Demonstration of "Green Ammonia-Based Carbon-Free Power Generation" Accelerates
Laying the Foundation for Proactive Response to Carbon Regulations
Mayor Lee Kangdeok: "A Turning Point for Pohang to Emerge as an Eco-Friendly Industrial City Leading Carbon Neutrality"
On December 25, Pohang City was officially selected for the government's first "Distributed Energy Specialized Region" public contest, establishing a solid foundation for taking the lead in the next-generation energy industry and achieving carbon neutrality.
This designation was finalized as the project passed the final review at the 37th Energy Committee meeting. The significance is particularly great as this is the government's first public contest project to establish a regional distributed energy system.
After being selected as the final candidate site for the distributed energy specialized region through a working committee evaluation in May, the city experienced a setback when the designation was postponed at the Energy Committee meeting on November 5. However, by actively revising and resubmitting the business model, Pohang City ultimately achieved this valuable result of final designation.
The model proposed by Pohang City is the "Green Ammonia-Based Carbon-Free Distributed Energy Demonstration Project." The core of the project is to build hydrogen engine power generation facilities based on green ammonia in the Yeongil Bay General Industrial Complex and supply 40 MW of carbon-free electricity to companies related to secondary batteries. Through this, the strategy is to simultaneously promote the commercialization of distributed power sources and the establishment of eco-friendly industrial infrastructure.
This designation as a specialized region is expected to make a significant contribution not only to achieving the national greenhouse gas reduction target (NDC) by 2030, but also to responding to the EU Carbon Border Adjustment Mechanism (CBAM), which will be implemented in 2026. The city expects that by supplying carbon-free power, local export companies will be able to reduce their carbon border tax burden and enhance their competitiveness in the global market.
Since March last year, Pohang City has proactively conducted a research project to establish a "Distributed Energy Specialized Region Plan." The city has also refined its business model through multiple strategic meetings and expert consultations, based on close cooperation with North Gyeongsang Province, local National Assembly members, and central government agencies.
Mayor Lee Kangdeok stated, "This designation as a distributed energy specialized region will be a crucial turning point for Pohang to emerge as an eco-friendly industrial city leading the way in carbon neutrality," adding, "Through the green ammonia-based carbon-free power demonstration project, we will firmly establish a foundation for our local export companies to proactively respond to carbon regulations."
Going forward, Pohang City plans to activate the "Haeoreum Alliance Pohang Carbon-Free Energy Council," which will include North Gyeongsang Province, distributed energy operators, and companies in the industrial complex. Through this, the city will establish a mid- to long-term roadmap for building and efficiently operating the specialized region, accelerate administrative procedures such as enacting related ordinances and designating regulatory free zones, and work to create a sustainable energy ecosystem.
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