Korea's Hydrogen Economy Export Advancement Potential Explored, Says Korea Institute for International Economic Policy

Report on the Direction and Implications of Major Countries' Hydrogen Strategies

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[Asia Economy Reporter Moon Chaeseok] The Korea Institute for International Economic Policy (KIEP), a government-funded research institute, suggested on the 19th that South Korea should seek possibilities to advance its export strategy related to the hydrogen economy. It advised diligently monitoring the green new deal policy trends of major countries such as Germany, Japan, and the United States.

KIEP explained that when the Korean government announced the 'Korean New Deal Comprehensive Plan' last July, it adopted the establishment of a foundation for the spread of new and renewable energy and the expansion of green mobility such as electric and hydrogen vehicles as key tasks to promote low-carbon and distributed energy.

Through the division of roles between the public and private sectors, it plans to pursue ▲achieving the world's number one market share ▲shifting the production paradigm from gray hydrogen to green hydrogen ▲establishing a stable and economical hydrogen storage and transportation system ▲creating a hydrogen industry ecosystem and establishing a full-cycle safety management system.

Source: Korea Institute for International Economic Policy

KIEP emphasized the urgent need to prepare a balanced growth strategy in terms of hydrogen production, distribution, and utilization, as major countries like Germany, Japan, and the United States are accelerating efforts to strengthen their hydrogen ecosystems.

Source: Korea Institute for International Economic Policy

In the European Union (EU), with Germany at the center, the focus is on producing green hydrogen using surplus electricity generated by renewable energy sources such as solar and wind power during different times of the day.

Green hydrogen refers to hydrogen produced using electricity generated from renewable energy sources like wind, hydro, and solar power, which does not emit greenhouse gases. This differs from gray hydrogen, which is produced by catalytic reactions of steam with methane and water-gas shift processes with carbon monoxide, generating greenhouse gases.

Source: Korea Institute for International Economic Policy

According to KIEP, the production cost of green hydrogen ranges from $3 to $7.5 per kilogram, higher than gray hydrogen's $1.2 to $2.2 per kilogram, but in some regions such as Germany and Texas in the United States, green hydrogen is becoming more price competitive.

Source: Korea Institute for International Economic Policy

Japan is strengthening related technology development and international cooperation to build a hydrogen supply chain that produces and procures hydrogen by utilizing unused energy overseas from an energy security perspective.

The United States is leading in the eco-friendly mobility sector centered on electric vehicles. Democratic presidential candidate Joe Biden has pledged that the government will make bold investments in the clean energy sector, including the hydrogen economy ecosystem.

Source: Korea Institute for International Economic Policy

KIEP stated, "For the hydrogen economy ecosystem to take root, a balanced growth strategy in hydrogen production, distribution, and utilization is necessary," adding, "In a situation where interest in health and the environment has increased due to the novel coronavirus disease (COVID-19), it is essential to understand the green new deal policy trends of major countries and explore possibilities to advance export strategies related to the hydrogen economy."

Source: Korea Institute for International Economic Policy

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