Latest market news

S Korea looks to roll out H2 certification system

  • Market: Hydrogen
  • 21/07/22

The South Korean government has announced plans to introduce a hydrogen certification system in 2024, aiming to expand institutional support for the country's hydrogen economy.

The government is carrying out research to prepare the certification system, which will take into account hydrogen production methods, international trends and domestic industrial status, the country's industry and trade ministry (Motie) said on 20 July. The draft will be released in 2023, with the system to be implemented in 2024.

Motie is seeking to address the need for a clean hydrogen certification system, as well as incentives for various hydrogen production methods like ammonia and carbon capture utilisation and storage (CCUS). An amendment to the Hydrogen Act was also recently passed to establish a legal basis for the creation of a clean hydrogen market, Motie said.

Various institutional support for hydrogen power generation sources is required for hydrogen and ammonia co-fired power generation policy and related systems. The government aims to introduce a "clean hydrogen power system" for hydrogen power plants in 2023, although more details on the plan were not provided.

The government has set a target to supply 100pc of hydrogen demand in 2050, or 27.9mn t, with clean hydrogen, and expand its clean hydrogen self-sufficiency rate to over 60pc.

"Hydrogen is the core of the new energy industry, and the government will provide solid institutional support to revitalise private investment," said Motie's second vice-minister Park Il-joon.

Motie will also provide policy support and regulatory innovations to support a privately-led hydrogen fund that was launched in early July, it said. Industry body Korean H2 Business Summit launched the hydrogen fund with the aim of raising 500bn South Korean won ($381mn) by the end of this year, to enable it to start making investments in 2023.

Motie also highlighted the need for more hydrogen charging infrastructure such as fuel cells to be installed in existing gas and LPG charging stations to increase accessibility.

South Korea has been increasing its decarbonisation efforts, with the government attempting to achieve 2050 net-zero emissions through a complete coal phase-out. The western province of South Chungcheong is planning to build hydrogen fuel cell plants following the planned retirement of its 14 coal-fired units by 2032.

South Korean companies have also started investing in hydrogen, with automakers Hyundai and Rolls Royce agreeing to jointly develop hydrogen fuel cell technology, and LG Chem planning to build a 50,000 t/yr hydrogen plant in Daesan by 2024.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

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
13/11/24

Cop: Argentina pulls delegation from Baku

Cop: Argentina pulls delegation from Baku

Montevideo, 13 November (Argus) — Argentina's government today withdrew its delegation from the UN Cop 29 climate summit in Baku, Azerbaijan. The country's foreign affairs ministry confirmed to Argus that the delegation had been told to leave the event, which began on 11 November and will run through 22 November. No reason was given for the decision, but it fits the general policies of President Javier Milei, who has expressed skepticism about climate change. Milei eliminated the country's environment ministry shortly after taking office in December 2023. He is also pursuing investment to monetize oil and gas reserves, with a focus on the Vaca Muerta unconventional formation. Vaca Muerta has an estimated 308 trillion cf of natural gas and 16bn bl of oil, according to the US Energy Information Administration. In October, the government created the Argentina LNG division with a plan to involve private companies and the state-owned YPF to produce and export up to 30mn metric tonnes (t)/yr of LNG by 2030. It wants to export 1mn bl of crude. The plans are closely linked to a new investment framework, known as RIGI, that will provide incentives for large-scale investments. The administration is also pushing hard for investment in critical minerals, including copper and lithium. Argentina has the world's second-largest lithium resources, estimated at 22mn t by the US Geological Survey. It has copper potential that the RIGI would help tap. The government has not specified if pulling out of Cop 29 means Argentina will withdraw from the Paris Agreement, which Argentina ratified in 2016. The country's nationally determined contribution calls for net emissions not to exceed 359mn t of CO2 by 2030. This represents a 21pc reduction of emissions from the maximum reached in 2007. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

Cop: UK sets ambitious 2035 climate target


12/11/24
News
12/11/24

Cop: UK sets ambitious 2035 climate target

London, 12 November (Argus) — The UK government has set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline, the country's prime minister Keir Starmer said today at the UN Cop 29 climate summit in Baku, Azerbaijan. The target, which will form the basis of the UK's next national climate plan, is in line with recent recommendations from the independent advisory Climate Change Committee . Energy minister Ed Miliband sought the committee's guidance shortly after the Labour government was elected in July. Starmer urged all countries to come forward with new national climate plans — known as nationally determined contributions (NDCs) — at Cop 29. Details of the UK's new NDC are not yet clear, but Starmer said his government is "fully committed" to its pledge of zero-emissions power by 2030. He also repeated his promise for a "government that trod lightly on people's lives". "The UK is stepping up as a climate frontrunner at a time when such leadership is critically needed, co-founder of think-tank E3G Nick Mabey said. "We hope to see detailed implementation plans — ideally with sectoral commitments and a supporting investment roadmap — to lend credibility to its submission." The energy transition "is a huge opportunity", Starmer said, pointing to global appetite for renewables investment. And he noted the "advantage of being a first mover". The country's Labour government, elected in July, has diverged substantially from the previous administration on climate issues. The UK government today announced a "clean industry bonus" — a provisional £27mn ($34.6mn) per GW of offshore wind, to incentivise offshore wind developers to invest in industrial areas, many of which are rooted in the oil and gas industry. This will boost "green jobs" and support sustainable industry, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Slow H2 progress risks shipping, steel net-zero goals


11/11/24
News
11/11/24

Slow H2 progress risks shipping, steel net-zero goals

London, 11 November (Argus) — Efforts to keep the steel and shipping sectors on track for the Paris Agreement's 1.5°C target and for net-zero emissions by 2050 are being hampered by the clean hydrogen sector's slow progress, industry participants said on a panel hosted by Paris-based intergovernmental group OECD ahead of the UN climate summit Cop 29. Clean hydrogen will be crucial to decarbonise the steel and shipping sectors because initiatives such as direct electrification and increased energy efficiency will be insufficient to reach net-zero emissions, panellists said. But ensuring supply of clean hydrogen and derivatives at scale and within the timeline required to meet climate goals has proved a challenge. The two sectors together represent 10pc of global CO2 emissions and they would require 10mn-15mn t/yr of low-emissions hydrogen by 2030 in order to be on track for net zero by 2050, OECD environment directorate policy analyst Joseph Cordonnie said. Adapting to the deployment of hydrogen or derivatives in both sectors will take time, considering vessels and plants have a long life, so change needs to accelerate to avoid "emissions lock-in", Cordonnie said. The global steel sector would require around 70 commercial-scale green steel plants by early 2030s to "stay as close as possible" to the 1.5°C target, according to Faustine Delasalle, chief executive at Mission Possible Partnership, a private sector initiative aimed at promoting the decarbonisation of hard-to-abate industries. Around 60 green steel projects have been announced, but fewer than 10 have reached final investment decision (FID), Delasalle said. Fewer than 10 projects targeting production of hydrogen-based fuels such as ammonia or e-methanol specifically for bunkering have reached FID, she said. Technology to decarbonise these heavy industries has progressed significantly over the last years, but "there is a lag" between technological advancements and industrial-scale investment and developers are struggling with project economics, Delasalle said. Many projects for production of hydrogen or derivatives have recently been delayed or cancelled. Demand for products throughout the value chain has not moved at the necessary scale, Delasalle said. While there is voluntary demand for 'green' industrial products, overall demand has not reached a level that can unlock greater investment for projects to scale up, she said. Waiting for the market to balance itself will not deliver decarbonisation, according to Delasalle. Even generous policy support for production such as the US' IRA scheme has not been enough for projects to build a strong business case. This shows the need for measures that "enable the green product to be more competitive versus the grey", like carbon pricing, "the removal of fossil fuel subsidies" and instruments that "drive demand for green commodities regardless of the price", such as mandates and carbon intensity thresholds, she said. Subsidies represented less than 5pc of funding for Swedish green steel producer Stegra's project in Sweden, the firm's public affairs director Ola Hansen said. Stegra has seen demand from offtakers who are voluntarily cutting lifecycle emissions, but "what we really need is carbon pricing and to take away the fossil fuel subsidies," Hansen said. "It's hard to compete with unpriced fossil fuel emissions," he said. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Cop: US climate envoy says clean energy trends to stay


11/11/24
News
11/11/24

Cop: US climate envoy says clean energy trends to stay

Baku, 11 November (Argus) — The upcoming administration of US president-elect Donald Trump cannot reverse investment in clean energy technologies and innovation in the country, US climate advisor John Podesta said today at the UN's Cop 29 climate summit in Azerbaijan. Talking about clean energy — including nuclear energy and the electrification of the automobile sector — Podesta said that trends would not be reversed under a Trump administration, even though the country will be facing new headwinds. Trump's upcoming administration will attempt to reverse US climate policies , including eliminating tax incentives for clean electricity and the related supply chain through the Inflation Reduction Act (IRA), sparking uncertainty about clean energy investment in the country. But Podesta said that Trump will face opposition even from Republican-led districts. Around 57pc of new clean energy jobs created since the IRA are in congressional districts represented by republicans, he said. "Support for clean energy has become bipartisan, many republicans especially governors know all this activity is a good thing for their districts, states and for their economies." A group of 18 republicans this summer said they opposed a "full repeal" of the IRA because of the growth it is delivering to their districts. "It's precisely because the IRA has staying in power,[that] I am confident the US will continue to reduce emissions, benefitting our own country and benefiting the world," he added. "The economics of energy transition have taken over." The White House estimates that more than $265bn in clean energy investment has been announced since the passing of the IRA. The current administration has still work to make sure investment in clean energy continues to flow once the new administration starts, he said. A permitting reform is receiving bipartisan support in the senate, Podesta said, while the government is working on awarding more funds available through the IRA. Around $98bn has been awarded already, which is 88pc of the funds available for the fiscal year. The government is also working against the clock in completing the implementation of the IRA, which has some tax guidance pending regarding tax credits for clean hydrogen investment, among others. Talking about Cop 29, where parties are due to agree on a new finance goal from developed countries to developing countries, Podesta said that the US is "here to work and we are committed to a successful outcome". "We will continue to encourage people to work diligently to come up with a new funding formula", although he noted that the goal needed to be "realistic". Talking about increasing the contributor base for the finance goal — a difficult issue during technical negotiations — he said that economic circumstances have changed since 1992, and that several developing countries including China are already providing climate finance. The long-running issue around contributors partly stems from the list of developed and developing countries used by UN climate body the UNFCCC. It dates back to 1992, when the body was established, and has been a bone of contention for some time for many developed countries, which argue that economic circumstances have changed in that time frame, and that several countries classed as developing — and typically heavy emitters — should now contribute to climate funds. "We think it's time to take account of those contributions through contributions to multilateral development banks and other forms of cooperation... to make sure that developing countries have the financing they need". He said that the US at Cop 29 was also working on outcomes related to energy deployment, including battery storage and power grids. "The outcome document of this Cop will hopefully point the world in the right direction on that," he said. "Donald Trump may put climate action on the back burner, the work to contain climate change is going to continue in the US," he said. By Jacqueline Echevarria Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Air Products quits $4.5bn Texas renewable H2 plant


08/11/24
News
08/11/24

Air Products quits $4.5bn Texas renewable H2 plant

London, 8 November (Argus) — US-based industrial natural gas firm Air Products has withdrawn from a planned $4.5bn renewable hydrogen joint venture in northern Texas citing the lack of an anchor customer for the plant. Air Product has cancelled any ongoing commitment and engineering for the project and has sold its development rights to its partners, chief executive officer Seifi Ghasemi said on an earnings call. Air Products had previously said it was waiting for US Treasury Department guidance on the 45V renewable hydrogen tax credits to make an investment decision. Ghasemi puts the Texas project costs at $4.5bn, which marks a rise from previous guidance of $4bn, but he did not list this as a factor in the decision to exit. Air Products planned to be the sole offtaker for the project on a 30-year contract when it announced the plan with partner utility company AES in 2022. This would have been a similar model to Air Product's Neom project in Saudi Arabia, where it has responsibility as sole offtaker and will then re-sell to the market. Air Products has more recently chosen not to take more investment decisions on projects unless there is an anchor customer and until it sells 75pc of output from ongoing projects such as Neom, Ghasemi said. This would be closer to the model it has at its established industrial gas plants, where it sells half of the output to an adjacent customer and trades the rest, he said. Some Air Products investors have pressured the company to sign more long-term deals and take less merchant risk on its clean hydrogen projects. Air Products has secured more customers for its Neom project, in addition to an existing deal with France's TotalEnergies, Ghasemi said today. Its other customers prefer not to be named publicly yet, he said. Air Products has also pre-sold 60pc of the output from its Canadian Edmonton CCS-hydrogen project on a long-term take-or-pay contract and is in "active discussion for the remainder of the capacity", Ghasemi said. He said earlier this year that the firm had committed almost all of its capacity at Edmonton. Air Products will focus on projects at Neom, Edmonton, Louisiana and "one or two other projects in Texas," he said, but no other "major projects". By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

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