China’s Huadian to invest $440 mln for producing hydrogen, methanol in Vietnam

Huadian Group, a Chinese state-owned enterprise (SOE), aims to invest $440 million in Vietnam’s central province of Quang Tri for producing green hydrogen and methanol.

A Huadian delegation and its Vietnamese partner Minh Quang JSC presented the investment proposal to Quang Tri authorities Wednesday. The investment covers phase 1 of the project.

In March, Huadian had said it aimed to invest $2.39 billion for producing green hydrogen in the province.

Per the latest proposal, the Chinese giant plans to build a 265-MW wind farm and an 80-MW solar farm, along with a 30-MWh battery energy storage system (BESS), to serve the production of 12,000 tons of green hydrogen and 100,000 tons of methanol a year, respectively.

Huadian and its Vietnamese partner have already conducted a pre-feasibility study for the project, the Chinese firm said. The company also emphasized its experience in developing electricity, chemicals, natural resources and metallurgy projects in China.

Minh Quang JSC is the developer of solar power projects of over 400 MW in the Central Highlands province of Dak Nong.

Supporting the investment proposal, Le Quang Tung, Secretary of Quang Tri's Party Committee, asked provincial authorities to cooperate with the firm in completing administrative procedures and deploying the project soon.

He said Quang Tri had several advantages related to the project, including the current energy portfolio of 1,000 MW, including solar power, wind power and thermal power.

Meanwhile, per the national Power Development Plan VIII (PDP VIII) for 2021-2030, the province can develop an additional 600 MW in renewable energy, he added.

Huadian Group, a major energy SOE in China, has several investments in Vietnam including a 200 MW wind power plant in the Central Highlands province of Dak Lak; and the $2 billion, 1,320 MW Duyen Hai 2 thermal power plant in the southern province of Tra Vinh.