Petrolimex and ADB shake hands on energy transition

Petrolimex and ADB shake hands on energy transition

On February 26, Vietnam National Petroleum Group (Petrolimex) and the Asian Development Bank (ADB) signed an MoU on energy transition cooperation towards building a strategic partnership to develop clean and sustainable energy in Vietnam.

Photo: Petrolimex's website

Under the agreement, the ADB will provide technical support for Petrolimex to implement its works, including a preliminary assessment of the group's business portfolio and potential energy transition roadmaps.

The two sides also target the development of a detailed energy transition strategy by exploring and assessing the diversification of Petrolimex's product portfolio towards cleaner and greener solutions through cost-benefit analysis.

The ADB will also facilitate Petrolimex to develop a roadmap and action plan for the group's energy transition journey.

The collaboration demonstrates Petrolimex’s key role in Vietnam's transition towards a low-carbon economy and is in line with ADB’s 2023-2026 strategy, focusing on two main pillars. The first is supporting Vietnam's transition to a green economy. The second concentrates on harnessing the country's private sector and promoting social equity.

Speaking at the signing ceremony, Petrolimex chairman Pham Van Thanh said, "The collaboration will not only help Petrolimex optimise its energy strategies but also provide innovative solutions for the group to achieve sustainable development goals and move towards carbon neutrality."

ADB country director for Vietnam Shantanu Chakraborty said he appreciates Petrolimex’s key role in the local petroleum market.

"Petrolimex boasts extensive expertise and experience in operating green hydrogen production factories and the promotion of sustainable aviation fuel. The collaboration between ADB and Petrolimex is particularly vital given Vietnam's commitment to achieving net-zero emissions by 2050," Chakraborty said.

The MoU will be the first step for an important strategic research project, supporting Petrolimex to become Vietnam’s leading provider of green and environmentally friendly energy products in 2025, with a vision to 2035.

VIR