On September 17, during the Vietnam-Japan Hydrogen Seminar 2024 held in Ho Chi Minh City, Mr. Nobuyuki Matsumoto, Chief Representative of JETRO Office in Ho Chi Minh City, stated that, similar to Vietnam, the Japanese government is committed to achieving carbon neutrality by 2050.
Government Support for Business Transformation
To achieve this goal, Japan has proactively expanded its non-carbon energy sources, replacing electricity in industries, consumption, and transportation with non-carbon electricity. In addition, Japan is promoting the use of hydrogen, ammonia, methane, and synthetic fuels for heat generation, alongside other carbon reduction initiatives.
Currently, the Japanese government has developed a green growth strategy since 2020, with hydrogen and ammonia being designated as key industries.
A green innovation plan worth roughly 2 trillion yen (equivalent to 13 billion USD) was established for 2021.
Additionally, the Green Transformation (GX) Promotion Law was enacted in May 2023 to encourage economic and social structural changes, driven by private investment.
The law aims to comprehensively and strategically promote the following three elements: First, reducing greenhouse gas emissions; second, ensuring stable energy supply; and third, changing industrial and social structures, including lifestyle and business operations.
Moreover, in May 2024, the Hydrogen Society Promotion Law was passed to strongly promote the adoption of hydrogen into societal practices.
The main objective of this program is to review the plans of companies looking to adopt and use hydrogen and to provide support for approved companies.
Japan's long-term strategy will focus on non-carbon electricity generation, aiming to apply hydrogen and ammonia technologies to thermal power plants.
A pilot project at a 1GW thermal power plant started in April and was completed in June this year. The hydrogen and ammonia combustion technology will be developed with the goal of commercialization by the 2030s, shared Mr. Nobuyuki Matsumoto about Japan's plans.
Vietnam's Hydrogen Energy Development Strategy
The seminar attracted investors and builders from Japan and Vietnam in the fields of infrastructure and energy, exchanging information about project development experiences as well as assessing the potential for hydrogen energy development in Vietnam. This helped capture opportunities to participate in the new energy trend in both the private and public sectors.
Mr. Le Ngoc Anh Minh, President of the Vietnam ASEAN Hydrogen Club (VAHC), said that in recent years, selling electricity from renewable energy projects such as wind and solar power has faced some difficulties.
With the support of Japan, VAHC was established in March 2023 and has had many activities supporting stakeholders in increasing understanding and interest in this energy source.
Members of the club include experts working in renewable energy, heavy industries, and energy market analysis.
According to Vietnam's Hydrogen Energy Development Strategy by 2030, with a vision to 2050, approved by the government, hydrogen energy development is linked to the overall objectives based on renewable energy.
By 2050, Vietnam aims to boost the application of green hydrogen energy and hydrogen-sourced fuels in all energy-consuming sectors to decarbonize the economy, making a significant contribution to achieving the goal of net-zero emissions by 2050.
Aligned with this strategy, the Vietnamese government has also introduced several incentives, including tax benefits, green financing, and land lease reductions for projects that meet hydrogen energy development standards.
According to the International Energy Agency (IEA), global demand for hydrogen and other fuels is expected to increase fivefold by 2050 compared to 2022. Applications will include low-emission steel production, local power generation, and transportation, such as cars, trucks, and power generation.
However, hydrogen prices are currently much higher than fossil fuels, making the role of the government crucial, along with the private sector and international allies.
