South Korea outlines hydrogen roadmap to boost industry

Market: Fertilizers, Hydrogen
10/11/22

South Korea is aiming to boost its hydrogen industry by creating large-scale domestic demand, developing relevant infrastructure and establishing a global supply chain.

The country's trade, industry and energy ministry Motie expects these measures to have an economic effect of 47.1 trillion South Korean won ($34.1bn) and to cut 28mn t of greenhouse gases by 2030, without specifying a baseline, it said on 9 November.

The ministry said South Korea's hydrogen policies were "initially limited" to areas like hydrogen cars and power generation fuel cells. The ministry added that this prevented the country from being as competitive as other developed nations in areas such as hydrogen production, storage and transportation.

Motie noted that the country's hydrogen ecosystem was "chiefly centered around grey hydrogen", resulting in an "insignificant" effect in greenhouse gas reduction. Gray hydrogen is produced from natural gas and is also a by-product of petrochemicals and steelmaking process, with no carbon abating measures.

The government plans to create large-scale hydrogen demand in the transportation, power generation and industrial sectors. South Korea aims to raise its supply of high-mobility vehicles such as hydrogen buses and trucks, with a goal of producing 30,000 hydrogen commercial vehicles and building 70 liquid hydrogen-refuelling stations in the country by 2030. The country also plans to utilise hydrogen and ammonia in its power generation, with a goal of achieving 7.1pc of clean hydrogen power generation by 2036. South Korean firm Posco in September revealed plans to introduce hydrogen co-firing power generation technology, in what the firm described as the country's first hydrogen hybrid power generation project, with an aim of generating over 950 GWh/yr.

South Korea also hopes to establish large-scale domestic and overseas production bases. The country recently launched its first large-scale hydrogen demonstration project in Jeju city, aiming to produce 1,176 t/yr of hydrogen at a 60pc utilisation rate.

There are also plans to develop infrastructure for distribution to ramp up clean hydrogen utilisation. This includes establishing a hydrogen power generation bidding market next year, enacting legislation for hydrogen business, and introducing a clean hydrogen certification system in 2024.

South Korea also plans to secure core technologies across the entire hydrogen value chain. This includes developing technologies in seven areas: water electrolysis, liquid hydrogen carriers, trailers, charging stations, fuel cell (mobility), fuel cell (power generation), and hydrogen turbines. Regulations that hamper businesses will be removed and domestic production will be commercialised for export to overseas markets. The country also hopes to foster 600 hydrogen-specialised companies by 2030 from the current 52 firms.

The country plans to build the world's largest liquid hydrogen plant and increase the number of liquefied refuelling stations. It will also build a 4mn t/yr ammonia receiving terminal and a 100,000 t/yr liquid hydrogen receiving terminal, as well as install a hydrogen-only pipeline network.

Supply chain agreements

Domestic companies are collaborating in the development of a clean ammonia supply for use in clean power generation in the country.

Manufacturer Samsung, conglomerates SK and Lotte, steelmaker Posco, and state-owned oil company KNOC agreed to co-operate in producing large volumes of clean ammonia overseas to supply South Korea's west coast. State-owned utilities Korea South-East Power and Korea Western Power will then use the ammonia in clean power generation.

South Korean chemical producer Lotte Fine Chemical last month announced it will import 50,000t of blue ammonia from Saudi Arabia by the end of this year. Lotte Chemical also signed a deal in October to develop supply chains for low-carbon hydrogen and ammonia, eyeing production facilities in Australia and Chile.

South Korean firms are also working to create a liquid hydrogen ecosystem. SK, conglomerate Hyosung and liquid hydrogen producer Hychangwon will build a liquid hydrogen plant and charging station, with automaker Hyundai Motor supplying hydrogen-powered commercial vehicles. Motie and other relevant ministries will also strengthen support for related policies to "foster an exemplary liquid hydrogen ecosystem", Motie said.

By Tng Yong Li

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

14/05/25

Aramco eyes stake in Australia's Louisiana LNG project

Sydney, 14 May (Argus) — Australian independent Woodside and Saudi state-owned oil firm Aramco have entered into an agreement for Aramco to possibly buy a stake in Woodside's 16.5mn t/yr Louisiana LNG project and to explore other opportunities, including lower-carbon ammonia. As part of the non-binding agreement, Aramco could buy an equity interest in and LNG offtake from its Louisiana LNG project, Woodside said without disclosing further details. This comes after Woodside reached a final investment decision on the project in late April. Woodside and Aramco signed the agreement in Riyadh in Saudi Arabia at the Saudi-US investment forum , which was attended by Arabian crown prince Mohammed bin Salman and US president Donald Trump. The collaboration shows Woodside's Louisiana project is generating interest among "high-quality potential investors," Woodside's CEO Meg O'Neill said, after selling 40pc of the project's infrastructure to US-based investment firm Stonepeak in early April. The agreement will also help the firm build a more diverse portfolio, as it branches into chemical production, O'Neill said. The firm's wholly-owned Beaumont New Ammonia project in Texas is expected to produce first ammonia in the second half of this year, and lower-carbon ammonia by the second half of next year. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

France mulls 1.5pc renewable H2 target for transport

13/05/25

News

13/05/25

France mulls 1.5pc renewable H2 target for transport

Paris, 13 May (Argus) — France has opened a consultation on a proposed 1.5pc renewable hydrogen quota for the transport sector by 2030, and hefty penalties to back this up. The country's ecological transition ministry has proposed a mechanism for reducing emissions in the transport sector called IRICC. This would replace the existing Tiruert system and would, among other measures, introduce specific quotas for use of renewable and low-carbon hydrogen. The proposed regulations set specific quotas for greenhouse gas (GHG) emissions reductions that fuel suppliers would have to meet across different transport sectors in 2026-35. In line with requirements of the EU's renewable energy directive (REDIII), it also sets specific sub-quotas for renewable fuels of non-biological origin (RFNBOs), which are effectively renewable hydrogen or derivatives. These would start at 0.1pc in 2026 and rise steadily to 1.5pc by 2030 and to 2pc by 2035. This does not factor in double-counting, which the EU rules allow, meaning the quotas should reflect the actual share of RFNBO supply delivered to the transport sector. France's target exceeds the minimum 1pc requirement under EU rules, which effectively constitute a minimum share of only 0.5pc when factoring in the possibility for double-counting. Some EU members have set more ambitious targets. Finland is aiming for a 4pc quota by 2030 . But others, like Denmark, are planning a less ambitious implementation of EU rules, which has drawn the ire of domestic hydrogen industry participants . France's proposed quota is not set in stone as it is seeking feedback on whether a 0.8pc quota would be preferable. The consultation text does not specify if Paris would allow renewable hydrogen used to make transport fuels in refineries to be counted towards the targets with or without a so-called correction factor. The document foresees specific targets for use of synthetic fuels "produced with low-carbon electricity" in the aviation and maritime sectors. For aviation these would be 1.2pc for 2030, 2pc for 2032 and 5pc for 2035 — broadly in line with mandates from the EU's ReFuelEU Aviation legislation. Crucially, these mandates can be fulfilled with renewable supply and with aviation fuels made with nuclear power. Unlike for other EU targets, the ReFuelEU Aviation rules provide this option, leaving France in a promising position to become a major producer of synthetic aviation fuels thanks to its large nuclear fleet. The EU has not yet set binding targets for synthetic fuels in the maritime sector, but the French proposal foresees quotas of 1.2pc for 2030 and 2pc for 2034. The new mechanism will arguably allow for trading of GHG emissions reduction and fuel supply credits, similar to Tiruert, although the consultation document does not detail this specifically. Hefty penalties Hefty penalties for non-compliance could ensure that obliged parties meet their quotas. The ministry is proposing a penalty of €80 ($89) for each GJ that fuel suppliers fall short of their RFNBO quotas. This would equate to around €9.60/kg, based on hydrogen's lower heating value of 120 MJ/kg. It is broadly in line with penalties set by the Czech Republic , but considerably higher than those in Finland. Crucially, the penalties would be in addition to potential fines for falling short of the larger GHG emissions reduction targets. Companies could additionally incur penalties of €700/tonne of CO2 they fail to avoid short of their requirements. Stakeholders can respond to the consultation until 10 June. By Stefan Krumpelmann and Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Ethiopia’s EABC still needs up to 400,000t DAP in 2025

09/05/25

News

09/05/25

Ethiopia’s EABC still needs up to 400,000t DAP in 2025

London, 9 May (Argus) — Ethiopian Agricultural Businesses (EABC) will close a tender to buy 425,390t of DAP on 13 May. Argus estimates it needs to secure the majority of this volume to meet the country's phosphates demand for the 2025 application season. Across all tenders to buy DAP that EABC opened between August 2024-May 2025, the importer awarded 1.16mn t across 18 cargoes. Of this awarded total, Argus estimates only up to 750,000t is likely to be delivered to Ethiopia in a timely manner. This is because some of these awarded cargoes — largely Chinese — did not have firm backing from producers. And the bulk of the awarded Chinese cargoes — which made up almost half of all the awarded cargoes — were not shipped while Chinese producers focused on covering domestic demand. In recent years, Ethiopia had imported phosphate in the form of NPS and NPSB through EABC tenders, generally all from Morocco. But in August 2024, ahead of the 2025 domestic season, EABC switched from importing NPS to asking for DAP 18-46. In its last tender to buy NPS, issued in August 2023, EABC asked for around 1mn t of NPSB and 332,000t of NPS containing 37.7pc and 38pc P2O5, respectively. On a P2O5 basis, the 2023 NPS tender asked for a total of around 1.1mn t of DAP-equivalent. This implies EABC needs to line up a further 350,000-400,000t of DAP, assuming a similar demand for P2O5 as last year. Argus line-up data shows 1.046mn t of NPS shipped from Morocco's Jorf Lasfar to Djibouti in the 12 months following August 2023. On a P2O5 basis, this is probably equivalent to only around 900,000t of DAP. EABC would need to buy 150,000-200,000t more to reach this level. Chinese DAP will probably dominate offers into EABC's 13 May tender. After a hiatus of around six months, Chinese suppliers will likely be able to apply for customs inspections under the CIQ system from mid-May for DAP and MAP cargoes. This implies Chinese DAP exports will resume from as early as late May, in time to meet EABC's requirements. Time running out for Ethiopia's season EABC is likely to struggle to secure the remaining DAP needed before the end of Ethiopia's domestic season. Planting during Ethiopia's Meher — the main rainy season — broadly spans from March to June. In its latest tender to buy DAP, closing on 13 May, EABC asked for a loading period up to mid-July. In 2024, the final cargoes under EABC's 2023-24 tender to buy NPS had already arrived in Djibouti by that time. Under the 23 April and 13 May EABC tenders, cargoes loading in June — particularly from closer origins like Saudi Arabia — could still arrive in time to service the tail end of Ethiopia's DAP season. But the bulk of the country's application season will likely have been missed by then. EABC's next tenders will likely be targeting supply for the 2026 domestic season. DAP is more expensive Tender awards are limited by EABC's allocation of funds for DAP before offers are collected. The importer received eight 60,000t offers ranging from $696.27-748.00/t fob with 30 days of credit in its 23 April tender, and awarded only the lowest offer before scrapping the tender and issuing a fresh one. It rejected revised offers in its 20 February and 25 March tenders, which were above its counterbids at $625/t fob and $647.19/t fob, respectively. Awards in the 13 May tender will likely remain difficult because prices in the global DAP market have risen. DAP prices in India — the global DAP benchmark and a key competitor to Ethiopia — are now around $720/t cfr, up significantly from $590/t cfr at the beginning of August 2024. DAP could go elsewhere Any DAP which Ethiopia does not acquire will find willing buyers elsewhere in south and southeast Asia. India began May with around 1.64mn t of DAP in stock — well below a comfortable 2mn t minimum — and will need to boost imports to build its inventories. Bangladesh will likely issue a private-sector tender in the coming weeks, probably seeking around 500,000t or more of DAP. China is traditionally its main supplier, especially through its private-sector tenders. Demand in southeast Asia has generally seen an uptick because of high rainfall, and many buyers have been holding out for the resumption of Chinese exports. DAP prices have reached $700-715/t cfr southeast Asia on latest sales, but offers are climbing higher. And Pakistan will likely step into the import market to secure tonnes for July-August arrival, ahead of the peak of its domestic season from the end of the third quarter. EABC received offers for Jordanian and Saudi Arabian DAP loading in May in its 23 April tender. It rejected the offers, allowing India to buy probably the same cargoes at $719.50/t cfr earlier this month. By Adrien Seewald Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Brazil's inflation accelerates to 5.53pc in April

09/05/25

News

09/05/25

Brazil's inflation accelerates to 5.53pc in April

Sao Paulo, 9 May (Argus) — Brazil's annualized inflation rate rose to 5.53pc in April, accelerating for a third month despite six central bank rate hikes since September aimed at cooling the economy. The country's annualized inflation accelerated from 5.48pc in March and 5.06pc in February, according to government statistics agency IBGE. Food and beverages rose by an annual 7.81pc, up from 7.68pc in March. Ground coffee increased at an annual 80.2pc, accelerating from 77.78pc in the month prior. Still, soybean oil prices decelerated to 22.83pc in April from 24.36pc in March. Domestic power consumption costs rose to 0.71pc from 0.33pc a month earlier. Transportation costs decelerated to 5.49pc from 6.05pc in March. Gasoline prices slowed to a 8.86pc gain from 10.89pc a month earlier. The increase in ethanol and diesel prices decelerated as well to 13.9pc and 6.42pc in April from 20.08pc and 8.13pc in March, respectively. The hike in compressed natural gas prices (CNG) fell to 3.5pc from 3.92pc a month prior. Inflation posted the seventh consecutive monthly increase above the central bank's goal of 3pc, with tolerance of 1.5 percentage point above or below. Brazil's central bank increased its target interest rate for the sixth time in a row to 14.75pc on 7 May. The bank has been trying to counter soaring inflation as it has recently changed the way it tracks its goal. Monthly cooldown But Brazil's monthly inflation decelerated to 0.43pc in April from a 0.56pc gain in March. Food and beverages decelerated on a monthly basis to 0.82pc in April from a 1.17pc increase a month earlier, according to IBGE. Housing costs also decelerated to 0.24pc from 0.14pc in March. Transportation costs contracted by 0.38pc and posted the largest monthly contraction in April. Diesel prices posted the largest contraction at 1.27pc in April. Petrobras made three diesel price readjustments in April-May. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Minister eyes German energy transition 'reality check'

09/05/25

News

09/05/25

Minister eyes German energy transition 'reality check'

London, 9 May (Argus) — Germany's energy transition needs a "reality check", the country's new energy minister Katherina Reiche has said, stating that the government will prioritise security of power supply over climate protection. The government must strike the right balance between climate protection, security of supply and costs, Reiche said at the Ludwig Erhard Summit earlier today, arguing that the focus in recent years has been disproportionately on the former. The new government will put security of supply "first", while also focusing on keeping system costs — such as redispatch and grid expansion costs, which previous governments "underestimated" — as low as possible. The government is aiming to "quickly" hold tenders for the construction of "at least" 20GW of new gas-fired capacity, Reiche said, citing the recent blackout in the Iberian peninsula as evidence that Germany cannot become complacent over its power supply. While she acknowledged that the reasons for the blackout are not yet fully determined, she said that a lack of inertia in the power system is likely to have contributed to it, and that more flexible gas-fired plants "could have helped" Spain avoid the blackout. She called for Germany to agree "long-term delivery contracts" for natural gas, to ensure security of supply in the coming years. And Reiche emphasised the importance of "technology openness", particularly when it comes to Germany reaching its goal of becoming climate-neutral by 2045. There may be new technologies that are yet to be invented or fully harnessed that could aid the country in fulfilling its goal, she noted. Hydrogen has the potential to play a role in a "mix" of other technologies in the energy transition, she said, but the expectations for it have become too high for a product that is "not even on the market". Reiche also called for more patience with regard to electrification in Germany, stating that "the transformation of an entire economy [to become climate friendly] in a linear, year-on-year path is not feasible". And the minister reiterated previous CDU/CSU-SPD coalition pledges to reduce the electricity tax and to introduce an industry power price. CDU party member Reiche became the new energy minister on Tuesday, when CDU leader Friedrich Merz was voted in as chancellor, replacing the SPD's Olaf Scholz. By John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more