'Clean Hydrogen' Gaining Attention for Carbon Neutrality... "Ecosystem Formation is Key"

"Emerging as a More Economical Energy Source than LNG"

[Asia Economy Reporter Oh Hyung-gil] As the government pushes for mandatory use of 'clean hydrogen' to achieve carbon neutrality by 2050, attention is increasingly focused on fostering the clean hydrogen ecosystem.

Clean hydrogen consists of 'green hydrogen,' which is clean hydrogen obtained by electrolyzing water using electricity generated from renewable energy, and 'blue hydrogen,' which is produced from carbon dioxide at refining and chemical plants.

According to an analysis by global energy market research firm Bloomberg New Energy Finance (BNEF), by 2030, the production cost of green hydrogen in the Middle East, South America, and Australia is expected to fall to less than one-fifth of current levels, and by 2040, it is anticipated to emerge as a more economical energy source than liquefied natural gas (LNG).

In particular, it is forecasted that over the next decade, industrial use will account for more than half of the 75 million tons of clean hydrogen demand, becoming the largest demand sector.

Kim Young-hoon, a research fellow at POSCO Research Institute, stated in a recent report, "Industrial hydrogen can create synergies with transportation and power generation hydrogen during demand development, and it is strategically easy to utilize in countries with strong manufacturing sectors like Korea." He added, "In countries like Korea and Japan that need to import hydrogen, industrial hydrogen can be leveraged to import transportation and power generation hydrogen as a package, enabling strong purchasing power."

He also predicted that clean hydrogen will be used in carbon-intensive industries such as steel, refining, petrochemicals, cement, and industrial furnaces.

In the steel sector, the introduction of hydrogen reduction steelmaking processes, which fundamentally change the blast furnace steelmaking process, is expected to reduce carbon emissions by 96% and increase hydrogen utilization. In the refining sector, hydrogen used in existing desulfurization processes will be replaced with clean hydrogen, and hydrogen is expected to be used in the development of eco-friendly alternative fuels as a new business.

In petrochemicals, crude oil naphtha will be replaced with bio-naphtha, eco-friendly chemical products will be produced, and clean hydrogen generated during the bio-naphtha cracking process is expected to be recycled internally.

In the cement industry, hydrogen or ammonia can be used as auxiliary fuels to replace bituminous coal, the fuel for limestone kilns, and in industrial furnaces, hydrogen or ammonia can be used as low-carbon alternative fuels.

Research fellow Kim said, "The use of clean hydrogen is being considered mainly in five major industries, and over the next decade, focus will be on technology verification through demonstration projects, with full-scale utilization expected to expand after 2030."

Meanwhile, the government announced last year the introduction of a 'Clean Hydrogen Certification System' as a foundation to provide incentives and impose obligations related to clean hydrogen. To expand the distribution of fuel cells using clean hydrogen, the government plans to introduce the 'Clean Hydrogen Power Generation Obligation System' (CHPS), which separates fuel cells from the Renewable Portfolio Standard (RPS) and provides separate support.

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