Hydrogen Industry Consortium Centered on 4 Groups, Hanwha, Hyundai Heavy, Lotte Also Considered

Additional Participating Companies to Be Confirmed by Next Month, Scheduled to Launch in September

[Asia Economy Reporter Changhwan Lee] Representative companies leading carbon neutrality in South Korea, including SK Group, are Hyundai Motor Group, POSCO Group, and Hyosung Group. They are actively developing hydrogen energy as an alternative to traditional fossil fuels, demonstrating their commitment to achieving carbon neutrality.

According to industry sources on the 23rd, a hydrogen business council composed mainly of four groups?Hyundai Motor, SK, POSCO, and Hyosung?is recruiting additional participating companies ahead of its launch scheduled for September.

The hydrogen business council is a gathering of private companies promoting the activation of the hydrogen economy and the realization of carbon neutrality. Earlier, the heads of these four companies met on the 10th at the Hyundai Motor and Kia Technology Research Center in Hwaseong, Gyeonggi Province, to discuss the establishment of the hydrogen business council.

Operated in the form of a CEO council, the hydrogen business council plans to include other companies in the future to create a nationwide hydrogen economy boom. According to the industry, there have been inquiries from companies engaged in carbon neutrality and eco-friendly energy businesses about additional participation.

The hydrogen business council plans to finalize additional participating companies by next month and officially launch by holding a CEO general meeting in September.

Companies participating in the hydrogen business council regard the hydrogen business as a key future growth engine and are focusing on business expansion. Hyundai Motor has led the global market by mass-producing the world’s first hydrogen electric vehicle in 2013. It plans to produce 500,000 hydrogen electric vehicles and 700,000 hydrogen fuel cell systems annually by 2030.

POSCO, under the vision of being a “leading green hydrogen company driving the hydrogen economy,” aims to make hydrogen business a new growth engine and plans to produce 5 million tons of green hydrogen and achieve hydrogen sales of 30 trillion won by 2050.

Hyosung is promoting the establishment of a value chain from hydrogen production to supply. Hyosung plans to invest 1 trillion won over the next five years to increase its liquefied hydrogen production capacity to 39,000 tons per year.

The goal is to contribute to reducing about 10% of South Korea’s carbon dioxide emissions by building a hydrogen economy. To this end, Hyosung Heavy Industries held a groundbreaking ceremony for a liquefied hydrogen plant on the 21st at the site of Hyosung Chemical’s Yongyeon 3 Plant in Nam-gu, Ulsan. Linde Hydrogen Energy, a joint venture established by Hyosung Heavy Industries and Germany’s Linde Group, plans to build a liquefied hydrogen plant with an annual capacity of 13,000 tons by early 2023.

Hanwha, Hyundai Heavy Industries, Lotte, and Doosan are also actively engaged in the hydrogen business. They are considered strong candidates to join the hydrogen business council additionally.

Hanwha is expanding its related business by acquiring U.S. hydrogen tank company Cimarron, which started as an internal venture of NASA, and U.S. PSM, which possesses hydrogen co-firing power generation technology.

Hyundai Heavy Industries Group announced plans to build a hydrogen value chain covering transportation, storage, and utilization by 2030, based on the infrastructure and technological competitiveness of its affiliates.

Lotte Group is also constructing gaseous hydrogen charging stations and hydrogen fuel cell power plants centered on Lotte Chemical, while Doosan is growing its hydrogen business focusing on Doosan Fuel Cell, a hydrogen fuel cell manufacturer.

An industry insider said, “Major companies view eco-friendly hydrogen business as one of the core future growth engines and are actively expanding it,” adding, “The related market is expected to grow significantly in the future.”