South Korea’s SK Energy eyes hydrogen project in Can Tho

South Korea’s SK Energy Co., Ltd. plans to develop a hydrogen project in the Mekong Delta city of Can Tho, in line with Vietnam’s commitment to green growth, said Lee Dong Uk, a senior advisor at SK Energy.

At a Tuesday meeting with municipal authorities, Lee Dong Uk proposed Can Tho facilitates the company to survey local traffic infrastructure. Lee highlighted the city’s strength in hydrogen development, including its role as an economic hub of the Mekong Delta, airport, O Mon gas-fired power plants, among others.

He added that SK Energy aims to build stations servicing heavy trucks and buses in Can Tho, which can also provide electricity charging, hydrogen fueling, shopping, food & beverage services, and sport activities for drivers.

Jeong Seung Hwan, CEO of SK Vietnam, said such facilities would require a large space of 6,500-10,000 square meters and that optimal locations include near industrial parks and ports. He emphasized the facilities, in combination with hydrogen energy, would help the Mekong Delta city in its green growth efforts.

The executive also noted Vietnam aims to run buses and vehicles with clean energy by 2050 so SK Energy strives to cooperate with Can Tho in establishing parking spaces, as well as charging stations for both hydrogen and electric vehicles.

In reply, Nguyen Van Hong, Vice Mayor of Can Tho, lauded SK’s investment would fit the city’s development path and asked relevant authorities to accompany the South Korean firm in implementation.

Hong elaborated that Can Tho and the Mekong Delta, as the agricultural hub of Vietnam, can utilize hydrogen at refrigeration plants, seafood processing factories and cold storage facilities.

Previously, on July 18 this year and May 18 last year, SK Energy representatives and Can Tho authorities had meetings to discuss hydrogen cooperation.

At the online meeting in 2021, the two sides talked about opportunities in developing renewable energy, an LNG terminal, and hydrogen battery production.

SK Energy said it aimed to build a model of distinct and clean hydrogen production based on making use of the country's future LNG infrastructure and carbon capture and storage (CCS) technologies.

Can Tho authorities proposed SK Energy studies locating a project on blue hydrogen and hydrogen battery production in the city's Hung Phu and Thot Not industrial parks.

Hydrogen production facilities in Vietnam do not yet exist, but interest in developing them is growing rapidly, said Tony Foster, managing partner of Freshfields Bruckhaus Deringer's Vietnam offices.

The central province of Quang Tri is considering the establishment of a massive VND175,600 billion ($7.46 billion) green hydrogen center that will turn the central province into a renewable energy hub.

Ha Sy Dong, standing Vice Chairman of the province, had a working session on September 12 with representatives from the Power Engineering Consulting Joint Stock Company 2 (PECC2) and its partners on building the Hai Lang Green Hydrogen Center.

Hung Hai Group, a major Vietnamese business involving infrastructure development and renewable energy, is also eyeing building a battery plant and hydrogen generation factory in Chau Duc district, Ba Ria-Vung Tau province.

Last month, Vietnamese industrial engineering company Lilama signed an agreement with Germany's Thyssenkrupp Nucera to produce two large-scale water electrolysis standard modules for a green liquid hydrogen factory in the U.S.