ENERGY TRANSITION AND LILAMA’S OPPORTUNITY FOR GREEN INDUSTRY DEVELOPMENT IN THE GLOBAL SUPPLY CHAIN

This is not only a challenge but also an opportunity for Vietnam in general and LILAMA Corporation in particular for innovating the growth model to improve the competitiveness and gradually get more extensively into the international green value chains.

 Mr. Nguyen Van Hung - LILAMA President & CEO and Mr. Klaus Ohlig - Chief of Technology Officer (CTO) of Thyssenkrupp Nucera signed the MOU on cooperation for Hydrogen Power Projects Development

Energy transition - an irreversible trend 

For many past decades, fossil fuels like coal, oil, and natural gas have played a dominant role in the global economy development. However, the pressure on carbon-dioxide reduction and the request for environment protection have boosted this conversion toward more sustainable and clean energy sources.

Many nations have issued a strategy for renewable energy development, while promoting investment in wind power, solar power, energy storage, and green hydrogen. At the same time, green hydrogen is considered one of the important solutions helping to reduce carbon emissions in such industrial fields as metallurgy, chemicals, fertilizers, petrochemical refinery, sea transportation, aviation.

In Vietnam, the energy conversion has been drastically boosted under international commitments about carbon emissions and orientations in sustainable power sources development. This opens the demand for new power projects investment, while creating chances for domestic industrial companies to take part in advanced technology fields.

To LILAMA, the energy transition has not only opened a new market but also a chance to enhance the corporation’s competitive advantage of EPC, mechanical manufacturing, and industrial machinery in new-generation power projects implementation.

LILAMA joined the Technical Workshop on Green Hydrogen Technologies and Applications held by Vietnam Green Hydrogen Center, with the attendance of about 80 experts, businesses, institutes, and students involved in discussing actionable directions for green hydrogen market development in Vietnam; Picture sourced esp.org.vn

Green industry and carbon emissions reduction, a new motivation of innovation

Parallelling with energy transition is the trend of green industry development and carbon emission reduction during the entire production chain.

At present, the criteria of environment, society, and business operation (ESG), carbon tax, carbon credit, carbon border adjustment mechanism (CBAM) have been increasingly affected to production and export operations in the world. Therefore, enterprises need to carry out technological transformation gradually, improve energy efficiency use, and reduce greenhouse gas emissions if they want to sustain their competitiveness.

Green hydrogen is considered a key chain link in the future green industry, from which a series of new industries such as green ammonia, green steel, green marine fuel, and sustainable aviation fuels will be developed, creating value chains with high value-added technology content.

LILAMA has had many advantages to join this progress thanks to its experience background in fields of thermal power, oil and gas, chemicals, fertilizer, and heavy industry. The ability to manufacture equipment, steel structures, pressure tanks, process pipe systems, electromechanical, and automation allows LILAMA to undertake a lot of important items for green industrial projects.

Particularly, the participation of electrolytic modules fabrication and assembly for the international hydrogen projects like West Coast, NEOM, and H2GS/Stegra has helped LILAMA’s subsidiaries to gradually accumulate practical experience, access the art-of-the-state technical standards, as well as improve their competitiveness in low-carbon emissions industrial fields.

LILAMA affirms the position of a leading Vietnamese enterprise in the global green energy supply chain

Improving of Vietnamese businesses’ ability to enter the global supply chain

In the context of globalization, the supply chains integration capacity has been rated not only based on costs and expenses or production but also depending on the ability to meet the requirements in terms of technique, environment, safe standards, and modern corporate governance.

The reality shows that the new-generation green hydrogen and green industrial projects require very high quality of manufacturing, project management, products traceability, materials standards, automation, data management, and operations safety.

Through large-scale international projects implementation, LILAMA has step by step strengthened a Vietnamese enterprise’s capacity in the global supply chain. Beyond the role of a manufacturing and machinery contractor, LILAMA is also targeting to become a industrial partner having ability to get more extensively into EPC projects as well as the green industry value chain in the future.

To realize this target, LILAMA needs to invest in the high-quality human resource development, standardize the management system to meet international standards, promote digital transformation, apply new technology, and expand partnerships with leading world companies.

The signing of the MOU on cooperating with Thyssenkrupp Nucera is an important advance, laying the groundwork for LILAMA to access new hydrogen technology, at the same time, to open opportunities to involve in hydrogen projects implementation inside the country and in the world.

LILAMA COMMUNICATION