SK, Hyundai Motor, and Other Companies to Invest 43 Trillion KRW in Hydrogen Economy by 2030

The 3rd Hydrogen Economy Committee Meeting Held

Prime Minister Chung Sye-kyun (center) is taking a commemorative photo with Hyundai Motor Group Chairman Chung Eui-sun (left) and SK Group Chairman Chey Tae-won (left) at the hydrogen industry ecosystem establishment declaration ceremony held at SK Incheon Petrochem on March 2, 2021. Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Seon-hee] Domestic private companies such as SK, Hyundai Motor, and POSCO will invest a total of 43.4 trillion KRW in the hydrogen economy by 2030. The government also plans to support the smooth execution of related investments.

On the afternoon of the 2nd, the Ministry of Government Policy Coordination announced that the private investment plan was discussed at the '3rd Hydrogen Economy Committee' held at SK Incheon Petrochem in Seo-gu, Incheon, chaired by Prime Minister Chung Sye-kyun. The Hydrogen Economy Committee is a control tower for the hydrogen economy, chaired by the Prime Minister and composed of ministers from eight related ministries, as well as representatives from industry, academia, and civic groups.

The investment scale and details by company are as follows: ▲ SK with 18.5 trillion KRW for fuel cell power plants, etc. ▲ Hyundai Motor with 11.1 trillion KRW for hydrogen vehicles, etc. ▲ POSCO with 10 trillion KRW for hydrogen reduction steelmaking development ▲ Hanwha with 1.3 trillion KRW for green hydrogen production ▲ Hyosung with 1.2 trillion KRW for liquefied hydrogen plants, among others.

Accordingly, the government plans to support a budget of 824.4 billion KRW, a 40% increase from last year, for infrastructure construction and technology development related to the hydrogen economy. In this regard, it plans to promote the establishment of hydrogen industry cluster complexes in regions such as Incheon, Saemangeum, and Ulsan, and apply for preliminary feasibility studies.

Prime Minister Chung Sye-kyun (center), Hyundai Motor Group Chairman Chung Eui-sun (right), and SK Group Chairman Chey Tae-won (left) are applauding at the 3rd Hydrogen Economy Committee held at SK Incheon Petrochem on March 2, 2021. Photo by Yonhap News.

In his opening remarks, Prime Minister Chung said, "With the full implementation of the 'Hydrogen Act' this year, the public, companies, and government will unite with the spirit of 'Dongjugongje (同舟共濟)' to create a balanced hydrogen industry ecosystem across hydrogen production, distribution, and utilization, aiming for carbon neutrality by 2050."

He especially praised the private companies that announced large-scale investment plans, saying, "It is a turning point for hydrogen, which has so far remained in laboratories, to become mainstream in the market economy, as companies representing our economy in various fields such as energy, steel, chemicals, and automobiles have prepared investment plans." He added, "The government will also promptly promote institutional improvements to ensure that private investment plans are realized."

The meeting was attended by Prime Minister Chung (chairman), government members including ministers and vice ministers of Industry, Economy and Finance, Science and Technology, Environment, Land, Infrastructure and Transport, and Oceans and Fisheries, as well as private members such as Chung Eui-sun, Chairman of Hyundai Motor Group. SK Group Chairman Chey Tae-won and Incheon Mayor Park Nam-chun also attended.

Meanwhile, immediately after the meeting, Prime Minister Chung attended the 'Incheon Hydrogen Industry Foundation Establishment Memorandum of Understanding (MOU) Signing Ceremony' and then inspected the planned site for SK's liquefied hydrogen plant and petrochemical factory. SK is promoting the construction of the world's largest liquefied hydrogen production and shipping facility with an annual capacity of 30,000 tons and plans to supply hydrogen at reasonable prices to 200,000 hydrogen vehicles in the Seoul and Incheon metropolitan areas starting in 2023.