After 2030, 'Hydrogen Self-Reliance'... Launch of Public-Private Task Force to Pioneer Overseas Supply Chains

After 2030, at least 10-50% of domestic hydrogen demand must be sourced overseas
Cannot ignore practical issues like domestic by-product hydrogen supply potential
Government to build platform for overseas clean hydrogen import among domestic companies and institutions
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Considering possible hydrogen demand surge... Public-private task force pioneers overseas clean hydrogen initiatives

The government, companies, and experts foresee that domestic supply capacity alone will be insufficient if hydrogen demand surges in the future, and they plan to establish overseas supply chains in the long term. This reflects the determination to achieve "hydrogen self-reliance" by 2030. Photo by Jinhyung Kang, Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy. / aymsdream@

[Asia Economy Reporter Moon Chaeseok] South Korea's hydrogen industry is also targeting the next 10 years. The country plans to promote the import of overseas clean hydrogen by 2030. It has prepared a response strategy, judging that domestic supply technology and capacity alone will be insufficient if demand explodes. The year 2030 is predicted by the industry to be the time when Samsung Electronics' 'Vision 2030' system semiconductors, Hyundai Motor Company's 'Flying Car' future vehicles, and battery alliances including LG Chem and SK Innovation will be fully realized.

On the 23rd, the Ministry of Trade, Industry and Energy announced that it signed a Memorandum of Understanding (MoU) on mutual cooperation for building overseas clean hydrogen supply chains with 30 companies and institutions at the Lotte Hotel in Seoul, and launched the Green Hydrogen Overseas Business Group. Attendees included 16 private companies such as Daewoo Shipbuilding & Marine Engineering and Doosan Fuel Cell, 5 public enterprises including Korea Gas Corporation and Korea Electric Power Corporation (KEPCO), 6 quasi-governmental and research institutions such as the Korea Institute of Energy Technology Evaluation and Planning, as well as the Hydrogen Convergence Alliance and Korean Register.

The government signed the MoU with hydrogen-related companies and institutions because it predicts that at least 10 to 50% of domestic hydrogen demand after 2030 will need to be procured from overseas. As of June 2020, the public and private sectors, having established a certain foundation for the hydrogen industry, judged that it is now time for 'qualitative improvement.'

The problem lies in domestic supply. Potential for by-product hydrogen supply, greenhouse gas emissions from extracted hydrogen, domestic green hydrogen production capacity, and technological limitations cannot be overlooked. After the MoU, a joint public-private hydrogen business planning team will seek ways to import affordable overseas clean hydrogen.

The main contents of the MoU include ▲ public-private cooperation to lead the global hydrogen economy industry ▲ basic feasibility studies for building overseas hydrogen supply chains, technology development, demonstration, international cooperation, and joint research through public-private collaboration. This is part of the plan the government has been pursuing since last year after establishing the 'Hydrogen Economy Activation Roadmap' and detailed implementation plans in six areas: standards, research and development (R&D), hydrogen vehicles, infrastructure, charging stations, and safety.

The government expects to have a cumulative total of 100 charging stations this year and to secure 1GW of hydrogen fuel cells by 2022. As of last month, 2,231 hydrogen fuel cell vehicles have been distributed, about a 120% increase compared to 1,008 vehicles during the same period last year. The government anticipates that annual hydrogen demand for transportation will increase from 4,000 tons this year to 370,000 tons in 2030 and 1 million tons in 2040. Hydrogen use in industries such as steel and chemicals is expected to expand.

The government will establish an early-stage cooperation system among institutions. It will reduce project risks through active international cooperation between governments. The private sector will actively participate from the early planning stages when building overseas clean hydrogen supply chains to secure momentum for project promotion.

For about six months after signing the MoU, a professional consulting firm will conduct economic, technological, and geopolitical feasibility analyses to select candidates for overseas clean hydrogen supply. Then, over 4 to 5 years, overseas clean hydrogen production and supply will be demonstrated (Phase 2), followed by inducing private investment in overseas clean hydrogen production and supply over 3 to 4 years (Phase 3).

To build overseas supply chains, strengthening the global competitiveness of Korean companies will be pursued simultaneously. From next year, hydrogen-specialized companies will be designated and nurtured. Support will be provided for startups and business diversification in the hydrogen sector to solidify South Korea's hydrogen industry ecosystem. Regional specialized clusters will be created to develop industrial infrastructure, and regional ecosystems will be supported in collaboration with local innovation institutions.

To institutionally support these measures, the 'Hydrogen Economy Committee' chaired by the Prime Minister will be convened early on the 1st of next month. According to related ministries, Prime Minister Chung Sye-kyun will preside over the meeting, attended by Minister of Trade, Industry and Energy Sung Yun-mo and other ministers and private experts.

The Ministry of Trade, Industry and Energy expects that through this MoU, companies and institutions will establish a complete supply chain that produces, transports, and supplies hydrogen from various overseas sources, enabling South Korea to lead the global hydrogen economy.

Minister Sung urged, "Please cooperate between the public and private sectors to become a leader in the hydrogen field, secure advanced technology related to clean hydrogen production and international supply chains, and open a bright future for South Korea's hydrogen economy."

This content was produced with the assistance of AI translation services.