Jung Eui-sun: "Cost Reduction and Awareness Improvement Needed to Realize a Hydrogen Society"

Revealed at the Hydrogen Council CEO General Meeting on the 20th

On the 20th (local time), at the Hydrogen Council's annual 'CEO Summit' held in Paris, France, Chung Eui-sun, Executive Vice Chairman of Hyundai Motor Group (front row, center right), and Beno?t Potier, Chairman of Air Liquide and co-chair company (front row, center left), are taking a commemorative photo. (Photo by Hyundai Motor Group)

[Asia Economy Reporter Kim Ji-hee] Chung Eui-sun, Executive Vice Chairman of Hyundai Motor Group, identified cost reduction in production and improving public perception as key tasks for realizing a hydrogen society. This marks a step forward from his active emphasis on implementing a hydrogen society to governments and companies worldwide since his appointment as co-chairman of the Hydrogen Council in January last year, by presenting a clear direction.

On the 20th (local time), at the Hydrogen Council’s ‘CEO Summit’ plenary session held in Paris, France, Executive Vice Chairman Chung stated, “There is no shortcut to a future hydrogen society. It is most important to establish concrete action plans for each sector and stage of the hydrogen industry and to continuously take action.”

At this event, he presented three major directions for realizing a hydrogen society. For hydrogen energy to be a practical solution to the climate crisis and future energy transition, it is essential to first achieve ▲cost reduction through technological innovation ▲expansion of public acceptance ▲establishment of a comprehensive safety management system across the value chain.

Regarding technological innovation, he pointed out, “Sustainable momentum must be secured through cost reduction via technological innovation in all fields of the hydrogen industry.” This means that creative technological innovations are needed to lower costs at every stage of the value chain, including production, storage, and utilization.

He also emphasized the need to actively promote the vision and value of a hydrogen society to improve public perception of hydrogen energy and build a foundation for industry growth. Executive Vice Chairman Chung added, “Establishing a perfect safety management system throughout the hydrogen industry value chain is of utmost importance.”

He positively evaluated the achievements of the Hydrogen Council over the past three years. He said, “I have witnessed the passionate efforts and dedication of each member company,” and added, “Although the Hydrogen Council was established only three years ago, it has accomplished a great deal.”

The Hydrogen Council is a global CEO coalition related to hydrogen, launched at the World Economic Forum (WEF) in Davos, Switzerland, in 2017. It includes major companies worldwide from energy, chemical, automotive, and parts sectors, with Hyundai Motor and France’s energy company Air Liquide serving as co-chair companies. The number of member companies has grown from 13 at its inception in 2017 to 81 currently.

On this day, the Hydrogen Council also released McKinsey’s ‘Hydrogen Cost Competitiveness Report,’ the first systematic analysis of cost competitiveness across the hydrogen industry. The report forecasts that advances in hydrogen technology will lead to up to a 50% reduction in costs within the next decade.

Specifically, the report identified three core factors for hydrogen cost reduction: ▲a sharp decrease in the production cost of green hydrogen via electrolysis due to falling power generation costs from renewable energy sources such as solar and wind ▲a reduction in hydrogen supply prices driven by economies of scale in hydrogen distribution and refueling infrastructure ▲and cost reductions in hydrogen fuel cell systems through expanded production in hydrogen-utilizing business sectors. To achieve this, approximately $70 billion in investments will be required in major global regions by 2030.

Meanwhile, Executive Vice Chairman Chung attended the Hydrogen Council’s annual CEO Summit and subsequently participated in France’s annual government-wide investment attraction event held at the Palace of Versailles in Paris. The event was attended by the French President, Prime Minister, and leaders of over 190 global companies. From the 21st, he will attend the WEF in Davos, Switzerland, themed ‘Stakeholders for a Cohesive and Sustainable World.’