Korea Leads in Hydrogen Vehicle Adoption, but Infrastructure Ranks Last

[Asia Economy Reporter Changhwan Lee] South Korea has secured world-class competitiveness in hydrogen utilization sectors such as hydrogen fuel cell vehicle distribution and fuel cell power generation, but there is a technological gap compared to major countries in hydrogen production, storage, and transportation, and infrastructure such as charging stations is also insufficient.

On the 8th, the Federation of Korean Industries analyzed the current status and challenges of the domestic hydrogen economy and argued that hydrogen economy policies should focus on securing core technologies (such as hydrogen production technologies) through research and development (R&D) and expanding infrastructure construction.

The hydrogen economy refers to all industries and markets necessary to utilize hydrogen as an energy source. The hydrogen economy value chain consists of hydrogen production, storage and transportation, and utilization. Hydrogen does not produce any harmful substances (greenhouse gases, fine dust, etc.) during its utilization process and has higher efficiency compared to fossil fuels, making it a leading future clean energy.

The scale of the hydrogen economy is expected to expand rapidly. According to the Hydrogen Council, by 2050 hydrogen will account for 18% of final energy consumption, with 400 million passenger cars and 20 million commercial vehicles utilizing hydrogen. This corresponds to about 20% of the global automobile market. Additionally, the market size is expected to reach $2.5 trillion (approximately 2,940 trillion KRW) and create up to 30 million jobs.

In South Korea, a market size of 70 trillion KRW and the creation of 600,000 new jobs are anticipated. Furthermore, about 20% of the annual carbon dioxide reduction target is expected to be achieved through hydrogen utilization, playing a key role in responding to climate change.

Source: Federation of Korean Industries

◆South Korea’s Investment and Achievements Concentrated in Utilization Areas like Hydrogen Vehicles, Infrastructure and Technology Lagging

South Korea has secured competitiveness in hydrogen economy utilization sectors such as hydrogen fuel cell vehicles and fuel cell power generation. In 2019, South Korea ranked first worldwide with 4,194 hydrogen fuel cell passenger cars distributed. Hydrogen fuel cell power generation capacity also ranked first at 408 MW.

Hyundai Motor Company established the world’s first mass production system for hydrogen trucks and signed a contract to export 1,600 units of 10-ton class hydrogen trucks to Switzerland by 2025.

However, investment in the hydrogen industry is excessively concentrated in utilization sectors, and technological capabilities lag behind leading countries such as the United States, Japan, and Germany.

South Korea’s share of global hydrogen economy-related patent applications is 8.4%, which is lower than major countries like Japan at about 30%. Also, despite the high number of hydrogen vehicles, the number of charging stations is only about one-third of Japan’s, causing significant inconvenience and dissatisfaction among consumers.

Major countries are focusing on securing hydrogen through developing hydrogen production technologies and imports, as well as building infrastructure such as charging stations and pipelines. The EU is concentrating on developing eco-friendly hydrogen production technologies. It plans to install 20?40 GW scale water electrolysis systems by 2030 to produce green hydrogen without carbon emissions by utilizing renewable energy sources such as solar and wind power.

Japan has set a strategy to secure sufficient hydrogen by establishing an international hydrogen import network importing hydrogen produced in Australia and Brunei by 2030. The United States is promoting hydrogen production technology based on wind power (Wind2H2 project) and focusing on expanding hydrogen infrastructure centered in California.

China, a latecomer in the hydrogen economy, is fostering the hydrogen industry by establishing four major zones (Beijing, Shanghai, Guangdong Province, Dalian) and advancing technology development and commercialization.

The Federation of Korean Industries pointed out that although South Korea has a roadmap for revitalizing the hydrogen economy, the hydrogen industry ecosystem is overly concentrated in utilization sectors and recommended expanding investment in production, storage, and transportation sectors.

Yoo Hwan-ik, Director of Corporate Policy at the Federation of Korean Industries, said, "To maintain continuous competitiveness in hydrogen utilization sectors where South Korea has strengths, securing hydrogen and building infrastructure to support these sectors are essential," adding, "The government should increase R&D investment in hydrogen production and infrastructure sectors, expand hydrogen charging stations, and increase public sector purchases of hydrogen vehicles to establish the initial market."

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