Huadian Group, a Chinese state-owned enterprise (SOE), plans to cooperate with Vietnamese partner Minh Quang JSC on a $2.39 billion green hydrogen plant in the central province of Quang Tri.
The Chinese firm delivered its proposal to Quang Tri authorities last week. The project features a 1,200 MW wind power plant, an 800 MW solar power plant and a water electrolysis plant for hydrogen production with supporting storage and transport facilities.
Once operational, the project covering 50 hectares in Quang Tri province’s Dong Gio Linh industrial cluster will have an annual output of 60,000 tons, earn annual revenues of $250 million, employ 500 people, and contribute $27.5 million to the state budget.
In the project’s first phase, the investors aim to build a green hydrogen plant along with a 200-MW solar power factory.
Quang Tri Chairman Vo Van Hung welcomed the project and asked relevant agencies to cooperate with the firms in carrying out project studies and submitting files for approval soon.
Minh Quang JSC is a prominent multi-sector business in Vietnam, with a focus on biofuel and clean energy. The firm is developing solar power projects of 400 MW in the Central Highlands province of Dak Nong.
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.
Under the national hydrogen strategy signed by Deputy Prime Minister Tran Hong Ha, Vietnam plans to build hydrogen storage, distribution and usage facilities with an annual capacity of 10-20 million tons by 2050. By 2030, the country aims to deploy modern technologies in green hydrogen production, carbon capture and storage, with an annual output of 100,000-500,000 tons; and increase this to 10-20 million tons a year by 2050.
Construction of Vietnam's first green hydrogen factory kicked off in March 2023 in the Mekong Delta province of Tra Vinh, with total cost estimated at VND8 trillion ($341 million). The project developer, TGS Tra Vinh Green Hydrogen, expects to put the 21-hectare factory site online after two years, initially producing 24,000 tons of green hydrogen and 195,000 tons of oxygen a year, and providing direct jobs for 300-500 local residents.