First Public Institution Selected in General Hydrogen Power Generation Bidding
Ulsan Strengthens Its Status as a Hydrogen-Leading City
The 'Rhythmic Hydrogen Fuel Cell Combined Heat and Power Plant' has become the first public institution to be finally selected in the competitive bidding for general hydrogen power generation.
As a result, Ulsan's status as a 'hydrogen-leading city' is expected to be further solidified.
The city of Ulsan announced that the Rhythmic Hydrogen Fuel Cell Combined Heat and Power Plant, one of the key projects of the hydrogen pilot city successfully completed last year for the first time in Korea, was finally awarded in the competitive bidding for the '2025 Ministry of Trade, Industry and Energy General Hydrogen Power Generation Bidding Market' on August 14.
The final selection was made through a review by an evaluation committee composed of external experts and a resolution by the Hydrogen Power Generation Bidding Market Committee. A total of 77 power plants participated in the bidding, and the Rhythmic Hydrogen Fuel Cell Power Plant was ultimately selected with a competition ratio of 2.4:1 compared to the available volume.
With this, Ulsan has set a record as the first among the 12 hydrogen city development projects nationwide, led by the Ministry of Land, Infrastructure and Transport, to sell electricity produced by hydrogen fuel cell generation in the general hydrogen power market.
The general hydrogen power generation bidding market was first established in 2023 under the 'Hydrogen Economy Promotion and Hydrogen Safety Management Act.' It is a system for purchasing and supplying electricity produced using hydrogen or hydrogen compounds as fuel, and is divided into clean hydrogen power generation and general hydrogen power generation depending on the fuel used.
The general hydrogen power generation market, in which Ulsan was selected this time, allows the use of extracted hydrogen and by-product hydrogen to promote the installation of distributed power sources, taking into account the ecosystem where fuel cells have already been deployed. Distributed power sources offer advantages such as ensuring stable and sustainable power supply and reducing the cost of building transmission networks.
Only power generation facilities using fuels that meet the domestic clean hydrogen certification standard (less than or equal to 4kg CO2e of greenhouse gas emissions per 1kg of hydrogen) can participate in the clean hydrogen power generation market.
The Rhythmic Hydrogen Fuel Cell Combined Heat and Power Plant is a facility realized by extending hydrogen pipelines, which were previously centered on industrial complexes, into urban areas. It consists of three 440kW-class phosphoric acid fuel cells (PAFC) totaling 1.32MW and has been in commercial operation since June last year, selling electricity to the Korea Power Exchange.
With this final selection, the plant is expected to generate approximately KRW 1.1 billion in additional annual revenue by selling electricity under more stable conditions.
Mayor Kim Doo-gyeom stated, "It is meaningful to become the first public institution in Korea to qualify as a general hydrogen power generation operator," adding, "We will continue to do our best to expand infrastructure such as the Ulsan-style hydrogen city development project so that Ulsan can continue to grow as a hydrogen-leading city."
The hot water (75°C) generated as a by-product during power generation at the Rhythmic Hydrogen Fuel Cell Combined Heat and Power Plant is supplied for heating and hot water to the nearby Rhythmic With You Apartment. The Rhythmic With You Apartment is recognized as the world's first carbon-neutral hydrogen apartment with no greenhouse gas emissions, and residents enjoy about a 30% reduction in heating costs per household compared to other fuels, resulting in high satisfaction among residents.
A 'hydrogen pilot city' refers to a city where a hydrogen ecosystem encompassing production, transportation, and utilization is established, using hydrogen as a primary energy source. The project, promoted by the Ministry of Land, Infrastructure and Transport to provide citizens with a healthy and clean city through urban innovation utilizing hydrogen, selected three locations in 2019: Ulsan, Ansan in Gyeonggi Province, and Wanju/Jeonju in North Jeolla Province.
Following its selection as a hydrogen pilot city, Ulsan was also the first in the country to be consecutively chosen for the hydrogen city development project. The city is accelerating the expansion of hydrogen-based infrastructure, focusing on Buk-gu and the Ulsan Mipo National Industrial Complex, to create an energy transition city that stands out from others.
In addition, Ulsan Urban Corporation (President Yoon Doohwan), the agency promoting the Rhythmic Fuel Cell Combined Heat and Power Plant project and which successfully completed the hydrogen pilot city development project, was recognized for its achievements and became the first among the 12 local governments involved in hydrogen city development to receive the Minister of Land, Infrastructure and Transport Award on December 31 last year.
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