to hydrogen energy production, allocate land for the development of energy production facilities in accordance with law, with the priority given to land allocation for energy production projects under the Master Plan; assume the prime responsibility for, and closely coordinate with project owners in, conducting ground clearance, compensation, population relocation and resettlement for hydrogen-based energy projects under regulations.

9. The corporations and enterprises in the energy sector shall:

Proactively build and adjust development strategies and plans of corporations and enterprises in accordance with the Hydrogen Energy Strategy; increase mobilization of capital according to regulations from domestic and foreign organizations to implement investment projects, especially new energy projects.

a) The Vietnam Electricity shall:

- Develop a plan to convert and mix hydrogen fuel with fuel from coal and gas thermal power plants of the Vietnam Electricity.

- Take advantage of available experience and human resources in improving technology and improving fuel efficiency of thermal power plants associated with hydrogen energy.

b) Vietnam Oil and Gas Group shall:

- Develop fuel conversion and mixing plans for coal and gas thermal power plants of Vietnam Oil and Gas Group.

- Take advantage of available experience and human resources in designing, manufacturing, and operating oil and gas processing works and marine works as well as take advantage of available infrastructure to implement the following tasks:

+ Research and apply technologies in the field of carbon capture/use (CCS/CCUS) associated with clean hydrogen production.

+ Research and utilize existing infrastructure (storage, natural gas pipeline systems, etc.) that can be converted for application in the hydrogen energy sector.

- Actively seek and build cooperative relationships with international partners with strengths in hydrogen production technology to cooperate and receive technology transfer to implement projects in Vietnam.

c) Vietnam National Coal and Mineral Industries Group shall:

- Develop a plan to convert and mix hydrogen fuel with fuel from coal and gas thermal power plants of Vietnam National Coal and Mineral Industries Group.

- Research and apply coal gasification technology in suitable coal storage areas, using carbon capture/utilization (CCS/CCUS) technologies associated with the hydrogen production process.

d) Vietnam National Petroleum Group shall:

- Research to renovate and invest in infrastructure such as import-export wharves, storage tanks, export stations, waterway and road hydrogen transport vehicles, etc. to meet import and export demand and domestic demand.

- Take advantage of available experience and human resources in designing and manufacturing specialized equipment for storage, transportation and distribution of hydrogen.

- Participate in trial projects to produce, store, transport, distribute, import and export hydrogen, and produce specialized equipment to store and distribute hydrogen.

dd) Vietnam National Chemical Group shall

- Research and apply green hydrogen production technology to serve energy needs and other industries and sectors.

- Promote research on conversion to use of clean hydrogen sources, clean ammonia, etc. in the chemical industry.

e) Other energy enterprises shall

Organize and specifically implement the tasks and solutions in this Strategy according to the authority and functions specified in their charters and provisions of law.

Article 3. This Decision takes effect from the date of its signing.

Article 4. The ministers, the heads of the ministerial-level agencies, the heads of government-attached agencies and the chairpersons of the People’s Committees of the centrally-run cities and provinces; the chairpersons of Members’ Councils and directors general of the Vietnam Electricity, Vietnam Oil and Gas Group, Vietnam National Petroleum Group, Vietnam National Coal-Mineral Industries Holding Corporation Limited and related agencies shall implement this Decision./.

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¹ Green hydrogen means hydrogen produced by water electrolysis technology using electricity from renewable energy, without emissions of CO₂.

² Parties to the United Nations Framework Convention on Climate Change.

³ Just Energy Transition Partnership (JETP).

⁴ Asia Zero Emission Community (AZEC).