From Hydrogen Production to Distribution... Gas Corporation Establishes Hydrogen Trading System

Focus on Systematizing Hydrogen Distribution and Organizational Restructuring
Leading the Introduction of Eco-Friendly Green Hydrogen... Exploring Cooperation and Investment Plans with Overseas Companies

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Gas Corporation has embarked on a transition to a hydrogen-based eco-friendly company by promoting hydrogen business following its existing natural gas operations. As the 'Hydrogen Distribution Dedicated Institution,' it plans to establish a hydrogen trading platform to stabilize hydrogen prices and establish a systematic distribution structure, as well as create a hydrogen distribution monitoring center. Additionally, it aims to play a leading role as a hydrogen company by importing green hydrogen with zero carbon emissions from overseas to accelerate the advent of a green hydrogen society.

On the 9th, Gas Corporation announced that it has begun building a hydrogen trading system utilizing an integrated bidding platform to systematize hydrogen distribution.

The core of hydrogen trading is to collect hydrogen with varying prices and determine an appropriate price level. Subsequently, the hydrogen trading platform will be used to conduct regular joint purchases targeting charging stations. Through this, it plans to alleviate regional and charging station price discrepancies and induce hydrogen price reductions by enhancing buyers' bargaining power through joint purchases. A separate secondary market will be operated within the integrated platform to support transactions between individual charging operators and manufacturers and to resolve short-term supply-demand imbalances.

A hydrogen distribution monitoring center will also be established. It will conduct quantitative inspections to prevent sales volumes from falling short or unfairly increasing volume during sales. To provide continuous information on hydrogen charging station operations, a real-time monitoring system will be built. Operational information such as hydrogen charging availability, waiting vehicle information, and charging prices will be disclosed in real time to enhance the convenience of hydrogen vehicle users. A service to check charging station information in real time via the hydrogen distribution center website, navigation systems, and mobile applications is scheduled to be established by November.

Furthermore, based on information such as hydrogen producers' production plans and charging stations' supply volumes, mid- and long-term supply-demand plans will be established to stabilize hydrogen supply and demand. In particular, long-term supply-demand plans will be linked with power and natural gas supply plans.

To fulfill its role as the hydrogen distribution dedicated institution, Gas Corporation established the Hydrogen Distribution Center through an organizational restructuring this year and operates two dedicated departments: the Market Operations Department and the Business Support Department. Leveraging 37 years of experience in constructing and operating natural gas infrastructure, it has laid the foundation to fully promote the hydrogen business and plans to focus on efficient hydrogen distribution going forward.

Gas Corporation is also leading efforts to import overseas green hydrogen with zero carbon emissions. By 2030, it plans to import green hydrogen from countries such as Australia and strengthen price competitiveness through the construction of renewable energy facilities, overcoming the limitations of extracted hydrogen. To secure core technologies such as water electrolysis and hydrogen liquefaction, it will cooperate with overseas hydrogen companies or seek mergers and acquisitions (M&A) and equity investments to establish itself as a global leader in the hydrogen sector. For carbon neutrality, it is also promoting the commercialization of carbon capture and utilization (CCU) technology that captures carbon dioxide generated during hydrogen extraction to produce raw materials for chemical products.

A Gas Corporation official stated, "In response to the Green New Deal policy, we will do our best to help the hydrogen industry grow into a core industry of the Republic of Korea," adding, "We will continue to actively invest in hydrogen production, supply, and distribution sectors and leap forward as a sustainable energy company based on hydrogen."

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