Leading corporations eye Vietnam's energy transition toward carbon neutrality

Among them were several global tech giants such as Google, Qualcomn, Nvidia, and SpaceX from the US; SK Group from the Republic of Korea; and Foxconn from Taiwan (China), reported Vietnam Television.

Electric vehicle charging stations were among new energy-related technologies which large corporations brought to this year’s innovation expo.

For an electric vehicle, the battery can be considered as the most important component. Batteries using high-tech tungsten materials with fast, safe charging speeds and 10 times more capacity than conventional batteries were introduced by Masan High-Tech Materials.

Masan High-Tech Materials is a global leader which provides advanced tungsten materials used in key industries such as electronics, chemical, automotive, aviation, and aerospace, as well as energy and pharmaceuticals. The corporation invested in Nyobolt to develop this battery line in 2022 in an effort to match the global trend of using clean fuels.

According to Craig Richard Bradshaw, managing director of Masan High-Tech Materials, tungsten is a popular metal used in heavy industry that was previously created by mining. In order to contribute to the nation’s green transition, the firm that has developed its own production facilities in Vietnam, Germany, Canada, and China is looking to invest approximately US$20 million in a tungsten recycling plant in the country.

Furthermore, SK group of the Republic of Korea is promoting its new energy strategy by acquiring a renewable energy firm in Vietnam for nearly US$40 million.

Suyeun Song, an executive of SK Group, the second largest corporation in the Republic of Korea, stated that the country is emerging as a regional manufacturing hub, a factor which has attracted global corporations to deploy investment plans in the Vietnamese market. Therefore, the demand for installing and using green energy such as wind power and solar power is huge, with SK not wanting to miss out on this chance.

For hydrogen, a clean alternative to methane, John Cockerill is one of the two largest investment corporations in the world. The group is planning to move all of its operations to the country, with an expected initial investment of up to US$100 million.

Vietnam has a long coastline which supports the development of renewable energy that can even be exported to regional countries, including Singapore, the RoK, and Japan, and john Cockerill is anticipated to reveal its investment plan in the country over the coming months, said Francois Mitchell, CEO of John Cockerill.

In order not to lose out to other rivals, Mitchell said that John Cockerill is now working alongside Vietnamese counterparts to create an electricity production chain from hydrogen, and hydrogen electrolyzers.

Hydrogen is considered to be a clean energy source that is indispensable in the energy structure of many countries seeking to achieve the goal of carbon neutrality by 2050. The European Union anticipates that hydrogen will likely account for 13% to 14% of its energy structure by 2050. The US has recently announced a hydrogen development strategy with the goal of reaching 10 million tonnes a year by 2030.

Addressing the National Green Hydrogen Summit 2023 held on October 28 in Hanoi, Minister of Planning and Investment Nguyen Chi Dung highlighted green hydrogen as a standout measure in the process of pursuing a “green future”.

Green hydrogen is therefore a promising solution that can enhance the value of renewable energy for developing countries, including Vietnam, and can be applied to various industries and in daily social life, said the Minister. He went on to affirm that the development of green hydrogen is essential in the country’s energy transition process.

Vietnam has already fully committed to reducing its greenhouse gas emissions to zero by 2050. It is in the process of implementing the Just Energy Transition Partnership deal it reached with the group of seven industrialised nations in an effort to achieve its carbon neutrality goal by 2050. The energy transition process is expected to create plenty of opportunities for foreign firms to invest in the country.