[Exclusive] Ministry of Environment: "Nitrogen Oxides Also Regulated in the 9th Basic Electricity Plan"..."Impact on LNG and Hydrogen Power Generation"

Ministry of Industry "Under Review"... Industry "Additional Burden Hinders Industrial Development"
Potential Contradictions in Energy Policy While Aligning with Fine Dust Measures

One of the detailed contents of the "Strategic Environmental Impact Assessment Consultation on the Power Supply and Demand Plan" that the Ministry of Environment delivered to the Ministry of Trade, Industry and Energy on the 28th of last month. (Data=Ministry of Environment)

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy is considering including regulations on nitrogen oxides (NOx) and sulfur oxides (SOx) at the request of the Ministry of Environment in the upcoming '9th Basic Plan for Electricity Supply and Demand (9th Electricity Plan)'. If implemented, this is expected to inevitably affect not only coal power generation but also liquefied natural gas (LNG) and hydrogen power generation, which the current government has been focusing on.

According to the 'Consultation Contents on Strategic Environmental Impact Assessment of the Electricity Supply Plan' obtained by Asia Economy on the 30th, the Ministry of Environment requested the Ministry of Trade, Industry and Energy to "consider consistency with the 'Comprehensive Plan for Fine Dust Management' and present the fine dust reduction effect by calculating not only direct emissions of fine particulate matter (PM2.5) but also sulfur oxides and nitrogen oxides." The Ministry of Trade, Industry and Energy is required to consult with the Ministry of Environment before finalizing the 9th Electricity Plan, and this document is the final request letter sent by the Ministry of Environment to the Ministry of Trade, Industry and Energy on the 28th of last month.

The Ministry of Environment's request means that when presenting the fine dust calculation standards in the 9th Electricity Plan, standards should be specified not only for the total amount of PM2.5 (particles with a diameter of 2.5 micrometers or less, fine particulate matter) but also for each pollutant such as sulfur oxides and nitrogen oxides. A Ministry of Trade, Industry and Energy official only stated that it is "under review." Initially, the Ministry planned to include a system calculating only PM2.5 in the 9th Electricity Plan.

Government Has Promoted LNG Power Generation, but...

Nitrogen oxide emission figures for liquefied natural gas (LNG) power generation and coal power generation announced by the Ministry of Environment. (Source: Ministry of Environment)

The Ministry of Environment's demand for the Ministry of Trade, Industry and Energy to disclose emission calculation standards for each pollutant separately stems from the judgment that managing only PM2.5 makes it difficult to reduce fine dust in the power generation sector. The comprehensive fine dust plan announced by the Ministry of Environment in November last year states, "Along with the reduction target for direct PM2.5 emissions, reduction targets for substances contributing to secondary fine dust formation will also be presented concurrently."

Among the two pollutants presented by the Ministry of Environment, nitrogen oxides are particularly problematic. If the Ministry of Trade, Industry and Energy includes nitrogen oxide standards in the 9th Electricity Plan, the burden on companies in the LNG power generation and hydrogen fuel sectors could increase.

The power generation industry faces additional burdens of 'nitrogen reduction' on top of the government's coal phase-out and carbon taxes from the United States and the European Union (EU). An industry official said, "Just as coal power operators install desulfurization facilities, nitrogen oxide decomposition facilities will need to be installed, which will increase the burden on LNG operators with aging power plants," adding, "Securing new LNG supplies is already difficult, and adding regulations will increase the burden."

This could result in a discordant outcome with the government's energy policy. The government planned to expand the share of LNG power generation as an energy source to complement renewable energy while promoting coal phase-out. Additionally, hydrogen vehicles are being fostered alongside electric vehicles as future automobiles.

Environmental groups have long pointed to NOx emissions from LNG power plants as a 'major cause of fine dust.' According to the Ministry of Environment, NOx emissions from LNG power generation are 0.0397 kg per megawatt-hour (MWh), reaching up to 85% of coal's 0.0467 kg. This is why the Ministry of Environment has demanded transparent disclosure of nitrogen oxide emissions in addition to sulfur oxides emitted by coal power generation in the fine dust standards.

In the case of hydrogen power generation, since the current method mainly uses 'reformed hydrogen (gray hydrogen)' extracted from LNG, it cannot be free from nitrogen oxide emission issues until the development of 'green hydrogen' technology (producing hydrogen by electrolyzing water with electricity generated from renewable energy).

Contradiction Between Environmental and Energy Policies

Tasks for reducing domestic ultrafine dust emissions by sector and substance in the "Comprehensive Fine Dust Management Plan (2020~2024)" announced by the Ministry of Environment in November last year. (Data=Ministry of Environment)

Experts point out that this is a result of contradictions between the government's fine dust reduction measures and renewable energy expansion policies. The Moon Jae-in administration promoted LNG power generation to implement energy transition policies, but to reduce fine dust, LNG must be regulated.

Professor Lee Deok-hwan, Emeritus Professor of Chemistry and Science Communication at Sogang University, said, "Sulfur oxide regulations will impact coal power, and nitrogen oxide regulations will affect LNG power," adding, "If the Ministry of Environment actively manages nitrogen oxides, it will be difficult to operate coal and LNG power plants in South Korea in the future."

Earlier, the Ministry of Environment set targets in the comprehensive fine dust plan to reduce annual emissions in the power generation sector by 2024 as follows: PM2.5 by 63% (2,000 tons), SOx by 80% (63,000 tons), and NOx by 82% (112,900 tons). For the industrial sector, the targets are annual reductions of PM2.5 by 8% (3,300 tons), sulfur oxides by 25% (54,300 tons), and nitrogen oxides by 63% (160,200 tons).

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