[Public Voices] Dreaming of Becoming the World's Leading Hydrogen Industry Powerhouse

World Leader in Hydrogen Utilization
Gap with Advanced Countries in Production and Distribution
Goal to Leap Forward with 3 Major Implementation Strategies

Amid the climate change crisis, the world was rushing toward carbon neutrality but has been thrown into turmoil by the Russia-Ukraine war. Countries, feeling the unstable energy supply as a greater crisis, have revised their energy policies. In particular, Europe, which heavily depended on Russian gas, has even restarted coal power plants.

For now, to get through the cold winter and respond quickly to the energy crisis, temporarily returning to the carbon era is inevitable. However, if the climate change issue is postponed under this pretext, it could lead to greater costs and consequences. It is necessary to prepare in advance to secure eco-friendly energy sources that can provide stable supply in the long term.

Europe set an annual production target for green hydrogen at 20 million tons, more than four times higher than the previous strategy, in the REPowerEU plan established for energy self-sufficiency. The United States announced through the Inflation Reduction Act (IRA) that it will actively support the hydrogen-related industry by providing tax credits and subsidies across the hydrogen ecosystem. Many countries are seeking hydrogen as a means to simultaneously solve carbon neutrality and energy security.

South Korea, having prepared for the hydrogen economy relatively early, has secured a globally leading position in hydrogen utilization fields such as hydrogen passenger cars and fuel cells for power generation. However, there is a gap with advanced countries like Japan and Europe in hydrogen production and distribution sectors. Also, since hydrogen production still emits carbon, it has not been free from criticism that it is not truly an eco-friendly energy.

The new government included "Establishing a clean hydrogen supply chain and fostering the world’s number one hydrogen industry" as a national agenda to overcome the limitations of Korea’s hydrogen economy and improve its overall structure. On the 9th of this month, it announced the 3UP strategy to achieve this goal.

First, Scale-up means expanding the scale and scope of Korea’s hydrogen economy. Plans include building large-scale clean hydrogen production bases domestically and abroad to ensure smooth supply of clean hydrogen. To create large-scale clean hydrogen demand, the ecosystem will be expanded from passenger cars to commercial vehicles such as buses and trucks, and from fuel cells to large power generators.

Second, Build-up refers to improvements in infrastructure and systems. The current gaseous transportation method will be shifted to a liquefied method that allows efficient and large-volume distribution. Facilities for importing ammonia and liquefied hydrogen, as well as hydrogen pipeline networks, will be established for overseas clean hydrogen imports. Additionally, a hydrogen power generation bidding market will be opened, and with the enactment of the Hydrogen Business Act and implementation of a clean hydrogen certification system, an institutional foundation for creating a clean hydrogen ecosystem will be established.

Third, Level-up is the advancement of industry and technology. It includes plans to foster new growth engines to leap forward as a leading hydrogen industry nation. Focused support will be given to key areas covering the entire hydrogen cycle such as water electrolysis, liquefied hydrogen transport ships, and hydrogen turbines. After securing track records through demonstrations, full-scale overseas exports will be promoted. By 2030, 600 hydrogen-specialized companies will also be nurtured.

The hydrogen economy has just entered the early growth stage. Based on the three major implementation strategies for hydrogen economy transition, South Korea will take a step forward. The government will closely examine systems and provide seamless policy support to ensure that investments by Korean companies are well realized. With public and private cooperation, it is expected that South Korea will soon become the world’s undisputed number one hydrogen industry powerhouse.

Park Il-jun, 2nd Vice Minister of the Ministry of Trade, Industry and Energy

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