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South Korea launches green H2 pilot project in Jeju

  • Market: Hydrogen
  • 03/10/22

South Korea's industry and trade ministry (Motie) announced on 29 September the start-up of what it describes as the country's first large-scale hydrogen demonstration project in Jeju city.

The 12.5MW project, costing 62bn South Korean won ($43.3mn), will run until March 2026 and will be operated by state-controlled utility Korea Southern Power. The pilot project aims to demonstrate hydrogen production with all four existing hydrolysis systems using a high renewable energy ratio — alkaline electrolysis cell, polymer electrolyte membrane, solid oxide electrolysis cell and anion exchange membrane.

The project aims to produce 1,176 t/yr of hydrogen at a 60pc utilisation rate. This is in line with a government 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. The produced hydrogen will be supplied to 200 cleaning vehicles and 300 buses in Jeju.

Installed electrolysis capacity has to rise to 850GW by 2030 and 3,600GW by 2050 to achieve net zero emissions by 2050, according to the IEA.

"Jeju will be the first to achieve the government's renewable energy target of 21.5pc in 2030 and build a global green hydrogen hub based on this," said Jeju governor Oh Young-hun. "We will take the lead in the national hydrogen economy by building hydrogen ports and importing and converting hydrogen."

"The government will actively make efforts to overhaul and deregulate related systems in order to induce and support private investment in the hydrogen industry, including the introduction of the clean hydrogen power generation system in 2023 and the implementation of the clean hydrogen certification system in 2024," said Motie's second vice-minister Park Il-joon.

More capacity comes on line

South Korea has also launched the country's third hydrogen production base in Samcheok city's Gangwon province on 30 September, Motie said the same day.

The Samcheok plant is Gangwon's first such plant with shipping facilities and has a production capacity of 365 t/yr. Hydrogen produced will be supplied to the province's hydrogen refuelling stations through a shipping facility. The Samcheok production base comes after the Pyeongtaek base that launched in July and the Changwon plant that has been operating since the end of last year.

Gangwon does not have any by-product hydrogen production facilities, so Chungcheongnam province's Dangjin and Daesan cities have been supplying the province's eight hydrogen charging stations. But supplies have to travel up to 200km, resulting in "burdensome transportation costs", Motie said.

The Samcheok facility will be fully operational from mid-October onwards, with supplies sent to five hydrogen charging stations in the province each day.

Motie also plans to start operating all seven natural gas-based small-scale hydrogen production bases early next year. Future hydrogen production facilities will only include those that produce green hydrogen through hydrolysis, or blue hydrogen using carbon capture to achieve carbon neutrality.

"In the future the government plans to push ahead with the transition to the hydrogen economy without a hitch by upgrading infrastructure related to hydrogen storage and transportation," said Park.


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05/03/25

UK govt consults on ‘clean energy future’ for North Sea

UK govt consults on ‘clean energy future’ for North Sea

London, 5 March (Argus) — The UK government has launched a consultation on the North Sea's "clean energy future", seeking to balance "continued demand for oil and gas" with the natural decline of the North Sea basin, the country's energy security and climate science. The government has proposed an end to new onshore oil and gas licences in England — as onshore licensing is a devolved matter — and once again confirmed its manifesto pledge for no new oil or gas licences for North Sea exploration. It also confirmed a previous commitment to end the so-called windfall tax on oil and gas producers in 2030. Further oil and gas licences "would not meaningfully increase UK production levels, nor would they change the UK's status as a net importer of oil and gas", the government said. It flagged the North Sea basin's maturity, which means that an absence of new licences makes only "a marginal overall difference to future North Sea production". The "vast majority of future production is expected to come from producing fields or fields already being developed on existing licences", the government said. It noted that while offshore licensing rounds have resulted in up to 100 permits each time, under 10pc of recently issued licences "have progressed to active production". But its halt on new exploration licences would not preclude any licence extensions being granted, the government said. It aims to provide "certainty to industry about the lifespan of oil and gas projects by committing to maintain existing fields for their lifetime". The decision does not affect the issuing of new gas or carbon storage licences, it added. Focus on 1.5°C The consultation also doubles down on the government's previous commitments to "clean power" by 2030 — which would entail a small role for gas-fired power generation, of under 5pc — and its determination to be a leader in climate action. "The science is clear that the world needs to take urgent action and that current plans for global production of oil and gas are not compatible with limiting global warming to 1.5°C," the government said. The Paris climate agreement seeks to limit global warming to "well below" 2°C above pre-industrial levels and preferably to 1.5°C. The government has requested views on its plans to ensure a "prosperous and sustainable transition for oil and gas" and to make the UK a "clean energy superpower", focused on technologies such as offshore wind, hydrogen and carbon capture, use and storage (CCUS). This will boost the UK's economy and energy security, the government said. "Clean energy" is key for energy security, as a reliance on fossil fuels leaves the UK at "the mercy of global energy markets", it added. "CCUS will be a critical component of the UK's energy transition," the government said. It also noted the geological advantage the UK holds for CO2 storage. There is "significant potential for CO2 import", likely from Europe, it said. The government has also sought extensive feedback on the transition for the country's oil and gas workforce. An "offshore renewables workforce" could stand at between 70,000 and 138,000 in 2030, it said, while oil and gas jobs are set to decrease, alongside the North Sea's fossil fuel production. Today's consultation will close on 30 April. And the government will publish its final guidance on an updated environmental framework for oil and gas "in good time", it said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Germany launches second industry decarbonisation call


04/03/25
News
04/03/25

Germany launches second industry decarbonisation call

Berlin, 4 March (Argus) — Germany's economy ministry has launched a second call for funding decarbonisation projects aimed at mid-sized industry companies, the tender manager announced today. The main tender part, managed by Cottbus-based Competence Centre for Climate Protection in Energy-Intensive Industries KEI, addresses decarbonisation measures planned by mid-sized companies, either through the electrification of processes or the use of hydrogen. Support is capped at €200mn per project. Interested companies are expected to submit a "meaningful" outline of their project by 15 May, KEI said. The formal application phase will begin once their proposal has been accepted. Financing will be provided under the EU's Temporary Crisis and Transition Framework (TCTF), which aims to accelerate green technology funding for a climate-neutral economy. To conform with EU state aid law, grants under the TCTF must be approved by 31 December. The other part of the tender is managed by the Julich research institute and addresses carbon capture and storage or use projects, restricted to hard-to-abate emissions. Support is capped at €30mn per project, or €35mn for industrial research. A total of €3.3bn has been set aside until 2030 for the support, to be financed by Germany's climate and transformation fund KTF, itself financed through the EU emissions trading system and Germany's domestic carbon price. Both tender parts are aimed at industrial companies based in Germany, and which plan or operate plants with industrial processes that are to save at least 40pc of their carbon emissions in production through investments or research projects. The programme is focused on, but not limited to, companies in energy-intensive basic industries such as steel, chemicals, glass, ceramics, paper, cement and lime. The first tender round was held in August . The outgoing government has planned annual calls for funding until 2030. Germany's economy ministry has also held tenders for carbon contracts for difference aimed at larger industry groups. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Energy a priority for Uruguay’s new government


28/02/25
News
28/02/25

Energy a priority for Uruguay’s new government

Montevideo, 28 February (Argus) — Energy will play a central role as Uruguay's new president Yamandu Orsi begins his five-year term on 1 March. Orsi, of the left-wing Broad Front coalition, takes over one of South America's most economically and politically stable countries. The economy is forecast to expand by 3pc this year, above the regional average, and the government wants to attract investment to maintain growth. The energy sector is a priority. Uruguay already has one of the region's cleanest grids, with 99pc of power coming from renewable sources, and in February reached the goal of 100pc electrification nationwide, according to the state-run electric company, UTE. The Orsi administration is studying options for the second phase of the energy transition, which includes adding capacity to meet increasing demand from electrification of transportation and clean fuel production. New finance minister Gabriel Oddone said the administration would focus on reducing red tape and potentially provide incentives for investment in the energy sector. Uruguay currently has close to 5.3GW of installed capacity, with 78pc in renewable sources, for its population of 3.5mn. The UTE, which had a profit of $315mn in 2024, is adding 100MW in wind power in the next two years. The Orsi administration plans to prioritize solar capacity. The new government is keenly following the development of low-carbon hydrogen and e-fuel projects. The most advanced project is for production of 700,000 tonnes (t) of synthetic fuel by Chile's HIF Global and ALUR, the biofuel arm of the state-owned Ancap. Investment is estimated at $6bn, making it the largest planned single investment in the country's history. The company requested approval in January of environmental permits for the project's solar park that would include 1.84mn bifacial solar panels. It would produce a peak of 1,162MW. Construction would take 18 months from approval. The municipal council in Paysandu, in northwestern Uruguay where the project is planned, on 27 February approved a change in land use to facilitate plant construction. Ancap, which lost an estimated $130mn last year because its only refinery was closed for six months, has proposed offshore production of low-carbon hydrogen. The Orsi administration has not yet committed to the project. Reverse transition? The new government will also have to also have to decide on the future of seven offshore exploration blocks, with seismic testing planned for late this year, and the possible construction of a gas pipeline that would link Argentina and Brazil. A pipeline exists from Argentina to Uruguay, but it could be expanded and extended to supply southern Brazil. It would require an additional 415km (258mi) in Uruguay, and around 500km in Brazil's Rio Grande do Sul state. Orsi has taken a wait-and-see attitude toward exploration, while a gas pipeline would likely have more popular support because it could expand service from only a section of the coast to a wider region. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU eyes clean industry drive, climate policy tweaks


26/02/25
News
26/02/25

EU eyes clean industry drive, climate policy tweaks

Brussels, 26 February (Argus) — The European Commission today published a wide range of proposals aimed at boosting the bloc's economy, clean energy and technology, while bringing down energy costs. Several legislative proposals aim at simplification, notably on climate reporting. The commission also announced plans to expand demand aggregation and joint purchase schemes, currently in place for natural gas, to other raw materials, including lithium. And an EU critical raw material centre would jointly purchase raw materials on behalf of interested companies. EU climate commissioner Wopke Hoekstra said the commission is going "all out" to protect and advance its economy. "There's no question of turning our backs on climate action," he added, noting the need for a strong business case for decarbonisation. The commission has said it is " staying the course " in terms of its recommended target for cutting greenhouse gas (GHG) emissions by 90pc by 2040, compared with 1990 levels. Hoekstra noted that the commission did not today present 2040 GHG proposals because of the number of other plans unveiled. It is "very clear" that the EU is moving away from Russian gas and also from fossil fuels, energy commissioner Dan Jorgensen said, detailing an affordable energy plan . But a draft document seen by Argus showed plans for more flexibility on long-term supply deals and a "Japanese model" of investment in LNG export terminals. Hoekstra pointed to a new proposed EU bank for industrial decarbonisation, funded with money from the bloc's emissions trading system (ETS). The proposed bank could raise €100bn ($105bn) for industrial decarbonisation projects, including €20bn from the ETS innovation funds, over the next ten years. And that figure could hit €400bn, if leveraged with private funds, Hoekstra said. The commission aims to simplify the bloc's carbon border adjustment mechanism (CBAM). Hoekstra promised exemption for 90pc of the firms currently covered, while later proposals would see changes to scope and new products. Officials note that the exemption does not mean a "delay" of CBAM. The commission is also promising to promote clean products with new public procurement requirements in 2026. And a voluntary carbon intensity label for industrial products will be launched with steel in 2025, followed by cement. The commission also updated state aid rules to boost decarbonisation and clean tech, pledging a new, simplified framework by June. The hydrogen industry, commenting on a draft of the state aid framework, noted a lack of flexibility for EU states to promote demand and close the price difference between fossil- and non-fossil-based hydrogen. And the commission published eased due diligence obligations for some 6,000 EU and 900 non-EU large firms that require business models compatible with keeping global temperatures within 1.5°C of pre-industrial levels, in line with the Paris climate agreement. Qatari energy minister Saad Sherida al-Kaabi has warned that the country could not continue continued LNG exports if the EU did not "thoroughly" review its corporate sustainability due diligence directive (CSDDD). A senior EU official noted a "misunderstanding" on due diligence over a maximum fine of 5pc for firms' total worldwide revenue that would only be applied to "egregious" breaches of the CSDDD, including for serious violations of human rights. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Nel upbeat on electrolysers as buyers change approach


26/02/25
News
26/02/25

Nel upbeat on electrolysers as buyers change approach

Paris, 26 February (Argus) — Norwegian electrolyser manufacturer Nel said today it is confident that major orders will materialise this year after a "disappointing" 2024, as hydrogen firms are securing equipment later in the project development process because of reduced concerns about availability. Nel registered a higher order intake in January alone than in the final quarter of last year, chief executive Hakon Volldal said during the company's results call today, adding that "2024 was a disappointment" but that "2025 is expected to be much better." Nel chief financial officer Kjell Christian Bjornsen said customers in the past anticipated an electrolyser shortage, so would place orders at an earlier stage of project development to secure the equipment. Some years ago, "clients signed up to engineering work, concept work and the equipment package at the same point in time" before securing project financing, he said. Now developers "get the full funding stack in place", including agreements with banks and lenders, when they place the electrolyser order, according to Bjornsen. "That's the major difference," he said. As many renewable hydrogen projects have been delayed or cancelled, electrolyser manufacturers have struggled to secure firm orders. Many industry participants now expect global electrolyser manufacturing capacity to far outstrip demand at least in the near future, arguably alleviating the need for developers to place orders early in the development process. While clearer regulations in Europe and the US, along with subsidies for projects, could help projects move ahead, the main factor behind Nel's optimism is "real client conversations," Volldal said. At this stage, project developers have a "much more realistic view on what the market is willing to pay for" renewable hydrogen, he said. Because of the change in approach Nel's customers often have completed permitting and engineering, and at times "there is an offtaker" by the time they place an electrolyser order, Volldal said. This means incoming orders are of a more firm nature and a number of Nel's customers are set to take final investment decisions (FID) for their projects "in the next quarters," he said. These are mid-sized projects with 20-100MW capacity, because larger projects of 500MW or more "have been pushed out in time," Volldal said. The "appetite to go green" seems less strong than it was a couple years ago, so projects are required to have a strong business case to reach FID, he said. Over the past quarter Nel saw "one large project in the US and one in Germany" at risk of cancellation, it said without naming the companies. In October, US developer Hy Stor cancelled an order for a 1GW electrolyser system . The customer in Germany might refer to developer HH2E which entered bankruptcy proceedings last November and said possible delays and changes in project timelines "depend on how fast a new investor comes on board". HH2E had placed an order for a 120MW electrolyser with Nel in early 2023 for its project in Lubmin. Nel expects "no more negative impact" from the two contracts in question beyond what it accounted for during the fourth quarter of 2024, Volldal said. The firm expects to be able to fulfil upcoming deliveries despite a halt in production at its facility in Norway — in response to weak demand — because it has sufficient inventory, Bjornsen said. "New order intake that will determine when we switch [the factory back] on," he said. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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