Phu My Group plans 2,000 MW green hydrogen plant in central Vietnam

Vietnamese firm Phu My Group is eyeing a green hydrogen factory project in the central coastal province of Binh Dinh, with a capacity of 2,000 MW.

The project's capacity is 450-500 MW in the first phase (2026-2030) and 2,000 MW in the second phase (2030-2035), according to a report provincial authorities sent to the Ministry of Industry and Trade.

It will have an annual output of 20,000 tons and 160,000 tons of hydrogen in the first and second phases, respectively. The facility is set to utilize equipment and technology supplied by Siemens Energy and other G7 countries.

Provincial authorities said the project demands high initial investment capital due to high costs of electrolysis, offshore wind power, and green hydrogen, leading to weak competitiveness. They also noted that sales of green hydrogen are sluggish due to the low popularity of the product.

Therefore, Binh Dinh authorities suggested the ministry provide incentives to support green hydrogen production.

Huong Viet Investment Consultant Corporation, one of the three founders of Phu My Group, is studying a VND21,000 billion ($825 million) complex project including a hydrogen production facility, a general port, and an industrial park in the province.

The 820-hectare industrial park within the complex is proceeding with administrative procedures to soon receive an in-principle nod. It is set to focus on sectors of green hydrogen and green ammonia.

So far, Binh Dinh province has attracted 125 businesses in the chemical industry with total investment of VND2,115 billion ($83.1 million). Of these, 118 businesses are operational and seven are implementing their projects.

Local authorities said the province has yet to attract high-quality and large-scale chemical projects with high added value. It attributed the problems to large land lot requirements, complicated infrastructure, long distance from urban areas, and the lackluster experiences of the state management agencies regarding safety and environment.