[Upcoming Hydrogen Economy] Hydrogen Buses Starting 'Popularization'... Regulations Holding Back Progress

Seoul City and Local Governments Accelerate Hydrogen Bus Transition
No Current Legal Standards for Liquefied Hydrogen Production, Storage, and Distribution

As a symbol of the hydrogen era, buses are emerging as the preferred mode of transportation over passenger cars. Hydrogen buses will soon be seen operating in city centers in Seoul, as well as in Incheon, Busan, and Wonju. By 2026, three years from now, more than 3,000 hydrogen buses are scheduled to be introduced. Additionally, about 2,000 public institution and corporate commuter buses are expected to be replaced with hydrogen buses.

Compared to electric buses, hydrogen buses have shorter refueling times and longer driving ranges when fully charged, making them a next-generation transportation option poised to replace diesel buses.

The economic viability of hydrogen buses comes directly from their fuel, liquefied hydrogen. Domestic production of liquefied hydrogen is expected within this year to support the spread of hydrogen buses. However, the establishment of distribution and refueling infrastructure is slow due to invisible regulations.

Hydrogen Bus Conversion Status

Currently, three liquefied hydrogen plants in South Korea are preparing to operate. SK E&S plans to produce 30,000 tons of liquefied hydrogen annually starting this November at its Incheon liquefied hydrogen plant.

Linde Hydrogen Energy, a joint venture between Hyosung Heavy Industries and the global gas specialist Linde, is constructing a plant with an annual capacity of 13,000 tons at Hyosung Chemical’s Yongyeon plant and will begin full operation in December. Doosan Enerbility is also preparing to operate a plant with an annual capacity of 1,700 tons next month at its Changwon plant.

Hydrogen industry players believe that for the liquefied hydrogen business to succeed commercially, it is crucial to establish an ecosystem that covers everything from production to transportation by tanker trucks to refueling stations, and the provision of hydrogen refueling services at those stations.

However, even if they start producing liquefied hydrogen soon, the reality is that distribution and supply are not possible. This is because current laws, such as the High-Pressure Gas Safety Control Act, do not have standards related to the production, storage, and distribution of liquefied hydrogen. Until now, gaseous hydrogen has been stored and distributed in high-pressure tanks. Since it was in a gaseous state, production, storage, and distribution could proceed without regulations specific to liquefied hydrogen.

When hydrogen changes from a gas to a liquid, its volume decreases to 1/800th. Liquefied hydrogen allows for large-capacity storage and has excellent transportation efficiency, significantly reducing transportation costs. It can also be supplied at lower pressure than gaseous hydrogen, enhancing safety. The challenge is that liquefaction requires lowering the temperature to minus 253 degrees Celsius.

Therefore, maintaining cryogenic temperatures during transportation is critical. While transportation technology to support this is necessary, South Korea currently lacks performance testing facilities for key liquefied hydrogen components such as storage tanks and safety valves.

Moreover, while the U.S. and Europe allow liquefied nitrogen as a testing fluid, South Korea only permits liquefied hydrogen or liquefied helium. Liquefied nitrogen technology operates at minus 196°C, but liquefied hydrogen (minus 253°C) and liquefied helium (minus 269°C) require even lower temperatures. However, there are no testing facilities capable of conducting such tests domestically, leaving related companies unable to undergo performance inspections even if they want to.

The government and the Korea Gas Safety Corporation plan to establish testing equipment by 2024. However, since liquefied hydrogen refueling stations based on overseas technology are expected to enter the market within this year, domestic companies fear they will lose the market without being able to respond.

A hydrogen industry official said, "Although hydrogen refueling stations and liquefied hydrogen businesses are being demonstrated through regulatory sandboxes, it is not easy to revise laws and regulations. To foster the hydrogen industry, regulatory improvements must be accelerated."