Korea to accelerate shift to hydrogen economy in new gov’t

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.