South Korea plans two clean hydrogen production bases

Spanish Market: Emissions, Hydrogen
27/04/23

South Korea's energy ministry (Motie) announced today it is recruiting operators to build two clean hydrogen production bases, in efforts to expand such infrastructure in the country.

Motie plans to provide 5.5bn South Korean won ($4.1mn) for water electrolysis hydrogen production bases and W6.8bn for carbon-capture hydrogen production facilities over three years to selected consortiums.

Motie said one of the hydrogen facilities will use water electrolysis for production, with the other producing hydrogen by reforming natural gas and collecting the carbon dioxide (CO2) generated in the process.

The ministry expects the carbon-collecting hydrogen base to have a production capacity of over 365 t/yr, supplying nearby hydrogen charging stations. It will also stabilise domestic CO2 supplies by capturing and liquefying CO2 for supplying the shipbuilding industry, as well as the food and beverage sector.

Companies and local government that wish to participate in the project are to submit their applications by 30 June.

South Korea last year also selected two sites in the first iteration of its hydrogen production base project.

It selected domestic firm Hyundai Engineering and Construction (Hyundai E&C) to lead a consortium to establish a 2.5MW water electrolysis project in North Jeolla province's Buan city, in what the firm described as the country's first such facility. Hyundai E&C is involved in designing the facility, buying equipment and materials, as well as construction. It said last year that the facility is expected to produce, store and transport over 365 t/yr of hydrogen and to be completed by May 2024. Motie expects Hyundai to be involved in overseas water electrolysis construction projects, such as in Chile, in the future.

The other site selected last year is a water electrolysis project located in Gangwon province's Pyeongchang county, led by domestic petrochemical producer Hanwha Solutions. The producer is working with the province to produce green hydrogen using electricity from a province-owned wind power generator, with the hydrogen to be supplied to the nearby Daegwallyeong hydrogen refuelling station.

South Korea's most recent push to expand clean hydrogen infrastructure is in line with plans to open a hydrogen power bidding market by June, which will differentiate between clean and general hydrogen power generation. The country also earlier this month outlined its clean hydrogen certification system, with the greenhouse gas emissions standard for clean hydrogen proposed at 4kg of CO2 equivalent for every kg of hydrogen produced.

By Tng Yong Li

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24/12/24

Viewpoint: California dairy fight spills into 2025

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South Korea to invest $309bn in green finance by 2030

24/12/24

South Korea to invest $309bn in green finance by 2030

Singapore, 24 December (Argus) — South Korea plans to invest 450 trillion won ($309bn) in green finance by 2030, acting president and prime minister Han Duck-soo said on 23 December. The country is also "actively encouraging private investment by upgrading the Korean Green Taxonomy system", Han added. The taxonomy is technical legislation that classifies the industrial carbon and environmental footprint for investors. It aims to promote green finance and prevent ‘greenwashing', with the aim of achieving a sustainable circular economy. The most important issue for the industrial sector, which accounts for about 36pc of domestic emissions, is to transition to carbon neutrality, Han said. South Korea has an "export-driven economic structure with high external dependence", he said, which means international carbon barriers will significantly affect South Korea. This makes decarbonisation key to maintaining competitiveness, he added. South Korea is also responding to the climate crisis through technological innovation. The country's science ministry last week unveiled plans to invest almost W2.75 trillion to develop technology to respond to climate change in 2025. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Viewpoint: Low-carbon fuel battles tumble into 2025

23/12/24

Viewpoint: Low-carbon fuel battles tumble into 2025

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Viewpoint: US tax fight next year crucial for 45Z

23/12/24

Viewpoint: US tax fight next year crucial for 45Z

New York, 23 December (Argus) — A Republican-controlled Congress will decide the fate next year of a federal incentive for low-carbon fuels, setting the stage for a lobbying battle that could make or break existing investment plans. The 45Z tax credit, which offers greater subsidies to fuels that produce fewer emissions, is poised to kick off in January. Biofuel output has boomed during President Joe Biden's term, driven in large part by west coast refiners retrofitting facilities to process lower-carbon fats and oils into renewable diesel. The 45Z tax credit, created by the 2022 Inflation Reduction Act (IRA), was designed to extend that growth. But Republicans will soon control Washington. President-elect Donald Trump has dismissed the IRA as the "Green New Scam", and Republicans on Capitol Hill, who had no role in passing Biden's signature climate legislation, are keen to cut climate spending to offset the steep cost of extending tax cuts from Trump's first term. 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By Cole Martin Tax credit changes 40A Blenders Tax Credit 45Z Producers Tax Credit $1/USG Up to $1/USG for road fuels and up to $1.75/USG for aviation fuels depending on carbon intensity For domestic fuel blenders For domestic fuel producers Imported fuel eligible Imported fuel not eligible Exclusively for biomass-based diesel Fuels that produce no more than 50kg CO2e/mmBTU are eligible Feedstock-agnostic Carbon intensity scoring incentivizes waste over crop feedstocks Co-processed fuels ineligible Co-processed fuels ineligible Administratively simple Requires federal guidance on how to calculate carbon intensities for different feedstocks and fuel pathways Expiring after 2024 Lasts from 2025 through 2027 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil Bndes invests more in Sao Paulo EV fleet

20/12/24

Brazil Bndes invests more in Sao Paulo EV fleet

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