Hydrogen Joint Purchase Lowers Purchase Price by 11%... Joint Purchase Charging Stations Increase from 12 to 60

[Sejong=Asia Economy Reporter Kwon Haeyoung] Through the hydrogen joint purchase pilot project, the hydrogen purchase price at hydrogen charging stations became about 11% cheaper than the national average hydrogen supply price at hydrogen charging stations (7,328 KRW/kg). In particular, hydrogen stations in the Gangwon region, which were located far from hydrogen production sites and had a higher than average price (8,240 KRW/kg), became approximately 21% cheaper through joint purchase.

The Ministry of Trade, Industry and Energy announced on the 24th that, together with the hydrogen distribution agency (Korea Gas Corporation), it will expand the 'Hydrogen Joint Purchase Phase 1 Pilot Project' from 12 hydrogen charging stations to 60 stations.

As of June, there are a total of 94 hydrogen charging stations. The target for construction by 2021 is a cumulative total of 180 stations.

Currently operating hydrogen charging stations are experiencing operating deficits due to high hydrogen purchase costs and limited numbers of hydrogen vehicles. In particular, fuel purchase costs are the biggest factor in operating deficits.

As of May, there are a total of 14,532 hydrogen vehicles (14,426 passenger cars and 106 buses). The average daily usage of hydrogen charging stations is about 38 vehicles (based on 2020).

This 'Hydrogen Joint Purchase Pilot Project' involves the hydrogen distribution agency aggregating the demand volumes of each station and selecting suppliers to supply hydrogen as cheaply as possible through bulk purchasing agency services. The Phase 1 joint purchase conducted in the first half of the year was carried out by selecting hydrogen suppliers for each of the two regions through competitive bidding for a purchase volume of 438 tons needed until the end of next year at 12 stations in 2 regions.

An official from the Ministry of Trade, Industry and Energy stated, "Support for hydrogen joint purchase will contribute to improving the operating conditions of charging stations," adding, "In the future, it will lead to incentives for expanding private investment for charging infrastructure expansion and ultimately benefit consumers using hydrogen vehicles."