Support of 1.37 Billion KRW Provided to 12 Hydrogen Refueling Stations Operating at a Loss Last Year

Average of 1.1 trillion KRW per location

(Photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] The government will provide support for hydrogen fuel purchase costs for hydrogen refueling stations that incurred deficits last year for the first time.

The Ministry of Environment announced on the 9th that it will provide 1.37 billion KRW in hydrogen fuel purchase costs to 12 hydrogen refueling stations. This means that each station will receive an average of about 110 million KRW in hydrogen fuel purchase support.

The support targets are hydrogen refueling station operators who received a completion inspection certificate (permit) by the end of 2019 and had operational performance in 2020. However, due to the limited budget of 1.47 billion KRW, hydrogen refueling stations operated by large corporations, public institutions, and research hydrogen refueling stations were excluded.

The Ministry of Environment established this support standard in consultation with hydrogen refueling station operators. The 12 hydrogen refueling stations receiving fuel purchase support this time recorded an average deficit of 183 million KRW last year. Their revenue was 307 million KRW, but expenditures were 490 million KRW, which was higher. Fuel purchase costs and labor costs accounted for 87% of the expenditures. The Ministry decided to support 3,443 KRW/kg, which is 70% of the difference between the average hydrogen purchase price (6,777 KRW/kg) and the break-even price where revenue equals expenditure (1,859 KRW/kg).

The Ministry of Environment plans to expand the hydrogen refueling station construction project to improve conditions for hydrogen vehicle distribution, a core project of the hydrogen economy, and to achieve carbon neutrality. Additionally, to stabilize hydrogen refueling station operations early, the Ministry intends to actively review related support systems so that hydrogen refueling stations not selected for this support project can also receive assistance.

Kim Seung-hee, Director of Air Environment Policy at the Ministry of Environment, said, "We hope this hydrogen refueling station fuel purchase support will provide practical help to hydrogen refueling station operators," and added, "We will continue to communicate with hydrogen refueling station operators to resolve difficulties in the field."

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