Vietnamese private renewable energy developer TGS, which is building the country’s first green hydrogen factory, has signed a purchase agreement with Hydrexia Malaysia as part of their strategic partnership agreed in May.
Under the agreement, announced on Tuesday, Hydrexia will supply units of its hydrogen refueling stations to TGS through 2023 and beyond. Hydrexia will be responsible for designing, deploying, and maintaining the stations for TGS. In addition, Hydrexia will also supply units of hydrogen fuel cell buses to TGS.
The duo will also continue to work together to explore other hydrogen business opportunities in the Vietnamese market.
TGS started construction of the first Vietnamese hydrogen plant in March, located in the Mekong Delta province of Tra Vinh.
The project will cost around $341 million to build. TGS expects to put the 21-hectare factory 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.
Hydrexia (Malaysia) is an international arm of Hydrexia, an Australian company specializing in solid-state hydrogen storage equipment.
“Hydrexia will strive to deliver the best hydrogen solutions for our partner TGS," George Gan, CEO of Hydrexia for Southeast Asia, said on Tuesday. "I believe there are many other areas where Hydrexia can work with TGS to expand the horizons of our partnership going forward.”
Winnie Huynh, founder and CEO of TGS, said: “We trust that this partnership will benefit both companies and bring substantial value to developing the hydrogen market in Vietnam.”
Vietnam is seeking to reach carbon neutrality by 2050. The clean energy transition includes promoting the development of renewable energy sources like solar and wind power, biomass, and hydrogen.
For the Just Energy Transition Partnership, or JETP, in Vietnam, $15.5 billion was committed last December by wealthy countries and international donors in the next three to five years. Under this new funding model, public and private financing will be mobilized to catalyze the decarbonization of the country’s power sector and facilitate its energy transition.
Hydrexia has grown its business presence to various global markets including Australia, Singapore, Malaysia, Thailand, Vietnam, and the U.S.