Minister Kim Sung-hwan Vows to Lower Hydrogen Price to Below 2,500 Won per Kilogram

Hydrogen Supply to Align with Completion of POSCO's Direct Reduction Demo Plant
Hydrogen Policy Expected to Shift Focus to Green and Pink Hydrogen

Kim Sung-hwan, Minister of Climate, Energy and Environment, delivers a welcome address at the opening ceremony of the World Hydrogen Expo 2025 held at KINTEX in Goyang, Gyeonggi Province on December 4, 2025. Photo by World Hydrogen Expo Organizing Committee

Kim Sung-hwan, Minister of Climate, Energy and Environment, attended the opening ceremony of the World Hydrogen Expo (WHE) 2025 held at KINTEX in Goyang, Gyeonggi Province on December 4, 2025, and announced, "The government will take responsibility and lower the price of hydrogen to below 2,500 won per kilogram."

Hydrogen is gaining attention as a future eco-friendly energy source, but its high price has slowed its adoption. Currently, the international price of green hydrogen stands at around 3 to 6 dollars (4,400 to 8,800 won) per kilogram.

Minister Kim stated, "In order for the steel industry to remain competitive in hydrogen-based steelmaking, it is said that hydrogen must be supplied at around 2,500 won per kilogram," adding, "POSCO will soon build a 300,000-ton-scale hydrogen-based steelmaking demonstration plant, and the government will ensure a hydrogen price of around 2,500 won per kilogram, so POSCO can confidently transition to hydrogen-based steelmaking."

Minister Kim had previously visited POSCO's Pohang Steelworks on October 15, shortly after the launch of the Ministry of Climate, Energy and Environment (October 1, 2025), to inspect the hydrogen-based steelmaking demonstration project site.

The steel industry accounts for 17.8% of Korea's total greenhouse gas emissions, with POSCO representing the largest share. The steel sector is pursuing hydrogen-based steelmaking to reduce carbon dioxide emissions, but the high price of hydrogen has been cited as a major obstacle.

POSCO plans to build a hydrogen-based steelmaking demonstration plant by 2028. Minister Kim promised POSCO that the price of hydrogen would be lowered to around 2,500 won per kilogram by then.

However, the Ministry of Climate, Energy and Environment is expected to focus its hydrogen policy on green hydrogen and pink hydrogen, rather than the cheaper gray hydrogen.

On this day, Minister Kim said, "Producing hydrogen at an affordable price is a global challenge, and Korea must also solve this issue quickly." He added, "While reforming liquefied natural gas (LNG) is the cheapest method, the real challenge is to produce hydrogen from renewable energy, nuclear power, or other methods at the lowest possible cost, so that it can be used as energy without further impacting the climate crisis."

Minister Kim emphasized green hydrogen, which is produced by electrolyzing water using renewable energy, and pink hydrogen, which is produced at nuclear power plants. He indicated a preference against gray hydrogen, produced by reforming LNG, and blue hydrogen, which captures carbon from gray hydrogen, due to their carbon emissions.

Minister Kim stated, "Hydrogen must take on tasks that electricity cannot fulfill in various fields," and added, "We will contribute to building and expanding the hydrogen ecosystem in areas such as transportation and utilization."

Laurent Antoni, Chair of IPHE, is delivering the keynote speech at the opening ceremony of the World Hydrogen Expo 2025 held on December 4th at KINTEX in Goyang, Gyeonggi Province. 2025.12.4 World Hydrogen Expo Organizing Committee

Laurent Antoni, Chair of the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE), who delivered the keynote speech that day, also identified lowering the price of low-carbon hydrogen such as blue hydrogen and green hydrogen as a key challenge. According to IPHE, the price of gray hydrogen is 1.5 to 2.5 dollars per kilogram, while blue hydrogen is 2 to 3 dollars, and green hydrogen is 3 to 6 dollars per kilogram, showing a significant difference.

Chairman Laurent Antoni also emphasized the need to standardize hydrogen certification systems, which differ from country to country. He stated, "Different certification systems by country could lead to disruptions in international trade and regulatory conflicts," adding, "The next two to three years will be a critical period for establishing global certification compatibility."