Fostering 1,000 Hydrogen Companies Over 20 Years... "Considering Introduction of Hydrogen-Dedicated RPS"

Prime Minister Jeong Sye-gyun Chairs 1st Hydrogen Economy Committee Meeting
Fostering 1,000 Specialized Companies by 2040
"Mid- to Long-Term Review of Separate RPS Introduction for Renewable Energy"
Adding About Two of the 3rd New Towns as Hydrogen Cities
Expanding to 850,000 Hydrogen Vehicles and 660 Hydrogen Charging Stations by 2030

The photo shows the 'Value and Future of Hydrogen' video guidebook released by Hyundai Motor Group. It highlights that the hydrogen economy is by no means limited to just 'hydrogen vehicles.' (Photo by Hyundai Motor Group)

[Asia Economy Reporter Moon Chaeseok] To make the Republic of Korea a hydrogen powerhouse, the government has declared its intention to nurture 1,000 hydrogen-specialized companies within 20 years. Policies linked to renewable energy sources such as solar and wind power will also be established. Instead of the existing Renewable Portfolio Standard (RPS) for new and renewable energy supply obligations, the government will consider and promote the establishment of a 'hydrogen-exclusive' RPS system in the mid to long term. It is also notable that two of the third-phase new towns will be additionally developed as 'hydrogen cities.'

On the 1st, the government launched the Hydrogen Economy Committee and held the 1st Hydrogen Economy Committee meeting at KINTEX in Ilsan, chaired by Prime Minister Chung Sye-kyun. Attendees included Prime Minister Chung, ministers from key departments such as the Ministry of Trade, Industry and Energy, Ministry of Economy and Finance, Ministry of Environment, as well as private sector figures like Chung Eui-sun, Executive Vice Chairman of Hyundai Motor Group (Hyundai Motor), Lee Chi-yoon, CEO and Chairman of Deokyang, and Chae Hee-bong, President of Korea Gas Corporation.

The newly launched committee serves as the control tower for Korea’s hydrogen economy, composed of ministers from eight related ministries (secretariat = Ministry of Trade, Industry and Energy) and experts from industry, academia, and civic groups. It formulates and promotes key policies under the 'Act on the Promotion of Hydrogen Economy and Hydrogen Safety Management' (Hydrogen Economy Act), enacted last February.

Before the committee meeting, Prime Minister Chung awarded appointment letters to 11 private committee members, including Vice Chairman Chung, who is also chairman of the Hydrogen Council, a global hydrogen company CEO consortium, and Professor Moon Il of Yonsei University.

The first committee meeting deliberated and approved six agenda items.

First, the Ministry of Trade, Industry and Energy prepared a 'Plan to Strengthen the Competitiveness of the Hydrogen Industry Ecosystem.' The core goal is to nurture 500 hydrogen-specialized companies by 2030 and 1,000 by 2040.

They will promote the 'Hydrogen Materials, Components, and Equipment Project' across five major sectors: hydrogen mobility, fuel cells, liquefied hydrogen, hydrogen charging stations, and water electrolysis. Medium-scale production bases will be established in four major regions: Gyeongsangnam-do, Honam, the central region, and Gangwon-do. By 2025, 40 small-scale production bases will be built.

A green hydrogen demonstration project will be pursued to establish a mass production system of 100MW capacity by 2030. Policies will be implemented in connection with renewable energy such as Jeju Island’s wind power and Saemangeum’s solar power.

Notably, the government announced it will consider and promote the introduction of a separate RPS system for hydrogen, distinct from renewable energy, in the mid to long term. This comes amid serious profitability issues for small-scale operators due to the recent sharp drop in prices of renewable energy certificates (REC) for solar power. The plan to increase hydrogen-related RPS has sparked controversy. The government’s stance is that it will review the necessity of introduction to stimulate demand.

The Ministry of Land, Infrastructure and Transport’s announcement to develop two of the third-phase new towns as hydrogen cities also draws attention. The plan is to add third-phase new towns to existing hydrogen pilot cities such as Ulsan, Ansan in Gyeonggi Province, Jeonju and Wanju County in Jeollabuk-do, and Samcheok in Gangwon-do. Infrastructure will be expanded, including fuel cell power generation in apartment complexes, hydrogen charging stations, and hydrogen bus supply. This aligns with the government’s 'Green New Deal' core infrastructure construction efforts.

A 'Green Industrial Complex' will be established in Saemangeum, the country’s largest renewable energy power generation complex, to conduct renewable energy and green hydrogen demonstration projects. Starting next year, a fuel subsidy system for large hydrogen vehicles such as freight trucks will be introduced. From 2023, large-scale integrated charging facilities will be built at transportation hubs.

The Ministry of Environment announced plans to expand to 850,000 hydrogen vehicles and 660 hydrogen charging stations by 2030. They judged that simply increasing the number of vehicles is insufficient; proper charging infrastructure must be established to grow into a global hydrogen powerhouse.

The types of vehicles for distribution will be expanded to include large freight trucks and long-distance buses. Financial support such as purchase subsidies will be strengthened. Sites for charging station installation will be secured in advance. Safety will be ensured through pre-construction safety evaluations and post-construction inspections.

Blue and green charging stations will be established to minimize greenhouse gas emissions. Blue stations capture carbon dioxide at extraction-type charging stations, while green stations reduce greenhouse gases through biogas and renewable energy. Additionally, economic feasibility will be enhanced through domestic production of core parts and reductions in inspection fees.

The Hydrogen Convergence Alliance Promotion Group will be responsible for promoting the hydrogen industry. Korea Gas Corporation will handle distribution, and Korea Gas Safety Corporation will be responsible for safety. These three dedicated organizations will support the committee and government’s hydrogen economy activation policies through professional workforce training, standardization, price stabilization, establishment of fair distribution systems, and formulation of facility safety standards.