PetroVietnam adapts to new energy trends

Many activities related to offshore wind power have been deployed by the Vietnam Oil and Gas Group (PetroVietnam) recently with the aim of maintaining a strong position in the country's energy transition.

PetroVietnam builds a strategy to produce hydrogen from offshore wind power to help reduce greenhouse gas emissions and create a greener future. (Source: PetroVietnam)

Vietnam's offshore wind power potential is huge, so it is necessary to pay attention to building investment attraction policies to promote domestic production of equipment production and supply chains to serve offshore wind power projects and export in the region...

New energy plays an important role in Power Plan VIII

As one of the six countries in the world most affected by climate change, Vietnam has been a pioneer in implementing “green” commitments, and is considered by the international community as a model of a developing country with many difficulties but has made leading contributions to a safe “common home” for humanity.

At the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), Vietnam pledged to develop and implement strong greenhouse gas emission reduction measures using its own resources, together with the cooperation and support of the international community, to strive to achieve net zero emissions by 2050.

Based on the commitments at COP26, the Government of Vietnam and the Group of International Partners officially adopted the Political Declaration establishing the Just Energy Transition Partnership with International Partners (JETP).

To achieve this goal, Vietnam needs to promote the development of renewable energy, improve energy efficiency and focus on energy conversion with a suitable roadmap, ensuring the goal of environmental protection, responding to climate change, but minimizing the cost burden, improving productivity, quality, efficiency of the economy and effectively solving social issues.

The Prime Minister has just signed Decision No. 500/QD-TTg dated May 15, 2023 approving the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Plan VIII). Accordingly, the plan for the development of power sources and transmission grids at voltage levels of 220 kV or higher, industry and services on renewable energy and new energy in Vietnam for the 2021-2030 period, with a vision to 2050, includes grid connection projects with neighboring countries.

The VIII Power Plan sets the goal of firmly ensuring national energy security, meeting the requirements of socio-economic development and industrialization and modernization of the country. Along with that, successfully implementing a fair energy transition associated with production modernization, building a smart grid, advanced power system management, in line with the trend of green transformation, emission reduction, and development of science and technology in the world. At the same time, forming a comprehensive energy industrial ecosystem based on renewable energy and new energy. In particular, it is proposed to strongly develop onshore wind power and offshore wind power; develop gas-fired thermal power using domestic gas to gradually replace coal-fired thermal power, reducing greenhouse gas emissions.

For a fair energy transition, the Power Plan VIII aims to strongly develop renewable energy sources for electricity production. By 2050, the renewable energy ratio will reach 67.5-71.5%; Control greenhouse gas emissions from electricity production to reach about 204-254 million tons in 2030 and about 27-31 million tons in 2050. Aim to reach a peak emission level of no more than 170 million tons in 2030, provided that commitments under JETP are fully and substantially implemented by international partners; Build a smart grid system capable of integrating and safely and effectively operating large-scale renewable energy sources.

Promote existing advantages, choose a positive and suitable direction

According to experts at the third Vietnam Clean Energy Forum, with the theme “Developing gas and wind power infrastructure in Vietnam”, on May 12, Vietnam is assessed to have the largest offshore wind power potential in Southeast Asia, so it is necessary to make the most of and effectively exploit that potential.

An offshore wind power project takes 6-7 years (from survey to completion of construction), although the main equipment must be imported, Vietnam can produce auxiliary equipment itself. Vietnam needs to be ready to participate deeply in the supply chain for wind power with great potential.

With the mission of contributing to ensuring national energy security, PetroVietnam has made remarkable and comprehensive developments in both scale and depth, completing the synchronization from oil and gas exploration and exploitation to gas industry, petrochemical refining, electricity, gas, and high-quality oil and gas technical services. In particular, many activities related to offshore wind power have been deployed by PetroVietnam recently with the goal of maintaining a solid position in the country's energy transition process.

According to the assessment of Chairman of the Board of Members Hoang Quoc Vuong, PetroVietnam has many advantages to develop offshore wind power thanks to its good financial potential, favorable capital arrangement ability with high credit rating and ability to access green financial sources, low-interest loans, long grace periods as well as other incentives from the Government and international financial institutions supporting the development of green and clean energy.

Specifically, as a state-owned enterprise operating in the field of oil and gas exploitation with its main operations at sea, PetroVietnam and its member units are considered to have the most advantages in Vietnam when carrying out offshore projects from many aspects, such as human resources, manufacturing, operation and security - defense.

Therefore, promoting existing advantages to participate in the supply chain and develop offshore wind power projects in Vietnam, increasing the localization rate of equipment, reducing electricity production costs to create a premise for developing hydrogen energy in the future as set out by PetroVietnam is considered a positive and appropriate direction. In particular, it is necessary to accelerate the speed of project implementation, be ready to master technology to narrow the gap with businesses in the world and the region and seize opportunities in the future.

Faced with the goal of developing offshore wind power to take advantage of PetroVietnam's long coastline and available facilities, a number of member units in the Group have taken urgent action, typically the Vietnam Oil and Gas Technical Services Joint Stock Company (PTSC).

Right from the 2021 General Meeting of Shareholders of PTSC, the Resolution on PTSC becoming a developer/investor in offshore renewable energy projects was passed. The goal set by PTSC is to make offshore wind power a core business service, contributing a large proportion to the total revenue and profit of the Corporation; mastering design technology; becoming a leading provider of technical services in Vietnam and in the region; becoming a major investor/developer in the field of offshore wind power in Vietnam.

Towards this goal, PTSC has proactively participated in providing services for most nearshore wind power projects in the Southwest region, such as transportation, installation of towers, wind turbines, and laying of submarine cables. In addition, PTSC also provides long-term specialized vessels for the transportation of personnel, operation and maintenance equipment at the Binh Dai - Ben Tre Wind Power Project and the Tra Vinh Wind Power Project...

In the foreign market, PTSC won the international bid for the design, procurement and manufacture of two offshore substations (OSS) for the Hai Long 2 and 3 Offshore Wind Power Project in Taiwan (China).

PTSC's average total revenue is about 20,000 - 30,000 billion VND/year; it contributes over 1,000 billion VND/year to the state budget; the average income of its workforce of more than 8,000 employees is about 1,000 USD/person/month.

PTSC General Director Le Manh Cuong said that PTSC is currently a unit of PetroVietnam with full legal basis and capacity in implementing and developing offshore renewable energy projects.

PTSC has been and will be devoting a lot of resources to investing in developing infrastructure and equipment, including seaport infrastructure, manufacturing warehouse systems, specialized manufacturing machinery systems, especially enhancing training programs on knowledge and skills in offshore renewable energy for PTSC's human resources.

“In addition, PTSC is also promoting comprehensive cooperation with many partners who are leading energy corporations in the world to help PTSC strengthen its capacity in terms of specialized technology, financial capacity, and project management and implementation capacity to be ready to receive and participate in investing in developing and implementing offshore renewable energy projects,” Mr. Cuong informed.

Source: https://baoquocte.vn/petrovietnam-thich-nghi-trong-xu-huong-nang-luong-moi-228583.html