Gwangju City Launches Project to Establish Hydrogen Production Facility as Honam Hub

Korea Gas Corporation and 'Hub-Type Hydrogen Production Base Construction Project' Business Agreement

On the afternoon of the 15th, Lee Yong-seop, Mayor of Gwangju Metropolitan City, and Chae Hee-bong, President of Korea Gas Corporation, posed for a commemorative photo after signing a business agreement to promote the establishment of a hub-type hydrogen production base in the city hall business room. Photo by Gwangju Metropolitan City

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City has initiated the establishment of a hydrogen production facility capable of supplying hydrogen within a 70 km radius of Gwangju and Jeonnam from the Honam regional hydrogen production base.

On the 15th, Gwangju City announced that it signed a business agreement for the "Regional Hydrogen Production Base Construction Project" at the city hall business room, attended by Mayor Lee Yong-seop and Chae Hee-bong, President of Korea Gas Corporation, and will begin construction next year.

This agreement was promoted after Gwangju City was selected in April for the Ministry of Trade, Industry and Energy's "2020 Regional Hydrogen Production Base Construction Project," and after prior consultations with Korea Gas Corporation regarding the site and project schedule, establishing mutual cooperation plans.

The Honam regional hydrogen production base, to be built on a 7,224㎡ site in the 3rd phase of Pyeong-dong Industrial Complex, will be promoted with a total investment of 21.8 billion KRW, including 7.8 billion KRW from the national government, 11.6 billion KRW from Korea Gas Corporation, and 2.4 billion KRW from Gwangju City (land purchase cost), aiming for completion in 2022.

Equipped with hydrogen extraction and shipment facilities, it will produce up to 4 tons of hydrogen per day, enabling hydrogen supply within a 70 km radius including Gwangju and Jeonnam.

According to this agreement, Gwangju City will provide the site for the hydrogen production base and administrative support such as permits, while Korea Gas Corporation will be responsible for constructing and operating the hydrogen production facility.

Once the hydrogen production base is established, the hydrogen supply price, which was difficult to reduce due to transportation costs from distant regions such as Seosan, Yeosu, and Ulsan (100-300 km away) receiving hydrogen 7-8 times a week via tube trailers, is expected to decrease by 26.8%, from 8,200 KRW/kg to 6,000 KRW/kg.

In particular, according to the Bank of Korea's regional industry linkage analysis, the project is expected to generate economic effects such as 21 billion KRW in production inducement, 5 billion KRW in added value inducement, and 31 jobs, contributing to the creation of a hydrogen industry ecosystem and local industry.

Meanwhile, the "Regional Hydrogen Production Base Construction Project" is a key project for implementing the hydrogen economy under the government's "Hydrogen Economy Activation Roadmap" and the "Korean New Deal" comprehensive plan. According to the "Korean New Deal" green mobility distribution plan, 67,000 hydrogen vehicles and 310 hydrogen charging stations will be established by 2022.

Accordingly, Gwangju City plans to operate 2,014 hydrogen vehicles and 12 hydrogen charging stations during the same period.

Mayor Lee Yong-seop of Gwangju said, "The development of the hydrogen industry is a key task of the Korean New Deal and a core project of the Gwangju-type AI-Green New Deal aiming for a '2045 Carbon Neutral Energy Self-Reliant City.' We expect this hydrogen production base construction project to be a stepping stone for Gwangju to leap forward as an eco-friendly hydrogen city."

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