Companies and Experts Unite in Urging Swift Introduction of Clean Hydrogen Certification System

KCCI Hosts 4th Carbon Neutrality Policy Forum
'Current Status and Improvement Tasks of Domestic Hydrogen Industry and Policies'

To achieve carbon neutrality by 2050 and the 2030 carbon reduction target (NDC), it has been argued that clear classification criteria for clean hydrogen must be established, supported by bold incentives at the level of advanced countries.

The Korea Chamber of Commerce and Industry held the "4th Carbon Neutrality Policy Forum" on the 29th at the Chamber of Commerce building in Jung-gu, Seoul, focusing on the current status and challenges of the domestic hydrogen industry. Companies and experts attending the forum stated, "Hydrogen is an essential energy source for the 2030 NDC and 2050 carbon neutrality," and emphasized, "It is urgent to quickly introduce a clean hydrogen certification system based on carbon emissions and to foster the hydrogen industry ecosystem and related infrastructure."

The clean hydrogen certification system is a scheme that grades hydrogen based on the greenhouse gas emissions generated throughout the hydrogen production process, certifying hydrogen with low carbon emissions as clean hydrogen. Major countries provide differentiated incentives according to the clean hydrogen grade.

The United States, through its clean hydrogen certification system, has set the minimum standard for clean hydrogen at carbon emissions of 4 tons or less per 1 ton of hydrogen produced, and supports everything from hydrogen production to facility investment under the Inflation Reduction Act (IRA). When producing clean hydrogen, tax support of up to $3 per kilogram of hydrogen and up to 30% for related facility investments are provided. Global consulting group McKinsey analyzed that the global hydrogen market will grow at an average annual rate of 9.2%, reaching $2.5 trillion by 2050. The government also expects that 567,000 jobs will be created during the hydrogen economy transition process.

A bird's-eye view of the Incheon SK E&S hydrogen liquefaction plant. SK E&S is constructing the world's largest hydrogen liquefaction plant on a site of approximately 50,000㎡ (about 15,000 pyeong) within the SK Incheon Petrochem complex.
[Photo by SK E&S]

Major Companies such as SK and Lotte Propose 'Prompt Introduction of Clean Hydrogen Certification System' and 'Bold Incentives'

Kwon Hyung-gyun, Vice President of SK E&S, a hydrogen production company, said, "Blue hydrogen is a practical alternative to achieve the 2030 national reduction target (NDC)," and added, "The clean hydrogen certification system should be implemented within this year to establish a blue hydrogen industry ecosystem, and bold incentives at the level of major countries such as the U.S. are necessary." Kim Yong-hak, Executive Director of Lotte Chemical's Hydrogen Energy Business Group, stated, "The system should be designed to gradually strengthen clean hydrogen standards after hydrogen supply and demand have stabilized."

Shin Seung-gyu, Executive Director of Hyundai Motor Company, representing the transportation sector, said, "Commercial vehicles such as buses and trucks, which find it difficult to switch to electric vehicles, have no choice but to use hydrogen as an energy source," and suggested, "Support similar to electric vehicle subsidies should be considered." Meanwhile, Je Hoo-seok, CEO of Doosan Fuel Cell, representing the power generation sector, said, "The increase in renewable energy that produces electricity only at certain times is placing a heavy burden on the existing power grid," and emphasized, "Zero-carbon power sources such as hydrogen turbines, hydrogen engines, and hydrogen fuel cells that can secure power grid flexibility must be expanded." Je proposed the establishment of a 'Clean Hydrogen Bidding Market' to expand hydrogen-centered zero-carbon power sources. The clean hydrogen bidding market is a system where electricity produced using hydrogen or hydrogen compounds (such as ammonia) as fuel can be purchased and supplied. Hydrogen power generation operators can supply electricity to KEPCO or district electricity operators through the hydrogen power generation bidding market of the Korea Power Exchange.

Lotte Chemical hydrogen tank. It has passed the basic performance evaluation required for hydrogen electric vehicles and has obtained the United Nations Economic Commission for Europe (ECE) R134 certification (qualification for selling high-pressure container products) to ensure safety and reliability.
[Photo by Lotte Chemical]

Experts Urge Urgent Development of Domestic Hydrogen Industry

Professor Cho Hong-jung of Dankook University, in his presentation on 'Current Status and Challenges of Domestic Hydrogen Policy,' explained, "Key domestic industries such as semiconductors, petrochemicals, steel, and cement are classified as hard-to-abate industries where carbon reduction is difficult," and added, "There is no practical means of carbon neutrality other than replacing the fuels used with hydrogen." Professor Cho emphasized, "Since major countries are already strongly promoting domestic industrialization policies for hydrogen and other clean energies, it is urgent to foster the hydrogen industry to achieve both greenhouse gas reduction targets and growth."

Professor Park Cheol-wan of Seojeong University said, "Hydrogen holds significant meaning beyond greenhouse gas reduction across energy and industry, not only for short-term storage of small to medium-scale power but also for large-scale direct combustion and hydrogen reduction," and stressed, "Establishing a hydrogen industry ecosystem should be the nation's top priority." Woo Tae-hee, Executive Vice President of the Korea Chamber of Commerce and Industry, expressed hope that "the government will create conditions for companies to participate in overseas clean hydrogen-related projects through active incentive support."