Top Executive Personally Rolls Up Sleeves in 'National Representative' Council... "Will Enhance Competitiveness of Hydrogen Ecosystem" (Comprehensive)

Korea H2 Business Summit Official Launch
Korean Hydrogen Council to Accelerate Hydrogen Society

On the 8th, the heads of companies who visited the '2021 Hydrogen Mobility+ Show' held at KINTEX Exhibition Hall 2 in Goyang-si, Gyeonggi-do, took a commemorative photo after touring the POSCO booth. From the left: Huh Se-hong, President of GS Group; Cho Hyun-sang, Vice Chairman of Hyosung Group; Shin Dong-bin, Chairman of Lotte Group; Chey Tae-won, Chairman of SK Group; Choi Jeong-woo, Chairman of POSCO Group; Chung Eui-sun, Chairman of Hyundai Motor Group; Huh Jung-seok, Vice Chairman of Iljin Holdings; Jung Ki-sun, Vice President of Hyundai Heavy Industries Holdings; Lee Kyu-ho, Vice President of Kolon Group. / Goyang - Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporters Kim Hyewon and Choi Daeyeol] The Korea H2 Business Summit, a Korean version of the Hydrogen Council aimed at realizing a hydrogen economy society, officially launched on the 8th. About ten business leaders, including Chung Euisun, Chairman of Hyundai Motor Group, and Chey Tae-won, Chairman of SK Group, gathered in one place to unite their efforts for the activation of the hydrogen economy and the realization of carbon neutrality.

The Korea H2 Business Summit, which includes a total of 15 member companies including 10 major domestic conglomerates such as Hyundai Motor, SK, POSCO, and Lotte Group, held its inaugural general meeting on the morning of the same day at KINTEX in Goyang, Gyeonggi Province. The initial members Hyundai Motor, SK, and POSCO jointly serve as co-chair companies, with Hyundai Motor Group taking the first secretariat role representing the meeting body in rotation.

Chairman Chung said at the general meeting, "Although Korea has been slower than Europe and Japan in the balanced development of the hydrogen industry ecosystem, I am confident that our companies, which have global competitiveness across all industrial sectors, can achieve this." He added, "I hope the Korea H2 Business Summit will establish itself as a leading platform that not only enhances individual corporate competitiveness but also integrates companies, policies, and finance to improve the completeness and competitiveness of the hydrogen industry ecosystem and contribute to the development of the hydrogen economy."

Chairman Chey stated, "The hydrogen industry is not only a response to climate change but also a new industry for Korea that can contribute to society by creating future jobs and contribute economically through global market expansion." He added, "SK Group will also play a pivotal role in revitalizing the hydrogen ecosystem."

At the Hyundai Motor Group booth set up at the '2021 Hydrogen Mobility+ Show' held on the 8th at Kintex, Goyang, Gyeonggi Province. / Goyang - Photo by Jinhyung Kang aymsdream@

"Expecting a Leading Platform for the Hydrogen Ecosystem"
Value Chain Across Production, Distribution, and Utilization
Organic Cooperation Among Companies Essential... "Let's Accelerate the Hydrogen Society"

The Korea H2 Business Summit plans to hold an annual general meeting every September with all members participating to share major issues and current status and discuss cooperation plans. Through regular meetings, it will select key cooperative tasks by division such as technology, policy, and global cooperation, and derive detailed implementation plans. In the first half of each year, domestic and international investors will be invited to promote hydrogen-related investment activation.

Leading domestic companies have united with a shared purpose in the hydrogen business because it is an emerging industry that requires collaboration among players across various value chains due to the nature of the energy sector. The role of companies has become increasingly important in addressing environmental issues such as climate change, and the competition for leadership in new energy sources has intensified beyond borders. This is the background for the high expectations placed on this consultative body.

The Korean government has set the transition to a hydrogen society as a national agenda because the global energy industry paradigm is changing, and Korea is considered to have sufficient competitiveness. Fossil fuels centered on oil, which led the past century, are limited in resources and cannot escape environmental issues, inevitably reducing their usage.

Environmentally friendly renewable energies such as solar and wind power face many constraints including time and environment. In this situation, the role of companies is crucial to accelerate the transition to a hydrogen society. Since related infrastructure, workforce, and resources are still insufficient, companies can complement each other's shortcomings and compete in areas of strength to grow the overall market.

Global Attention on Hydrogen as Future Energy Source
"900 Global Hydrogen Projects"
Balanced Growth Across All Sectors Needed for Synergy

Especially, the entire value chain?from initial production to transportation, storage, distribution, and final utilization?must be organically connected to establish itself early. Oil, which drives modern society, was the same in its early days. Standard Oil, founded by Rockefeller in the late 19th century, was split into several companies under antitrust laws in the 20th century, and these companies competed with each other, laying the foundation for the modern oil industry. The market expanded significantly with the surge in oil demand due to Ford's automobiles.

According to the H2 Business Summit Secretariat, there are about 900 hydrogen value chain-related projects worldwide recently. Several large-scale plants producing green hydrogen, which emits no carbon dioxide, have begun construction. Hydrogen is classified by production process into green (no carbon emissions), blue (carbon dioxide generated but removed by capture technology), and gray (hydrogen produced as a byproduct in steel and chemical processes). Ultimately, green hydrogen is the final goal, but Korea is at a disadvantage due to geographical and environmental conditions. The focus on hydrogen utilization sectors only is also pointed out as a weakness.

SK Group Chairman Chey Tae-won is experiencing a kiosk at the SK booth set up at the '2021 Hydrogen Mobility+ Show' held on the 8th at KINTEX Exhibition Center 2 in Goyang, Gyeonggi Province. In the center is Chung Eui-sun, Chairman of Hyundai Motor Group. Photo by Kang Jin-hyung, Goyang aymsdream@

Hyundai Motor: "Hydrogen Beyond Mobility to Society at Large"
SK: "Aim to be Global No.1 Hydrogen Business by 2025"
POSCO, Hanwha, Hyosung Play Roles Across Hydrogen Value Chain

Earlier, the five groups leading this consultative body?Hyundai Motor, SK, POSCO, Hyosung, and Hanwha?committed to investing 43 trillion KRW across all hydrogen business sectors by 2030. With the formation of this consultative body, a channel for active communication during business promotion has been created, which is expected to generate synergy by avoiding indiscriminate overlapping investments and enabling selection and concentration. Hyundai Motor, which early on identified hydrogen as one of the next-generation mobility options and has emerged as the global No.1 player in hydrogen fuel cell vehicles, plans to actively promote hydrogen use beyond transportation to society at large. It already possesses outstanding technological capabilities in hydrogen utilization and consumption based on its expertise in fuel cells.

SK, the longest-standing energy company in Korea, has announced a vision to become the global No.1 in hydrogen business by 2025, covering the entire spectrum from hydrogen production to distribution and supply. It plans to maximize the use of infrastructure centered on existing refining and chemical plants in Incheon and Ulsan, while investing domestically and internationally to secure core technologies.

At the 2021 Hydrogen Mobility+ Show held on the 8th at KINTEX in Goyang, Gyeonggi Province, guests including Chey Tae-won (from the right) Chairman of SK Group, Chung Eui-sun Chairman of Hyundai Motor Group, Cho Hyun-sang Vice Chairman of Hyosung Group, Shin Dong-bin Chairman of Lotte Group, and Choi Jeong-woo Chairman of POSCO are touring the SKE&S exhibition hall.
Goyang - Photo by Kang Jin-hyung aymsdream@

The Incheon liquefied hydrogen plant, scheduled for completion by the year after next, will have an annual capacity of 30,000 tons. Considering that leading global companies like Linde and Air Liquide operate at about 10,000 tons annually, this is a considerable scale. In addition, SK E&S, which operates an existing liquefied natural gas (LNG) business, will establish a large-scale blue and green hydrogen production system.

POSCO has also positioned hydrogen as a key future growth engine for the group. It has set a goal to produce 5 million tons annually and achieve sales of 30 trillion KRW by 2050. The steel industry is known as one of the highest carbon-emitting sectors, and POSCO is developing new technologies such as hydrogen reduction steelmaking. Chairman Choi Jeong-woo of POSCO Group said, "POSCO must play a leading role in the nation's carbon neutrality," adding, "We will fundamentally innovate the steel manufacturing process by commercializing hydrogen reduction steelmaking."

Doosan Group also plans to secure core competencies related to hydrogen energy production and utilization and actively foster hydrogen business. Doosan Group Chairman Park Jeong-won said, "Doosan has led Korea's hydrogen power generation market in terms of hydrogen utilization and is expanding into areas such as turbines and drones," adding, "On the production side, we are securing core competencies in green hydrogen production and hydrogen liquefaction plants and plan to actively develop these areas." Hyundai Heavy Industries Group Vice Chairman Chung Ki-sun said, "Building an organic value chain is the most certain way to expand the hydrogen ecosystem," adding, "We will do our best to revitalize the hydrogen economy by leveraging the infrastructure of group affiliates and creating synergy with domestic companies."

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