Ministry of Industry to Invest 1.1 Trillion Won in R&D for Solar Power, Hydrogen, and More This Year

"Focused Investment in Core Technologies for Green New Deal and Carbon Neutrality"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy announced that it will invest 1.1326 trillion KRW this year in research and development (R&D) for solar power, hydrogen, and other technologies. Marking the first year of carbon neutrality by 2050, the ministry plans to focus its capabilities on developing core technologies.

On the 18th, the ministry announced that it will open 119 new energy technology development projects in the first half of this year. The goal is to develop technologies that support the Green New Deal and the realization of carbon neutrality.

Last year, it invested 950.6 billion KRW in projects such as commercializing floating solar power, domestic production of key components for hydrogen charging stations, and developing ultra-fast electric vehicle charging systems.

This year, it will invest 1.1326 trillion KRW in R&D, which is 19.1% more than last year. It will spend 214.2 billion KRW on new projects in the first half of the year.

The ministry explained that more budget must be allocated this year than last year to realize the Green New Deal and carbon neutrality policies.

First, in the first half of the year, 125.9 billion KRW will be invested in 56 projects related to new and renewable energy demand management and greenhouse gas reduction. To activate the hydrogen economy, 125.7 billion KRW will be invested in hydrogen and fuel cells, increasing the investment by 52.9% compared to last year's 82.2 billion KRW.

After achieving R&D results, the ministry plans to enable purchasing by demand companies (large corporations) and create new markets. It will newly establish the "Public Energy Leading Investment Project" with a budget of 4.8 billion KRW this year.

To this end, 17 projects requiring mandatory participation of public enterprises in the Request for Proposal (RFP) process have been identified. Ten projects will be announced in the first half, and seven in the second half of the year.

The ministry will enact the "Energy Public Enterprise Demand-Linked Technology Development Project Operation Guidelines" to allow public enterprises to purchase R&D outcomes. Additionally, it plans to establish the "Plan to Activate Public Procurement of Energy R&D Outcomes" within the first half of the year.

Major Projects Related to Energy Safety. (Source: Ministry of Trade, Industry and Energy)

Safety management during the R&D process will be strengthened. 30.2 billion KRW will be invested in technology development to enhance the safety of hydrogen charging stations and energy storage systems (ESS), a 15.8% increase from last year's 26.1 billion KRW.

To encourage corporate energy transition, companies in converged industrial complexes whose energy industry sales account for more than 50% of their total sales will be designated as "Energy Specialized Companies" and receive local tax reductions.

Moreover, the amendment to the "Converged Complex Act," currently pending in the National Assembly standing committee, will provide grounds for supporting specialized companies and designating dedicated institutions.

46.7 billion KRW will be invested in fostering innovative energy small and medium enterprises (SMEs), and 45.28 billion KRW in energy workforce development. Three additional Energy Convergence Graduate Schools will be designated within the first half of the year.

The ministry plans to receive project proposals in March and April, select project performers through evaluation, and begin full funding support after agreements are made by May.

Detailed information about this announcement can be found on the websites of the Ministry of Trade, Industry and Energy and the Korea Energy Technology Evaluation Institute. A YouTube project briefing session will be held on the 5th of next month to provide guidance on the announcement details, project application methods, and future schedules.

Source: Ministry of Trade, Industry and Energy

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