Expectations for 43 Trillion KRW Investment by Hyundai Motor and Others Following Expansion of Clean Hydrogen Scope
[Sejong=Asia Economy Reporter Kwon Haeyoung] As discussions on the amendment to the 'Hydrogen Act' for revitalizing the hydrogen economy reignite in the National Assembly, the possibility of its passage during this month's extraordinary session has increased. The ruling and opposition parties have agreed to include hydrogen production processes that emit some carbon within the scope of clean hydrogen. Since the government plans to provide incentives for the future use of clean hydrogen, investments in the hydrogen sector worth 43 trillion won by related companies such as Hyundai Motor Company are also expected to be activated.
According to the government and the National Assembly on the 4th, the National Assembly's Industry, Trade and Energy Committee will hold a bill review subcommittee on the 5th to deliberate on the 'Hydrogen Economy Promotion and Hydrogen Safety Management Act (Hydrogen Act) amendment bill,' which centers on the clean hydrogen certification system and the mandatory clean hydrogen power generation system.
The amendment includes provisions to mandate the supply of electricity produced from clean hydrogen power generation, with the key issue being the scope of clean hydrogen recognition. Hydrogen is classified into 'Green Hydrogen,' which emits no carbon during production; 'Blue Hydrogen,' which captures and stores emitted carbon; and 'Gray Hydrogen,' which emits carbon. The government plans to promote policies by providing incentives for clean hydrogen in the future, and the scope of clean hydrogen has been the biggest point of contention in National Assembly discussions. Recently, it has been reported that the ruling and opposition parties have reached a consensus to include not only 'Green Hydrogen' but also 'Blue Hydrogen' within the scope of clean hydrogen.
A ruling party official stated, "There had been some criticism that the scope of clean hydrogen should not be interpreted too broadly, which had prevented the law from passing, but the subcommittee plans to focus on discussing the amendment to the Hydrogen Act this time," adding, "An agreement has been reached between the ruling and opposition parties, and some differences within the ruling party have also been somewhat narrowed, so it is expected to pass without major difficulties tomorrow."
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