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What role for clean H2 in South Korea?

What role for clean H2 in South Korea?

Plans for a cleaner grid may leave no future for ammonia co-firing, and recent events will reinforce resolve to reduce import reliance, writes Stefan Krumpelmann Hamburg, 8 April (Argus) — For a while, imports of clean hydrogen and derivatives were expected to take centre stage in South Korea's energy future. But a change in government and war in the Middle East have shifted the focus to domestic clean energy generation, and hydrogen imports could be sidelined to a supporting role. South Korea in 2021 set a target of using 3.9mn t/yr of hydrogen by 2030. Roughly half of this was to be imported from regions with abundant potential for low-cost production. Imports were expected to rise to 22.9mn t/yr by 2050, accounting for over 80pc of supply by then. Hydrogen and derivatives were expected to be used widely across industry, power generation and transport. While these targets have not been abandoned officially, the 2030 goals are far out of reach and policy objectives have changed. After taking office last year, the government of President Lee Jae Myung increased the country's 2030 renewable power capacity target to 100GW from 80GW previously. The existing figure stands at 37GW. The government also announced plans for an accelerated phase-out of coal-fired power , with direct implications for hydrogen and derivatives. Seoul called off a second round of its clean hydrogen power generation bidding market, as the coal phase-out decision effectively rules out long-term ammonia co-firing . War in the Middle East has provided fresh impetus for a government drive to strengthen domestic energy output — South Korea relies heavily on imported fossil fuels, including oil and LNG from the Mideast Gulf. "It is time to establish a new energy security system capable of drastically reducing dependence on imports by expanding domestic production," the ministry of climate, energy and environment said on 7 April. The government now says it aims to reach the 100GW renewables target for 2030 "ahead of schedule". The ministry's statement focused primarily on increased electrification, including a "complete transformation" of the national power grid. But it also referenced support for hydrogen production using renewable and nuclear power, hydrogen consumption in steelmaking and adoption of hydrogen-powered vehicles. An imminent relaunch of the clean hydrogen power generation bidding market's second round may be focused exclusively on co-firing domestically produced hydrogen with natural gas, industry participants say, although the government has yet to finalise the exact plans. Participants in the mechanism previously looked primarily to cheaper supply from abroad , including ammonia produced from natural gas with carbon capture and storage (CCS) in the Middle East. Even before the war started, delays in renewable and CCS-based hydrogen projects globally cast doubts over import plans. And with the government encouraging domestic output, major firms like Hyundai have advanced ambitious plans for renewable hydrogen production and development of in-house technologies . Imports will arguably still have a role, however, given cost advantages and investments already made. Renewable ammonia from elsewhere in Asia could be a particularly attractive proposition. Engineering firm Samsung C&T signed a binding $3bn deal last month for renewable ammonia supply from India's Reliance — possibly to replace volumes from a delayed Saudi CCS-based project destined for co-firing by utility Kospo. And in February, Lotte Fine Chemical received a first renewable ammonia cargo from China's Envision Energy. S Korea's H2 targets from 2021 Target year Domestic production Imports 2030 940,000 t/yr conventional/unabated; 750,000 t/yr CCS-based; 250,000 t/yr renewable 1.96mn t/yr renewable 2050 3mn t/yr renewable; 2mn t/yr CCS-based 22.9mn t/yr renewable - South Korean government Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.