SK Group proposes new energy production and storage model in Vietnam

On March 8, Prime Minister Pham Minh Chinh had a meeting with representatives of SK Group in Canberra, Australia.

Discussing its carbon-neutral liquefied natural gas value chain, SK’s leaders said that the group was implementing several cross-border projects in countries such as South Korea, Australia, and Timor-Leste.

For such projects, natural gas is used to produce hydrogen, while exhausted gas fields serve as permanent CO₂ storage sites during the production process. SK claims that the projects can generate clean energy thanks to the sequestration of 98 per cent of emissions.

SK’s leaders expressed the hope of deploying this model in Vietnam. Although this model requires the participation of three countries, Vietnam has all the necessary conditions and advantages to implement it alone.

PM Chinh said he appreciated SK’s proposal to invest in hydrogen projects in Vietnam, which is a priority field in Vietnam.

He proposed that the group work with the Ministry of Planning and Investment and relevant government agencies to accelerate the preparation for the projects in line with the regulations. He also recommended SK establish a strategic partnership with state-owned oil giant Petrovietnam.

In a meeting with PM Chinh last October, SK Group’s chairman Chey Tae-won said, “We will support Vietnam's clean energy transition and collaborate in achieving carbon neutrality by utilising cutting-edge technologies such as carbon capture, utilisation, and storage, small nuclear reactors, and energy solutions.”

“Our goal is to build an eco-friendly ecosystem throughout the entire process from production to consumption in partnerships with local governments,” he added.

SK E&S, a subsidiary of SK Group, is implementing clean energy initiatives in Vietnam. On June 20, 2023, SK E&S formed a collaboration on hydrogen production with Vietnam’s T&T Group and Korea Gas Corporation with a view to exploring opportunities for hydrogen production, aligning with Vietnam's long-term energy plan.

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