HDF Energy inks MoU with PTSC to build hydrogen power plants

Vietnam's rapid economic growth has resulted in a considerable increase in energy demand over the past 10 years, with fossil fuels currently providing the majority.

In response to the rise, the Vietnamese government has made a considerable effort to promote renewable energy sources and has demonstrated a specific commitment to decarbonising its electrical infrastructure.

However, in some parts of the country, this has caused grid integration problems due to the intermittent nature of renewables.

PTSC, a subsidiary of the Vietnamese oil and gas group PetroVietnam, is a leading company providing technical services for offshore oil and gas, industrial plants, and renewable energy in Vietnam and across the region.

PTSC has partnered with HDF Energy whose Renewstable (power to power) and HyPower (gas to power) multi-megawatt hydrogen power plants can deliver firm, non-intermittent, and non-polluting power to the grid.

Under this MoU, the two parties will collaborate to develop, fund, and put HDF's multi-megawatt hydrogen power plant projects into operation.

In addition, HDF and PTSC will investigate how green hydrogen could be produced in Vietnam as well as in other regional markets like South Korea, Japan, and Singapore. They will focus mostly on offshore wind farms, which can be used to generate green hydrogen to decarbonise local industries.

HDF's director for Asia Mathieu Geze declared, “We are glad to collaborate with PTSC and explore synergies with the PetroVietnam group to develop green hydrogen projects in Vietnam. PTSC has demonstrated its technical leadership in managing complex projects in Vietnam and abroad. Combined with HDF Energy's experience in hydrogen projects, we can offer unique expertise to hydrogen off-takers. HDF Energy started addressing the Asian market in 2021 and this MoU with PTSC will accelerate our developments in the region.”

On the same note, PTSC President and CEO Le Manh Cuong stated, “Entering into this MoU is an important milestone for PTSC's strategic business plan, which includes investment in and the development of renewable energy projects. With HDF's proven hydrogen technology and expertise, I believe that PTSC and HDF together can promote green hydrogen projects in our country and contribute to the Vietnamese government's commitment to zero carbon emissions by 2050."

The goals of both companies are consistent with the PDP8, Vietnam's main energy planning instrument for the years 2021-2030, which outlines the contribution hydrogen could make to the nation's goal of achieving net-zero emissions.

When contemplating the growth of the hydrogen industry in Vietnam, it is necessary to examine the industry’s export focus towards key Asian markets.

The emerging hydrogen market is set to be very complex, and for Vietnam to become a producer and exporter of green hydrogen over the next five years, there will be huge challenges, but the potential upsides are vast.

Investors are ramping up the development of hydrogen to meet the rising energy demand in Vietnam.