Pohang City Achieves Milestone as Final Candidate for Distributed Energy Specialized Region

World's First "Clean Ammonia-Based Carbon-Free Power Generation" Demonstration Begins in Earnest
Mayor Lee Kangdeok: "Foundation Laid for Pohang to Become a Leading Carbon-Neutral City"

Pohang City has taken a significant step closer to leading the next-generation energy industry, having been selected on May 21 as a final candidate site in the Ministry of Trade, Industry and Energy's "Distributed Energy Specialized Region" competition.

The Ministry of Trade, Industry and Energy selected seven regions, including Pohang, Busan, Ulsan, and Jeju, as final candidate sites for specialized regions. The final selection will be made through a review by the Energy Committee in June.

The project proposed by Pohang City is a new industrial-type distributed energy zone, featuring the world's first "clean ammonia-based carbon-free distributed energy demonstration and commercialization" as its core model.

The strategy is to establish ammonia-based hydrogen engine power generation facilities centered around the Yeongilman Industrial Complex and supply carbon-free electricity to secondary battery companies, thereby creating an eco-friendly industrial infrastructure.

This initiative is expected to greatly help strengthen the global competitiveness of local export companies by enabling the use of carbon-free electricity ahead of the European Union's Carbon Border Adjustment Mechanism (CBAM), which will be implemented in 2026.

Since March last year, the city has proactively launched a research project to establish a "Distributed Energy Specialized Region Plan." Pohang has worked closely with North Gyeongsang Province, holding multiple strategic meetings and expert consultations to refine the business model.

In addition, the city has formed the "Haeoreum Alliance Pohang Carbon-Free Energy Council," which includes POSTECH, GS E&C, Amogy, HD Hyundai Infracore, and EcoproHN, bringing together public, private, academic, and industrial sectors to accelerate the establishment of a distributed energy infrastructure.

Pohang City plans to work even more closely with North Gyeongsang Province and, centered around the carbon-free energy council, collaborate with public, private, academic, and industrial partners to create a sustainable energy ecosystem.

Mayor Lee Kangdeok stated, "The selection of Pohang as a candidate for the distributed energy specialized region marks a turning point for Pohang to become a leading eco-friendly industrial city in the era of carbon neutrality." He emphasized, "The clean ammonia-based carbon-free power demonstration project is an innovative initiative being attempted for the first time in the world and will provide our local export companies with an opportunity to proactively respond to carbon border taxes."

Pohang Distributed Energy Specialized Business Model.

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