"Korean Hydrogen Technology Patents at One-Fifth of China's Level... Urgent Measures Needed"

proposes '5 Key Policy Directions for Fostering Hydrogen Ecosystem' to Next Government
Points out Low Implementation Rate of Hydrogen Roadmap and Lagging Global Competition

[Asia Economy Reporter Lee Hye-young] There are concerns that the major policies related to the hydrogen economy being promoted by the government are not progressing as quickly as expected. Given the high dependence on imported core components, voices are calling for the new government to actively support policies to foster the hydrogen ecosystem.

The Federation of Korean Industries (FKI) released a report titled "Current Status and Policy Directions of the Hydrogen Economy Ecosystem" on the 12th, presenting five key policy directions to nurture the hydrogen ecosystem. Specifically, they identified securing continuity in hydrogen policies, establishing a hydrogen exchange, forming global partnerships, expanding government support, and expanding infrastructure as the main policy initiatives to stimulate related demand.

According to the FKI's analysis, the implementation rate of the hydrogen economy roadmap announced by the government in 2019 has been lower than expected.

The roadmap set a target of 65,000 cumulative hydrogen passenger vehicles by 2022, but as of November this year, only about 17,000 vehicles have been supplied, which is 27% of the target. The schedule for the deployment of core infrastructure, hydrogen charging stations, also reached only 38% of the goal. To approach the government’s target, 310 charging stations need to be operational from next year, but as of November this year, only 117 stations are in operation.

(Source=Federation of Korean Industries)

Hydrogen prices are also far from the target. The government’s planned hydrogen price target for next year is 6,000 KRW per kilogram, but the current price remains around 8,400 KRW, not much different from the price at the time the roadmap was announced two years ago.

The self-reliance in core components and materials of the hydrogen industry still has a long way to go. The dependence on major components and materials remains high. Carbon fiber and platinum catalysts, considered core materials for hydrogen vehicles, are mostly supplied by Japan’s Toray and Kyocera, respectively. Membrane films are also sourced from companies like DuPont and Gore in the United States. The FKI argued that to overcome this situation, it is urgent to secure added value, increase the localization rate of core components (materials, parts, equipment), and acquire fundamental technologies.

In terms of hydrogen technology patent registrations, Korea is lagging behind major countries. The gap with China, in particular, is widening.

The number of patents in hydrogen technology among six major countries (China, the United States, the EU, Japan, Korea, and Germany) has increased at an average annual rate of 13.9% since 2014. In the fields of hydrogen production and fuel cells (cumulative from 2014 to 2020), Korea ranks fifth globally. Considering that these six major countries, including the EU, dominate most of the global hydrogen market, this means Korea is in the lower tier among actual competitors. The cumulative ranking is China, the United States, the EU, and Japan in that order.

Looking at the number of patents by year, China surpassed the United States in 2017 to take first place and has been widening the gap since. In 2020, Korea registered 1,033 patents, surpassing Japan’s 974 to rise to fourth place, but this is only about 21.9% of China’s 4,721 patents.

China’s aggressive moves to dominate hydrogen technology are closely linked to government support. According to the International Energy Agency (IEA), global R&D investment in hydrogen has been increasing since 2017, with China’s government hydrogen technology R&D budget in 2019 surging sixfold compared to the previous year. The FKI analyzed that the rapid increase in China’s patent numbers is also due to government-level support.

Accordingly, the FKI suggested that it is time for the government to take a strategic approach to foster the hydrogen ecosystem, urging the next government to activate the hydrogen economy based on the five key policy directions.

The FKI stated, "The hydrogen economy is an important strategic pillar for achieving carbon neutrality," and proposed that "the next government should also select hydrogen economy activation as a major national agenda to ensure policy continuity." They added, "Since the hydrogen ecosystem carries significant risks and the probability of success is not high, entering the hydrogen industry itself is a venture investment from the perspective of companies," emphasizing that "active government support is essential."

They also emphasized the need to establish a hydrogen exchange to support stable import, distribution, trading, and dispute resolution, and to lay the foundation to lead in global standard competition.

To this end, they argued that hydrogen technology should be designated as a 'national strategic technology,' expanding tax credits for facility investment and R&D expenses, and considering measures such as fully supporting hydrogen vehicle purchase subsidies with national funds. They also pointed out that although Korean companies are gradually increasing their presence in hydrogen production, storage, and transportation sectors, progress in utilization is slow, so national-level attention is necessary.

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