Localization of Liquefied Hydrogen Valves and Introduction of 2,000 Hydrogen Buses... Pioneers of the Hydrogen Economy [Digging Energy]

First Commercialization of Liquefied Hydrogen Valves in Korea
Expansion to 2,000 Hydrogen Charter Buses
Number of Hydrogen Specialized Companies Surpasses 109

On the 10th, after exiting the Namanseong Tollgate on the Pyeongtaek-Jecheon Expressway and driving for about 10 minutes along a quiet rural road, the Surim Tech headquarters appeared. Upon entering the office of Lee Deok-jae, CEO of Surim Tech, which also serves as a conference room, various military submarine models filling one wall caught my eye.

Although the company has only about 10 employees, Surim Tech possesses unparalleled technology in the field of cryogenic gas valves in Korea. It almost exclusively handles the maintenance of ultra-low temperature valves for hydrogen fuel cell systems used in domestic submarines. "We also maintain valves that major defense conglomerates have neglected," said the CEO. While submarine maintenance serves as the company's cash cow, liquefied hydrogen valves represent its future growth engine.

First Commercialization of Liquefied Hydrogen Valves in Korea

Surim Tech leads domestic liquefied hydrogen valve technology based on its expertise in cryogenic gas valves such as liquefied nitrogen, liquefied helium, and liquefied oxygen. In 2022, it gained attention by supplying emergency shut-off devices and 4-inch check valves to Doosan Enerbility's liquefied hydrogen plant in Changwon. In 2023, it received the Minister of Trade, Industry and Energy Award on Hydrogen Day, recognized for replacing expensive imported valves through the localization of liquefied hydrogen valves.

Currently, Surim Tech is conducting liquefied hydrogen-related research projects in collaboration with various government-funded research institutes such as the Korea Institute of Machinery and Materials and the Korea Atomic Energy Research Institute. It is also designated as a hydrogen-specialized company and receives government support.

Lee Deok-jae, CEO of Surim Tech, is posing for a photo at the Surim Tech headquarters in Anseong, Gyeonggi-do. Photo by Kang Hee-jong

Hydrogen is attracting attention as a future clean fuel, but its large volume makes transportation difficult. Various technologies for transporting hydrogen are being discussed, one of which is liquefied hydrogen. Liquefied hydrogen is hydrogen cooled to minus 253 degrees Celsius. Liquefying hydrogen reduces its volume to 1/800th compared to gaseous hydrogen, increasing the amount of hydrogen that can be transported at once by tenfold. Liquefied hydrogen also enables refueling speeds four times faster. To utilize liquefied hydrogen, tanks capable of storage as well as pipelines and valves designed for liquefied hydrogen are necessary.

Liquefied hydrogen valves are not only required for tanks. They are essential components throughout the entire value chain, from liquefied hydrogen production plants to refueling stations and fuel cells. Until now, due to the small size of the domestic liquefied hydrogen market and the complexity of the technology, liquefied hydrogen valves were imported from overseas. Safety standards related to liquefied hydrogen were also not properly established. However, failure to localize liquefied hydrogen valves would inevitably deepen dependence on foreign products in the expanding hydrogen society.

Components related to liquefied hydrogen are difficult to develop because they must maintain cryogenic conditions using vacuum insulation methods. For valves, the core technology is to prevent liquefied hydrogen from vaporizing. CEO Lee said, "At minus 253 degrees Celsius, where gaseous hydrogen liquefies, steel contracts by about 0.3%, which can cause distortion," adding, "It is crucial that vaporization caused by heat intrusion does not occur."

Liquefied hydrogen valves developed by Surim Tech. Photo by Kang Hee-jong

Initially, Surim Tech was a partner company supplying ultra-low temperature gas valves from the German company Stoehr in Korea. In 2006, it also supplied ultra-low temperature valves for the Naro rocket launch pad. In 2021, by participating in a development project at Gyeonggi Technopark, it was able to localize liquefied hydrogen valves.

Surim Tech is developing a supercooled liquid hydrogen pump through technical cooperation with ILK Dresden, a German non-profit research institute established in 1964. The supercooled liquid hydrogen pump increases the pressure of liquid hydrogen to produce supercooled liquid hydrogen. Using supercooled liquid hydrogen allows for storing more fuel and drastically reduces refueling time. In February last year, Daimler Truck and Linde announced the development of supercooled liquid hydrogen fuel supply technology.

Images of liquefied hydrogen vacuum insulated pipes, emergency shut-off devices, safety valves, flow controllers, and manual valves developed by Surim Tech. Photo by Kang Hee-jong

The company is also participating in a liquefied hydrogen carrier ship development project together with the Korea Institute of Machinery and Materials and others. In this project, which aims to build a 2,000㎥ class liquefied hydrogen carrier ship by 2028, Surim Tech will supply liquefied hydrogen valves. The commercialization of liquefied hydrogen carrier ships is expected to facilitate hydrogen imports from overseas and activate the domestic hydrogen ecosystem.

CEO Lee emphasized that to promote the domestic hydrogen industry, forward industries that can increase hydrogen demand must develop. A representative example is the distribution of hydrogen buses. Hydrogen buses can be refueled more than five times compared to passenger cars, significantly expanding hydrogen demand.

Expansion to 2,000 Hydrogen Charter Buses

Wonder Mobility is a company leading the distribution of hydrogen buses. Operating the charter bus brand ‘OnBus,’ Wonder Mobility signed a business agreement in January with the Ministry of Environment, Hyundai Motor Company, Hyosung Hydrogen, Samsung C&T (Everland), and others to expand the introduction of hydrogen electric commuter buses. According to this agreement, Wonder Mobility plans to introduce 2,000 hydrogen buses for commuter use by 2030.

Wonder Mobility, which owns about 270 directly operated buses, operates commuter and school buses for Samsung Electronics, Samsung Everland, Hyundai Motor, SK Hynix, LG, Coupang, GS, Cheongdam Language Institute, Creverse, Kyung Hee University, and Kangnam University. Following the trend of switching to eco-friendly vehicles, the company has been converting its charter buses to hydrogen buses since December 2023.

At the headquarters in Seongsu-dong on the 12th, CEO Jeon Soo-yeon of Wonder Mobility said, "Hydrogen buses have no noise or vibration and are eco-friendly, so customer company employees are very satisfied."

Wonder Mobility plans to increase hydrogen buses by 250 units this year, 300 units in 2027 and 2028, 400 units in 2029, and 500 units in 2030, securing a cumulative total of 2,000 hydrogen charter buses. CEO Jeon explained, "We have already signed contracts for 240 units this year," adding, "We are pursuing additional investment to expand hydrogen charter buses."

Jeon Su-yeon, CEO of Wonder Mobility, is being interviewed by Asia Economy at the Seongsu-dong office. Photo by Yoon Dong-ju

There are about 40,000 charter buses nationwide. Like taxis, charter buses operate under a licensing system, so increasing their number arbitrarily is difficult. To expand hydrogen buses to 2,000 units, licenses must be purchased from other operators. CEO Jeon is hopeful for changes in government policy at this point. In 2023, the government decided at the 6th Hydrogen Economy Committee to review the approval of additional hydrogen charter buses, considering fairness with other buses.

Wonder Mobility currently operates a total of 62 hydrogen buses as commuter buses. Samsung Electronics’ Suwon and Pyeongtaek plants, Samsung C&T Everland, and Samsung Biologics use hydrogen buses for commuting. This year, commuter buses for Hyundai Motor, Samsung Electro-Mechanics, SK Hynix, Bundang Seoul National University Hospital, Korea University Guro Hospital, and Yeouido St. Mary’s Hospital will be converted to hydrogen vehicles.

Vice President Jeong Yuseok, Head of Domestic Business Division at Hyundai Motor Company (from left), CEO Jeon Suyeon of Wonder Mobility, Vice Minister Lee Byunghwa of the Ministry of Environment, CEO Yoon Jonghyun of Hyosung Hydrogen, and Executive Director Cho Youngmin of Samsung C&T (Everland) are posing for a commemorative photo. January 22, 2025. Photo by Hyundai Motor Company and Kia, Yonhap News.

Unlike most other charter bus operators who use consigned vehicles, Wonder Mobility focuses on directly operated vehicles. This makes the transition to hydrogen vehicles easier than for other operators. However, converting charter buses to hydrogen vehicles is still a considerable challenge because the hydrogen ecosystem is not yet fully established. CEO Jeon said, "The automobile market will inevitably transition to eco-friendly vehicles in the long term, and charter buses essentially have only two types: diesel and hydrogen buses," adding, "We boldly entered this new business to pioneer the hydrogen charter bus market ahead of others."

The price of a hydrogen bus is about 700 million KRW per unit, making it expensive. Considering government subsidies and local government subsidies, the actual purchase cost is about 200 million KRW per vehicle. In terms of vehicle price alone, there is not much difference compared to existing diesel buses. CEO Jeon said, "Since subsidy capacities for hydrogen buses vary by region, it takes a long time to deliver the vehicles."

Hyundai Motor Universe Hydrogen Electric Bus. Provided by Hyundai Motor Company and Kia. Yonhap News Agency

Regarding fuel costs, although the government provides a subsidy of 5,000 KRW per kilogram, CEO Jeon noted that due to recent rises in hydrogen prices, the fuel cost difference compared to existing diesel buses is not significant.

The biggest difficulty is refueling stations. CEO Jeon said, "Currently, hydrogen refueling stations in the metropolitan area mainly operate for quasi-public city buses, so private charter buses are deprioritized and refueling is not easy." In some cases, waiting times for refueling can be 3 to 4 hours. Sometimes, drivers get tired of waiting and use hydrogen refueling stations located far away in Jecheon, Chungbuk.

Ultimately, Wonder Mobility decided to operate hydrogen refueling stations directly to run hydrogen charter buses. It established its affiliate Wonder Energy in December last year for the hydrogen refueling station business. This year, it plans to participate in a Ministry of Environment public contest to build its first hydrogen refueling station in the Yongin area of Gyeonggi Province. CEO Jeon said, "Unlike existing hydrogen refueling stations that use 200 bar compressed hydrogen, we plan to build a 450 bar compressed hydrogen refueling station."

Number of Hydrogen Specialized Companies Surpasses 109

The Ministry of Trade, Industry and Energy operates a hydrogen specialized company system to discover and support hydrogen companies that meet certain criteria for hydrogen economy implementation. Surim Tech is one such company designated as a hydrogen specialized company and has received government support.

According to the Korea Hydrogen Alliance, as of the end of 2024, there are over 109 hydrogen specialized companies and 48 prospective specialized companies. The government plans to expand the number of hydrogen specialized companies to 600 by 2030.

Hydrogen specialized companies must have a certain proportion of hydrogen business sales relative to total sales or exceed a certain ratio of investment in hydrogen-related research and development (R&D). For example, companies with sales between 30 billion and 100 billion KRW must have at least 20% of sales from hydrogen business or at least 5% of R&D investment in hydrogen-related projects.

Hydrogen specialized companies receive support such as management consulting, technology commercialization, and market development. Additionally, the ‘Hydrogen Specialized Company PLUS’ system supports overseas expansion of hydrogen specialized companies. This year, 830 million KRW is budgeted for hydrogen specialized company support and 200 million KRW for the PLUS program.

Separately from hydrogen specialized companies, local governments nurture prospective hydrogen specialized companies that possess excellent technology and business items in the hydrogen field by supporting technology development and commercialization. This year, 900 million KRW is planned for supporting prospective hydrogen companies.