Vietnam's national flag flutters near the Ho Chi Minh Mausoleum in Hanoi, Vietnam, June 27, 2023. (PHOTO / XINHUA)

HANOI - Vietnam aims to produce 100,000-500,000 metric tons of hydrogen a year by 2030 as part of its energy transition efforts, according to the country's hydrogen development strategy adopted earlier this month.

The output would be raised to 10-20 million tons by 2050, including green hydrogen, according to a government document detailing the strategy reviewed by Reuters.

The production, distribution and usage of hydrogen will help "meet the country's national targets for climate change, green growth and to meet its net zero target by 2050", according to the document.

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The hydrogen output will partly replace natural gas and coal at power plants by 2030, according to Vietnam's hydrogen development strategy, adding that hydrogen will also be used for transport and for fertilizer, steel and cement production

Hydrogen is categorized "green" when it is extracted from water using electrolysis powered by renewable energy and is seen as crucial to help decarbonise industry, though the technology is still expensive and at an early stage of development.

The hydrogen output will partly replace natural gas and coal at power plants by 2030, the document said, adding that hydrogen will also be used for transport and for fertilizer, steel and cement production.

By 2050, hydrogen will be responsible for 10 percent of the country's electricity generation, it added.

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Vietnam will mobilise both public and private funds for hydrogen production, including from green bond issuance and from Just Energy Transition Partnership, a financing scheme made up of equity investments, grants and concessionary loans from members of Group of Seven, multilateral banks and private lenders.