[Hydrogen Economy, Companies Take the Lead] Clean Hydrogen Certification System Becomes a Catalyst for the Hydrogen Industry

The 'Clean Hydrogen Certification System,' which will serve as a catalyst for the 'hydrogen economy,' is expected to be implemented next year. There has been ongoing debate about what should be considered 'clean hydrogen.' Resolving this uncertainty and clearly specifying incentives for hydrogen production and utilization are expected to accelerate the development of the hydrogen industry ecosystem.

The 'Clean Hydrogen Certification System' certifies hydrogen as clean hydrogen if the greenhouse gas emissions during its production or import process are below a certain level. The goal is to create a clean hydrogen ecosystem to achieve carbon reduction targets. The system will classify clean hydrogen into grades based on greenhouse gas emissions and plans to use this classification for future subsidy payments. The draft announced at the briefing in April this year defined not only green hydrogen (produced from renewable energy) but also blue hydrogen (produced with carbon capture) and pink hydrogen (produced using nuclear power) as clean hydrogen. The greenhouse gas emission standard for certification as clean hydrogen in Korea is expected to be 4 kg of carbon per 1 kg of hydrogen. The emission calculation scope covers the entire lifecycle of hydrogen, from the extraction of hydrogen raw materials (such as natural gas) to hydrogen production. The government plans to finalize and announce the grading criteria for the clean hydrogen certification system by the end of the year.

It is evaluated that the clean hydrogen certification system is essential for domestic key industries that emit a lot of carbon to survive in the carbon-neutral era. Professor Cho Hong-jong of Dankook University’s Department of Economics explained, "Major domestic industries such as semiconductors, petrochemicals, steel, and cement are classified as hard-to-abate industries where carbon reduction is difficult," adding, "There is no practical means of carbon neutrality other than replacing fuel with hydrogen."

Accounting firm Samjong KPMG recently reported that the majority of domestic hydrogen demand comes from carbon-emitting sectors such as power generation, petrochemicals, and steel. As of 2021, 87% of domestic greenhouse gas emissions originated from the energy sector. Professor Cho emphasized, "Major countries are already strongly promoting domestic industrial policies for clean energy such as hydrogen," and added, "To achieve greenhouse gas reduction targets and growth simultaneously, fostering the hydrogen industry is urgent."

Some argue that blue hydrogen, which reduces carbon emissions by applying Carbon Capture, Utilization, and Storage (CCUS) technology, should be recognized as clean hydrogen within a certain scope. There is also discussion about producing 'pink hydrogen' using nuclear power and prioritizing its supply to the steel industry, which has high carbon emissions.