Korea to Accelerate Transition to Hydrogen Economy Under Yoon Administration

By May 10, 2022 3   min read  (435 words)

May 10, 2022 |

Fuel Cells Works, Korea to Accelerate Transition to Hydrogen Economy Under Yoon Administration

By Park Jae-hyuk

The newly launched Yoon Suk-yeol administration is expected to speed up its efforts for Korea’s transition to a hydrogen economy, benefiting relevant companies such as Doosan Fuel Cell and Hyosung Advanced Materials, according to market analysts, Tuesday.

The hydrogen economy ― which, if based on green hydrogen, is regarded as a path to achieving carbon neutrality ― refers to an economy that relies on hydrogen as a commercial fuel.

When the presidential transition committee announced 110 national tasks last Tuesday, it vowed to stabilize the production and supply of “green” and “blue” hydrogen ― which refer to hydrogen generated by renewable energy and hydrogen produced from natural gas, respectively ― for Korea to become a global leader in the hydrogen industry.

“With the expanded use of various energy sources, such as renewable energies and hydrogen, we will enhance the self-sufficiency of energy and create more jobs,” the transition team said.

Eugene Investment & Securities analyst Han Byung-hwa expected the nation’s overall hydrogen industry to accelerate its growth, considering that the new Cabinet members have a solid understanding of the relevant businesses.

“The transition team also announced its plan to support hydrogen vehicles,” the analyst said.

After a revision to the Hydrogen Economy Promotion and Hydrogen Safety Management Act was passed by the National Assembly’s Trade, Industry, Energy, SMEs, and Startups Committee on May 4, uncertainties about the nation’s hydrogen industry have been reduced further.

The revised bill is intended to offer financial support to the hydrogen industry and to obligate electric utility companies to use green and blue hydrogen.

Domestic companies have been urging lawmakers to pass the revised bill, so that they can make investments under specific guidelines.

However, it has not been passed since being proposed last July.

“The delayed passage of the revised bill has caused concerns over the uncertainties about the industry,” the Federation of Korean Industries said in a statement. “For Korea to become among the top three leaders in clean energy technologies, the revised bill should be passed as soon as possible.”

Analysts expect that the revised bill will be passed in the National Assembly’s forthcoming plenary session without much difficulty, given that it was proposed by the Democratic Party of Korea, which holds the majority.

“Hydrogen-related stocks have shown sharp declines in their prices since the second half of last year, due to the delayed passage of the revised bill and uncertainties about the new government’s support of the industry,” Han said. “Now both problems have been resolved.”

SOURCE: The Korea Times

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