Development of New Energy Industry Technologies for Hydrogen and CCUS... Government to Promote Preliminary Feasibility Study Worth 4 Trillion Won

Deputy Minister of Industry Holds Carbon Neutrality Meeting with Energy Alliance CEO
Collecting Industry Opinions to Establish Sector-Specific Carbon Neutral Innovation Strategies in Energy and Industry Within the Year

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government is set to conduct a preliminary feasibility study on technology research and development worth up to 4 trillion won in new energy industries such as hydrogen and carbon dioxide capture, utilization, and storage technology (CCUS). By November, it will also establish an 'Industrial and Energy Research and Development (R&D) Strategy.'

Park Ki-young, Vice Minister of the Ministry of Trade, Industry and Energy, announced this at a carbon neutrality meeting with representatives of companies participating in the Energy Alliance held on the 29th.

The Ministry of Trade, Industry and Energy plans to promote breakthrough technological innovation in the energy sector by advancing large-scale preliminary feasibility R&D projects in areas such as green hydrogen and CCUS. This includes a cross-ministerial preliminary feasibility study project for hydrogen technology development to revitalize the hydrogen economy, a hydrogen cluster construction project worth 1.2739 trillion won, and policies to establish new CCUS technology demonstration and infrastructure worth up to 3 trillion won over the next decade.

By the end of the year, the ministry plans to actively incorporate industry opinions to prepare carbon neutrality innovation strategies by sector, including energy, industry, and transportation.

Additionally, to encourage voluntary reduction efforts by the industry, the government intends to devise multifaceted support measures, including financial assistance. In the 2022 government budget, the carbon neutrality-related budget is 12 trillion won, of which the Ministry of Trade, Industry and Energy’s budget accounts for about 28%, approximately 3.4 trillion won.

Vice Minister Park Ki-young stated, "The government will mobilize all policy means to support corporate efforts in nurturing future growth industries like the second semiconductor in the energy sector, including hydrogen, offshore wind power, hydrogen turbines, and CCUS," adding, "Now, let us, the government and companies, together transform the national challenge of carbon neutrality into new growth engines and job creation opportunities for our economy."

Meanwhile, the meeting was organized to explain the progress of government carbon neutrality policies, including the 2050 carbon neutrality scenario and the 2030 Nationally Determined Contribution (NDC) enhancement plan, to the energy industry and to collect opinions and suggestions. In the Energy Alliance’s presentation on 'Energy Industry Tasks for Realizing a Carbon Neutral Society,' they emphasized ▲ a more proactive role for the private sector in the carbon neutrality process ▲ alleviation of burdens arising from carbon neutrality implementation ▲ and the need to expand the foundation for the energy industry's carbon neutrality transition through R&D and international cooperation.