Along with the policies of the central and local governments, many corporations and foreign direct investment (FDI) enterprises have been and are accompanying Ninh Thuan to establish the first Net-Zero industrial park in Vietnam.
Technology as a breakthrough mechanism
Within the framework of the conference announcing the planning of Ninh Thuan province for the period 2021-2030, with a vision to 2050, Ninh Thuan has identified five industry clusters for breakthroughs, including: energy and renewable energy; high-quality tourism; processing and manufacturing industry; high-tech agriculture; construction and real estate business. Additionally, two new growth drivers are the marine economy and urban economy.
Alongside, Ninh Thuan has identified the southern key economic region as a new growth pole, an important driver to utilize the province’s potentials and advantages in seaports, inland ports, and logistics service centers, industrial parks, urban areas, and tourism, aiming to meet the conditions for establishing a coastal economic zone of the country by 2025.
Mr. Pham Van Hau, Standing Deputy Secretary of the Ninh Thuan Provincial Party Committee, stated that according to the plan up to year 2030, onshore wind power in Ninh Thuan has the potential to develop more than 1,429 MW, coastal wind power about 4,380 MW, offshore wind power about 21,000 MW; solar power has the potential to develop about 8,448 MW; and LNG power has the potential to develop 6,000 MW, by 2030 developing 1,500 MW. At the same time, the resolution of the 14th Provincial Party Congress of Ninh Thuan, term 2020-2025, set a goal that by 2025, Ninh Thuan will be one of the country’s centers for renewable energy and clean energy.
Based on these policies, the Ninh Thuan Provincial Party Committee has issued resolutions showing determination in leading and directing to effectively exploit and promote the province’s potentials and strengths in the field of renewable energy. According to the Institute of Strategy and Policy for Industry and Trade, Ministry of Industry and Trade, Ninh Thuan has great potential for renewable energy with a maximum development capacity of about 13,000 MW of wind power and more than 8,000 MW of solar power. The province has 14 potential wind zones with fairly constant wind throughout the year, the average wind speed at a height of 6.5 m reaches 9.6 m/s. For solar energy, the average annual sunshine hours range from 2,600 – 2,800 hours. The total average solar radiation is 5,221 kWh/m2/year, higher than the national average.
The national power development plan for the period 2021-2030, with a vision to 2050 (Power Plan VIII) and the hydrogen energy development strategy of Vietnam until 2030, with a vision to 2050, has determined to develop hydrogen production focusing on technologies that ensure zero emissions or low carbon emissions. Hydrogen produced from these technologies is considered clean hydrogen and is identified as a breakthrough technology to achieve carbon neutrality goals by 2050.
Potential for Developing “Net-Zero” Industrial Clusters
Mr. Dang Ha Anh, Head of Oil and Gas Transportation and Processing Group, Department of Oil and Gas and Coal (Ministry of Industry and Trade), said that the Prime Minister has approved the hydrogen energy development strategy of Vietnam until 2030, with a vision to 2050. The decision aims to develop the hydrogen energy ecosystem, including the production, storage, transportation, and use of hydrogen with synchronized and modern infrastructure based on renewable energy, contributing to ensuring energy security, achieving national climate change goals, green growth, and the goal of net zero emissions by 2050 according to the roadmap and commitments of Vietnam in sustainable and fair energy transition.
Mr. Eric Hu, Director of Net-Zero Industrial Park Solutions at Envision Energy Group, said Envision currently has the world’s first Net-Zero industrial park in Ordos (Inner Mongolia, China) combining renewable energy, clean mobility, and digital solutions to support green industrialization in the region. He sees that with outstanding advantages in natural resources and favorable geographical location, Ninh Thuan is a locality with the potential to develop NetZero industrial clusters.
To realize this goal, Envision hopes that in the future, the local government will have solutions to speed up the progress of onshore and offshore wind power projects and have preferential tax policies for exporting Net-Zero products, especially green hydrogen and ammonia. This will provide foreign companies the opportunity to invest in developing the green industry in the locality.
A representative of IHI Corporation from Japan also said that they are actively participating in activities related to the production, technology, and storage equipment of hydrogen and ammonia. Mr. Yoshii Konosuke, Chief Representative of IHI Corporation in Vietnam, proposed that the Vietnamese Government should implement several measures to minimize risks and enhance the economic efficiency of green hydrogen and ammonia production projects. To attract investors in this field, Mr. Yoshii also suggested reducing barriers for investors such as completing legal documents and detailed technical standards, establishing clear and consistent licensing mechanisms. This is essential to set up related value chains to promote the demand for green fuel in economic activities such as electricity production, industry, and transportation.
Envision Group committed to helping Ninh Thuan plan a “Net-Zero Industrial Ecosystem” to deploy the first Net-Zero industrial park and to become a green energy center in Vietnam.
