Vietnam Targets $40 Billion Carbon Storage Market with CCS Initiatives
Vietnam aims to enter a $40 billion carbon storage market by leveraging depleted oil and gas fields for CO2 storage. The initiative aligns with the country's energy transition and emissions reduction goals while fostering the development of a carbon capture, transportation, and storage (CCS) sector in Southeast Asia.
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Vietnam is exploring a carbon storage market estimated at $40 billion by utilizing depleted oil and gas fields for CO2 storage, as stated by Minister of Industry and Trade Le Manh Hung. Collaborative research with Japan is underway to assess potential sites for CCS in the northern region, coinciding with discussions on amendments to the Petroleum Law to support this emerging sector.
The draft law includes provisions for financial responsibility of CCS operators to prevent the burden from shifting to the state. Additionally, it proposes incentives for developing deepwater and offshore oil and gas projects to enhance recovery rates and attract investment. The integration of renewable energy into existing oil and gas operations is also emphasized, supporting Vietnam's broader energy transition and emissions reduction strategy.
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