Hydrogen Industry Competition Intensifies... Expansion of Korean Policy Resources Needed

[Asia Economy Reporter Yoo Hyun-seok] Due to the Russia-Ukraine war, European countries are fostering the hydrogen industry to reduce their dependence on Russian energy, and there are claims that South Korea also needs government-level support to develop the industry.

According to the Korea Automobile Manufacturers Association (KAMA), on the 16th, KAMA Chairman Jeong Manki stated this during a meeting with Korean companies participating in 'HyVolution 2022,' held in Paris, France, from the 11th to 12th (local time).

Chairman Jeong Manki of KAMA said, "In recent years, South Korea has been leading in the hydrogen sector, especially in hydrogen vehicles, to an extent recognized by Europe," but emphasized, "With carbon neutrality and the recent Russia-Ukraine war, European countries are aggressively fostering the hydrogen industry, and as international competition intensifies, our position may be diminished."

HyVolution is France's largest B2B exhibition for hydrogen industry companies. The Hydrogen Mobility+ Show organizing committee, in collaboration with KOTRA, formed a Korean pavilion with 11 domestic institutions and companies participating in the event.

At this HyVolution event, Jeong Manki, chairman of the Hydrogen Mobility+ Show organizing committee and KAMA, stated in a forum keynote presentation, "South Korea is leading in hydrogen utilization industries such as hydrogen vehicles and hydrogen fuel cells, ranking third worldwide in patent applications," but diagnosed, "However, in hydrogen production, storage, and transportation, the technology and industrial base, such as water electrolysis technology, remain weak."

He explained, "On the other hand, Europe, including France, is only now beginning to pay serious attention to hydrogen utilization industries, with companies like Renault starting to develop hydrogen electric vehicles," adding, "Considering Europe's long experience and technological accumulation in hydrogen production and storage, both sides have a complementary relationship."

He continued, "There are many opportunities for mutual cooperation at the corporate, industrial, and national levels, and since South Korea's new government is expected to spare no policy support to leap to the world's number one hydrogen industry, European companies including those in France will gain many new cooperation opportunities with Korea."

European representatives also emphasized in meetings with European businesspeople and individual interviews that the Russia-Ukraine war has made Europeans recognize the importance of the hydrogen industry to reduce supply chain and energy dependence. They particularly explained the need to expand cooperation with Korea, a strong Asian hydrogen utilization industry power.

Tony Melfi, head of Audi Brussels, said, "Due to the Russia-Ukraine war, German automakers are experiencing disruptions in supplies such as wiring harnesses from Ukraine," and expressed concern, "Energy companies are highlighting the excessive dependence on Russian fossil fuels like gas and oil as a major problem."

Mika Mered, professor at Paris Sciences Po, explained, "France and Korea are among the most actively pursuing hydrogen industry strategies worldwide, and both countries need to actively build the hydrogen value chain," adding, "France's advantage lies in having a comprehensive industrial ecosystem for the hydrogen industry, including major energy companies like Air Liquide, Arkema, ENGIE, startups, and R&D institutes."

Meanwhile, during the 'Korean Businesspeople Meeting' hosted by the Hydrogen Mobility+ Show organizing committee during the exhibition, Korean businesspeople expressed opinions such as, "In our case, the government and National Assembly are making efforts to foster the hydrogen industry, including the enactment of the Hydrogen Economy Act," but also noted, "As related laws are enacted, regulations are increasing, and there is concern that such legislation may rather suppress industrial development, so urgent improvements are needed."

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