Ministry of Industry to Invest 30% of R&D Budget in Carbon Neutrality by 2030

Support for Development of Decarbonized Processes and Zero-Carbon Power Generation and Transition Technologies in the Industrial Sector

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will pour more than 30% of the Ministry of Trade, Industry and Energy's research and development (R&D) budget into carbon neutrality by 2030. Next year's carbon neutrality R&D budget is set at 1.2 trillion won, an increase of more than 50% compared to this year's 800 billion won. Through this, the plan is to support the decarbonization processes in the industrial sector and the expansion of zero-carbon power generation and energy transition technology development in the energy sector, driving the achievement of carbon neutrality by 2050.

The Ministry of Trade, Industry and Energy held the '2nd Carbon Neutral Industrial Transition Promotion Committee' at the Korea Chamber of Commerce and Industry on the 17th and announced these measures.

At this meeting, industrial sector proposals for carbon neutrality implementation were collected, and as the first step of specific support policies, the 'Vision and Strategy for the Great Industrial Transition to Carbon Neutrality' and the 'Carbon Neutral Industry and Energy R&D Strategy' were discussed. Attendees requested active government support such as strengthening carbon neutrality R&D and tax support for the industrial sector's carbon neutrality implementation, stable supply of new renewable energy, and expansion of resource circulation.

In the industrial sector, support will be provided for carbon neutrality technology development in steel, petrochemicals, cement, refining, semiconductors and displays, general industries (textiles, paper, etc.), and common industrial equipment (boilers, electric motors, etc.).

In the case of steel, under the goal of converting carbon-based processes such as blast furnaces and basic oxygen furnaces to 100% hydrogen reduction steelmaking, the first phase by 2030 will promote the development of basic melting technology for hydrogen reduction.

In the petrochemical sector, the goal is to convert naphtha cracking furnaces to electrically heated cracking processes, and in cement, R&D will be conducted step-by-step to change the calcination process to an eco-friendly new heat source. In the transportation sector, commercialization of carbon-neutral alternative fuels related to eco-friendly vehicles and commercialization of zero-carbon ships powered by hydrogen and ammonia are the goals.

In the energy sector, investments will be made in zero-carbon power generation based on clean fuels, scaling and efficiency improvement of renewable energy, and hydrogenation, flexibilization, and high-efficiency technologies.

Additionally, the Ministry of Trade, Industry and Energy plans to conduct large-scale preliminary feasibility studies for fields requiring large-scale technology development and utilize climate response funds. In this regard, last month, a technical evaluation was passed for a preliminary feasibility study project worth 6.7 trillion won for core carbon-neutral industrial technology development.

The ministry also plans to reorganize the R&D support system to focus on performance, field, and international joint R&D. To develop technology centered on carbon reduction performance, carbon neutrality targets will be set for core technologies, and large-scale R&D will be conducted by forming R&D consortia involving top experts from industry, academia, and research institutes, with demand companies as the overall lead institutions. An industry-specific 'Grand Consortium' integrating and linking these consortia will be introduced to promote technology exchange and mutual cooperation among executing organizations.

Furthermore, international joint R&D will be revitalized by expanding joint funding-type R&D with technology-leading countries such as the United States, the United Kingdom, and Germany.

Regarding support for carbon neutrality technology development, a technology innovation fund will be established to promote private investment, and a carbon neutrality technology value evaluation model will also be developed.

Minister of Trade, Industry and Energy Moon Seung-wook said, "The vision and strategy for the great industrial transition to carbon neutrality, which includes the government's policy and financial full support measures, will be further reviewed and supplemented based on the suggestions received today, and the final version will be announced in December. We will also steadily promote R&D preliminary feasibility study projects for breakthrough innovation, expand tax and financial support for carbon neutrality, and establish a system to monitor and flexibly respond to global supply chain issues arising from the low-carbon economic transition."

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