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Green hydrogen in the roadmap of energy transition in Vietnam

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Vietnam is well aware of the importance of changing the structure of energy sources in the direction of increasing the proportion of renewable energy associated with economical, efficient and sustainable use of energy.

Green hydrogen in the roadmap of energy transition in Vietnam

In June, 2019, at the request of the government of Japan under its G20 presidency in Osaka, the International Energy Agency (IEA) has compiled “The future of hydrogen” report to analyze the current state of play for hydrogen and to offer guidance on its future development.

One of important contents of the summit was: Sustainable development, climate change, environment and energy. Vietnam also participated in it as an invitee. At the time of summit, there were only three countries including France, Japan and South Korea releasing their strategies for the use of hydrogen as a clean energy source.

So far, 17 governments have released hydrogen strategies, more than 20 governments have announced that they are working to develop strategies, and numerous companies are seeking to tap into hydrogen business opportunities.

According to IEA, the potential of hydrogen plays a key role in the future of clean, safe and sustainable energy. Hydrogen demand stood at 90 Mt in 2020, practically all for refining and industrial applications and produced almost exclusively from fossil fuels (natural gas and coal), resulting in close to 900 Mt of CO2 emissions.  

In order to maximumly reduce the CO2 which caused greenhouse gas emission from the production of this technology as well as from other resources, many countries are studying the low-carbon hydrogen production technologies. One of the most interested low-carbon technologies is electrolysi, biomass gasification and steam methane reforming (as showed below).  

Green hydrogen in the roadmap of energy transition in Vietnam

Source: https://www.ontario.ca/page/low-carbon-hydrogen

It is estimated that by 2030, when total hydrogen production reaches 200Mt, 70% of these shall be produced from low-carbon technologies (electrolysis or fossil fuels with carbon capture, use & storage).

Hydrogen production then grows to over 500 Mt H2 by 2050, practically all based on low-carbon technologies. Reaching these goals will require that installed electrolysis capacity increase from 0.3 GW today to close to 850 GW by 2030 and almost 3,600 GW by 2050 (Global Hydrogen Review, IEA 2021).

Green hydrogen is produced through water electrolysis, in which electricity is used to split water into hydrogen and oxygen. Hydrogen produced from electrolysis has many advantages as it can be stored in liquified gas, suitable for use in many sectors and easy carrying.

In October 2021, Enterprize Energy Group (UK – Singapore) and some European investors proposed to invest in Thang Long Wind 2 (TLW2) to produce hydrogen from seawater electrolysis to export to South Korea, Japan and Singapore). This project is located at the region of Thang Long Offshore Wind Farm project (offshore Binh Thuan). The project scale is of 2,000MW, with a total investment of US$5 billion, scheduled for commencement in 2022 to 2030.

This is the first hydrogen production from seawater electrolysis project of Vietnam. With its ideal location, it could create a breakthrough, maximumly exploit the offshore wind potential and lay the foundation for green hydrogen economy development for Vietnam in the near future. In addition, in the process of project development, TLW2 shall take full advantage of qualification, experience of local contractors like PTSC, Vietsovpetro to fabricate and process the sea facilities of project.

According to Prime Minister Pham Minh Chinh’s speech at the 4th Russian Energy Week, held in Russia from October 13 – 15, 2021 with the topic “Global Energy: Transformation for Development”, Vietnam is well aware of the importance of changing the structure of energy sources in the direction of increasing the proportion of renewable energy associated with economical, efficient and sustainable use of energy.

This roadmap is fully abided by the spirit of Resolution No.55-NQ/TW of Politburo on research, formulation and encouragement of hydrogen energy in suit with global trend. To seriously implement this roadmap, the Prime Minister approved the National Strategy on green growth in 2021-2030, with a vision to 2050 in Decision No. 1658 dated October 01, in which it clearly stated the duty an obligation of Ministry of Industry and Trade on studying, formulating the incentive mechanism for development of hydrogen in attachment with offshore wind.

PV

Source: https://vietnamnet.vn/en/business/green-hydrogen-in-the-roadmap-of-energy-transition-in-vietnam-787880.html

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Power development plan to be revised to align with Vietnam’s global climate change commitment

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The draft National Power Development Plan for the period 2021-2030 will be revised to align with Vietnam’s commitment to net-zero emissions by 2050.

Power development plan to be revised to align with Vietnam's global climate change commitment hinh anh 1

Vietnam’s consideration of raising the capacity of offshore wind power in the draft National Power Development Plan for the period 2021-2030 is applauded by wind power community. (Photo: VNA)

The draft National Power Development Plan for the period 2021-2030 (draft PDP VIII), with a vision to 2045 will be revised to align with Vietnam’s commitment to net-zero emissions by 2050 made at the 26th UN Climate Change Conference of the Parties (COP26).

The Ministry of Industry and Trade is recalculating the country’s electricity generation sources. Under a plan announced by the ministry in November, the total installation capacity of power sources by 2030 will be 155,722 MW, a reduction of 24,305 MW compared to the scenario released in March.

Under the latest scenario, coal power and LNG-fired electricity will decrease by 6,694 MW and 18,550 MW respectively, while wind power output will be promoted. Specifically, onshore wind power generation is expected to reach 17,338 MW by 2030, an increase of 1,258 MW compared to March’s scenario. Meanwhile, offshore wind power will be up by 1,000 MW to 4,000 MW by 2030.

The proportion of coal-fired power will decrease slightly, accounting for 25.49 percent of total electricity sources compared to 26.7 percent in March’s plan.

LNG-fired electricity will account for 9.49 percent while onshore wind power 11.13 percent and offshore wind power 2.57 percent in comparison with 9.9 percent, 10.7 percent and 2 percent, respectively, under the plan unveiled in March.

Mark Hutchinson, the chair of Southeast Asia Task Force at Global Wind Energy Council spoke highly of Vietnam’s commitment to reach net-zero emission by 2050 as well as the consideration of raising the capacity of offshore wind power in the draft PDP VIII, saying this is a very positive signal of the Government’s attention to and confidence in the development of offshore wind power.

According to Hutchinson, the early deployment of offshore wind power will create momentum for the development of the offshore wind power industry, thereby reducing investment costs in the future.

In the context that coal power is likely to be significantly reduced, wind power will serve as an ideal source of power to offset a reduction in electricity generation.

In addition, the development of offshore wind power will protect Vietnam’s energy industry from the risks of fuel price fluctuations in the world market, he said./

Source: VNA

Source: https://vietnamnet.vn/en/business/power-development-plan-to-be-revised-to-align-with-vietnam-s-global-climate-change-commitment-798438.html

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Magnetic strip ATM cards to remain valid next year

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A customer uses a chip card for payment at a point-of-sale (POS). VNA/ Photo

HÀ NỘI — The State Bank of Vietnam (SBV) this week issued a dispatch, noting that domestic automated teller machine (ATM) cards with magnetic strips will remain valid for normal use after December 31, 2021.

The dispatch was issued after some banks have recently started sending notices to their customers about stopping supporting cards from ATMs to meet the deadline of the SBV’s Circular 19/2016 on the roadmap to convert from issuing magnetic strip cards to chip cards from next year.

Under the new dispatch, the SBV clarified that Circular 19/2016 makes no mention of a suspension of transactions using magnetic strip cards that remain valid.

December 31 this year is the deadline for changing to chip cards, not the date that magnetic strip cards will become invalid, the SBV noted, adding customers can continue to use magnetic strip ATM cards for transactions at ATMs, point-of-sale (POS) and bank counters, and for internet and mobile banking services after December 31 this year.

Under the new dispatch, the SBV asked card issuers and card payment organisations to ensure card holders’ transactions are carried out smoothly, safely and do not affect the interests of cardholders. They were also asked not to issue policies and regulations that go against the law on bank card operations.

In addition, they were told to launch media campaigns to inform their customers that magnetic stripe cards can still be used after December 31 this year.

However, under the new dispatch, the SBV also asked card issuers to encourage and support their customers to convert magnetic cards to chip cards to enhance security and to warn them of the risks if magnetic cards continue to be used.

There are two common ways to convert magnetic cards to chip cards.

In the first way, customers only need to bring valid citizen ID card or passport to the bank’s transaction point and request to convert from magnetic card to chip card.

In the second way, customers can access digital banking applications and mobile banking to apply for and receive cards at home or at the bank’s transaction points.

Or at some banks, the process is even more convenient. For example, at TPBank, customers can exchange magnetic cards for chip cards at LiveBank 24/7 and receive cards in just a few minutes.

In order to encourage customers to change magnetic strip cards to chip cards, most banks offered this service free of charge and the change is still free at some banks.

For example, at NamABank, the bank will completely convert magnetic strip cards to VIP cards for free from now until December 31, 2021. Similarly, Techcombank is also offering this activity free of charge.

According to experts, the conversion of magnetic strip cards to chip cards is beneficial for users, contributing to improving the security level, transaction speed, safety and ensuring the interests of customers.

Specifically, a magnetic card is a card containing a magnetic strip storing customer’s encrypted information. The data is permanently stored on the magnetic strip and is encrypted only once, so it easily leads to the risk of card information theft and transaction fraud.

Meanwhile, chip cards, which are also known as “smart cards”, have a microchip attached to the surface of the card, and this is the basic difference between chip cards and magnetic strip cards. For chip cards, transaction data includes data stored on the chip and the transaction password that changes with each transaction. Specifically, every time a chip card is used for payment, the chip will generate a unique transaction code and never repeat. In case the customer’s card is stolen from a certain store, the fake card will never work because the stolen transaction code will not be reused, the card will be rejected. —      


 

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Source: https://vietnamnews.vn/economy/1092063/magnetic-strip-atm-cards-to-remain-valid-next-year.html

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Exporters told to strictly comply with EU regulations to avoid losses

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The European Union has a large demand for imported agricultural products and, thanks to the EU-Vietnam Free Trade Agreement (EVFTA), Vietnamese businesses have a unique opportunity to take advantage of this.

 However, local businesses need to strictly comply with European regulations to avoid losses when exporting to the region.

Exporters told to strictly comply with EU regulations to avoid losses
The EU applies strict requirements and regulations on imported food products. — VNA/VNS Photo Vu Sinh 

For food products, the EU has strict requirements and regulations on product quality and the maximum residue level (MRL) of pesticides.

Trade counsellor Tran Ngoc Quan, head of the Vietnam Trade Office in Belgium and EU, said that most regulations across the bloc are similar when it comes to agricultural and food products.

Germany, Austria, the UK, Netherlands and Belgium do have stricter and higher MRL levels than the standard EU regulations, though these vary with different active ingredients, fresh produce and processed products.

Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, said that while Vietnamese fruits and vegetables are more competitive than those from countries without a European trade agreement, exporters must focus on improving MRL levels.

Nguyen said: “If enterprises exporting to the EU do not comply with the regulations, they face the risk of increased levels of inspections, supervision and perhaps even being banned from exporting to these markets in the future.

“The EU applies these regulations very strictly. Enterprises that want to export to the EU must obtain certificates and production levels according to GlobalGAP.”

Nguyen added that violators run the risk of incurring heavy losses if they are caught.

According to the new EU regulation No 2021/1900, effective from November 23, the frequency of pesticide testing on Vietnamese herbs and fruits will increase. Of this, 50 per cent of testing will be applied to coriander, basil, mint, parsley, beans corn and pepper and 10 per cent will be applied to dragon fruit.

Nguyen said that as vegetable products in Vietnam often have pesticides, some samples and consignments will be tested for residue. The EU has also increased the frequency of testing, adding that the more enterprises violate the regulations, the more frequent inspections will be. 

He said bans on export to the EU could be applied to violators.

According to a representative of the Vietnam Pepper Association (VPA), the EU’s increase in testing will raise difficulties in exporting to the EU and will invite increased competition from other countries.

“In order to avoid violations, businesses must do better at testing products when exporting, as well as strengthening production links to create a clean and safe raw material area,” said a representative of VPA.

The EU also conducts post-inspections away from ports, so even though goods are being consumed or sold at supermarkets or shops, if they are not of good quality they can still be recalled, said Nguyen.

Using the example of a Vietnamese pepper export enterprise that was refused by Spain when its product was tested at the border gate recently, Nguyen said that if the violation was discovered when the product was already on shelves it would cause larger financial damage to the  Vietnamese exporter. 

Nguyen Minh Lien, General Director of Vinamex Company which purchases Vietnamese goods for export to the EU market, shared that some Vietnamese enterprises do not pay due attention to food safety issues. Lien added that due to the post-inspection of the EU market, some have had to pay fines and incur additional costs due to poor quality products.

In addition, Lien said some basic errors like incorrect packaging leads to products being returned or sold cheaper to other markets.

Lien noted when exporting goods to the EU, Vietnamese businesses must work closely with importers on product quality, packaging and contract inspection to avoid loss and damage.

She said supermarkets in the EU do not directly import goods from Vietnam, so local enterprises should cooperate with importers to arrange products at the warehouse before entering the retail market there.

She also suggested Vietnamese enterprises cooperate to diversify products, ensure sufficient output and take advantage of shared containers when exporting.

Considering EU customers are increasingly interested in buying products from businesses that contribute to community development and the environment, Nguyen said: “Sustainable development should be a long-term direction for export businesses in Vietnam.”

At the same time, even enterprises and manufacturers that follow the GlobalGAP requirements must pay attention to the plant protection ingredients that the EU bans or restricts, as some may be different from the GlobalGAP.

Source: Vietnam News

Source: https://vietnamnet.vn/en/business/local-exporters-must-strictly-comply-with-eu-regulations-to-avoid-losses-798131.html

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