After Regime Change, Gas Corporation Temporarily Suspends Australian Green Hydrogen Project After One Year of Preparation...

Gas Corporation's Australian Subsidiary Removes 'Green Hydrogen Production' from Business Objectives
Dedicated Staff Dispatched from Headquarters Also Return

Korea Gas Corporation adjusted its Australian green (clean) hydrogen project. After one year of preparing the project, it returned the dedicated personnel without any significant achievements.

A Gas Corporation official said on the 18th, "Due to immature technologies related to liquefied hydrogen transport ships and large-scale onshore tanks, as well as uncertainties in demand forecasting, the timing for establishing an overseas clean hydrogen value chain is unclear," adding, "The dedicated personnel dispatched in the fourth quarter of last year were recently recalled."

Previously, the Moon Jae-in administration selected the 'hydrogen economy' as one of the three major strategic investment areas in August 2018 and announced the 'Hydrogen Economy Activation Roadmap' in January 2019, aiming to become a world-leading hydrogen economy nation. At that time, the government planned to increase the number of hydrogen passenger cars from about 1,800 units (cumulative) in 2018 to 81,000 units in 2022 and 6.2 million units by 2040, and expand hydrogen charging stations from 14 in 2018 to 310 in 2022 and 1,200 by 2040. Additionally, it aimed to secure water electrolysis technology that produces hydrogen using electricity generated from renewable energy sources such as solar and wind power in the long term, and to ensure stable hydrogen supply and demand through overseas production bases and hydrogen production and import.

KOGAS began actively pursuing overseas green hydrogen acquisition in March last year during the tenure of President Chae Hee-bong. Former President Chae visited Australia to secure local partners in various fields such as renewable energy and water electrolysis related to overseas green hydrogen production and to explore business cooperation opportunities. He also formed the 'Australia Clean Hydrogen Project Dedicated Task Force (TF).' It was judged that producing green hydrogen in Australia would be relatively inexpensive by utilizing abundant renewable energy sources (solar and wind) and that the liquefied hydrogen transport distance would be short. At that time, KOGAS stated, "The acquisition of Australian green hydrogen has become visible," and "We will actively proceed with a feasibility study on the introduction and investment projects of green hydrogen in Australia following the business trip."

In the same year, KOGAS added 'promotion of overseas clean hydrogen projects' to the purpose of its Australian subsidiary at the board meeting and dispatched two personnel from headquarters to prepare for feasibility study service providers for promoting hydrogen projects locally in Australia.

However, the situation changed rapidly this year. KOGAS decided to adjust investment projects such as overseas clean hydrogen projects to respond to the increased national heating cost burden caused by the sharp rise in liquefied natural gas (LNG) import prices triggered by the Russia-Ukraine war earlier this year and to address the financial structure crisis of KOGAS. President Choi Yeon-hye reorganized the business structure into a performance-centered one through 'selection and concentration,' merging the 'Hydrogen Business Headquarters,' established during the previous president's term, with the 'New Growth Business Headquarters.'

Ultimately, KOGAS decided to discontinue the green hydrogen project through its Australian subsidiary after one year. In June this year, the board of directors removed 'promotion of overseas clean hydrogen projects' from the purpose of the Australian subsidiary. Although two personnel were dispatched at the end of last year to prepare for feasibility study service providers for promoting hydrogen projects in Australia, KOGAS explained that this was a measure following the decision to conduct only an internal review by the end of the second quarter of this year.

A KOGAS official said, "The green hydrogen market's maturity is not progressing as quickly as expected, so we decided to put it on hold for the time being," adding, "We plan to conduct an internal basic investigation of hydrogen projects and reset the direction for overseas hydrogen acquisition in the future."

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