S Korea outlines clean hydrogen certification system

Market: Hydrogen
18/04/23

South Korea outlined its clean hydrogen certification system at a briefing session on 17 April, with a proposed emissions standard for clean hydrogen and support measures.

The clean hydrogen certification system will certify that greenhouse gas (GHG) emissions in the process of producing or importing hydrogen were below a certain level and will support incentives, according to the country's trade and industry ministry (Motie).

Motie noted that other countries have also been promoting clean hydrogen through their policies, such as the US' Inflation Reduction Act (IRA) that provides tax credits for clean hydrogen production and the EU's carbon border adjustment system that includes hydrogen.

The GHG emissions standard to be certified as clean hydrogen in South Korea was proposed at 4kg of carbon dioxide equivalent (CO2e) for every kg of hydrogen produced, with emissions to be calculated from the extraction of feedstock to hydrogen production. But emissions from ships will be temporarily excluded. This is largely in line with proposed emissions standards for clean hydrogen in other countries at 4kg of CO2e for the US, 3.38kg for the EU and 3.4kg in Japan.

There were also two different types of support measures proposed for clean hydrogen in South Korea, a differential rate or a flat rate support measure. The UK, Germany and Japan designed and announced differential support measures to support clean hydrogen's lack of economic feasibility in its early stages, while the US is providing flat rate support through the IRA. South Korea will decide on a support method after studying the two proposals.

Motie also in March revealed more details on a hydrogen power bidding market that is scheduled to open by June. It said then that the clean hydrogen market will open in early 2024 after the clean hydrogen certification system and relevant laws are enacted.

The ministry previously in 2022 announced plans to implement the hydrogen certification system by 2024. An amendment to the Hydrogen Act was passed in 2022 to establish a legal basis for the creation of a clean hydrogen market, Motie said.

By Tng Yong Li

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By Reina Maeda and Nanami Oki Japanese firms' methanol projects Methanol-fuelled ships Company # of vessel Type Target commercialisation Announcement Mitsubishi Gas Chemical, Mitsui OSK Line 1 Ocean-going methanol carrier Jul-05 May-23 Toyofuji Shipping, Mitsubishi Heavy Industries 2 Ro-Ro vessel 2027-28 fiscal year Jun-24 Mitsui OSK Line 1 Coastal methanol carrier Dec-24 Jul-24 NS United Kaiun, Nihon Shipyard, Jaman Marine United, Imabari Shipbuilding Multiple Bulk carrier After 2027-28 fiscal year May-24 Orix, Tsuneishi Shipbuilding 2 Bulk carrier Jul-24 Production Company Product Country Target commercialisation Target capacity (t/yr) Mitsui E-methanol US Jan-24 1630000 Mitsubishi Gas Chemical Bio-methanol Japan Jun-24 Small amount Mitsubishi Gas Chemical, Kobelco E-methanol Japan NA NA Cosmo, Toyo Engineering E-methanol Japan NA NA Sumitomo Chemical E-methanol Japan 2030s NA Mitsui, Asahi Kasei Bio-methanol US Jun-23 NA Toyo Engineering E-methanol India 2030 NA Investment Company Product Country Target commercialisation Target capacity (t/yr) Mitsui E-methanol Denmark NA 42,000 Idemitsu E-methanol Brazil, US, Chile, Uruguay, Australia 2,030 4,000,000 JOGMEC E-methanol Brazil, US, Chile, Uruguay, Australia 2,030 4,000,000 Mitsu OSK Line E-methanol Brazil, US, Chile, Uruguay, Australia 2,030 4,000,000 Table source: Firm's company releases Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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