Changwon City Liquefied Hydrogen Special Committee: "We Will Hold Responsible for the Liquefied Hydrogen Gate"

The Special Committee for Administrative Investigation on the Liquefied Hydrogen Plant Project in Changwon Special City, Gyeongnam, referred to the project as the "Liquefied Hydrogen Gate" and raised suspicions of project mismanagement.

On the 20th, the special committee held its 4th meeting, received business reports related to the project from relevant departments and the Changwon Industry Promotion Agency, and then visited the project site to comprehensively review the project plan, implementation process, budget execution, and technology development status.

The Special Committee on Administrative Affairs Investigation for the Liquefied Hydrogen Plant Project in Changwon-si, Gyeongnam, is visiting the project site to receive explanations. Provided by Changwon Special City Council

The committee stated, "Through the business report, it was found that the project goal had shifted from domestic production of core technology to a profit-driven business, and there was an issue of illegal formation of investment funds in violation of the Local Finance Act."

They added, "There was also a problem with the procurement of 71 billion KRW in project financing (PF) loans, where Changwon City provided collateral, neglected feasibility reviews required by the Local Finance Act, and received investment screening containing false information."

They also pointed out ▲ the awarding of a contract without verification for 81.4 billion KRW for plant construction service costs proposed by a specific company instead of a fair cost calculation process ▲ and the granting of special favors such as exemption from delay penalties by processing completion without essential test procedures like liquefied hydrogen plant commissioning and performance testing.

The committee claimed, "Due to such irregular and illegal project promotion, the start of commercial operation scheduled for January next year is uncertain, and profit generation is impossible. Due to reckless management, the project costs have exceeded the PF loan of 71 billion KRW, and as of November 2024, the project is facing a practical default situation."

They further stated, "We define this project, which was illegally promoted with citizens' tax money during the 7th elected term under former Mayor Heo Seong-mu, as the Liquefied Hydrogen Gate. We will investigate various previously undisclosed problems and corruption according to laws and principles, report the results, and hold responsible parties accountable."

The country's first hydrogen liquefaction plant was completed at Doosan Enerbility's Changwon factory in Gyeongnam. Photo by Gyeongnam Provincial Government

The Changwon City Liquefied Hydrogen Plant Project was initiated during the tenure of the previous Changwon mayor to build a hydrogen industry ecosystem, highlight the image of an eco-friendly city, create a 30-year food source for Changwon City, and secure new growth engines.

The plant, completed on January 31 this year, is operated by HiChangwon, a special purpose corporation established in April 2020 through joint investment by the Changwon Industry Promotion Agency, Doosan Enerbility, and the Korea Industrial Complex Corporation.

With a total project cost of 105 billion KRW, the plant, the first of its kind completed domestically in January this year, is equipped to produce 1,825 tons of liquefied hydrogen annually and was planned to supply nearby research institutes, companies, and hydrogen charging stations. However, it has been criticized for lack of sales channels, low operating rates, and excessive operating costs.

The special committee consists of six members from the People Power Party, with all Democratic Party members completely absent, and will operate until December 20.

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