Latest market news

South Korea outlines hydrogen roadmap to boost industry

  • : Fertilizers, Hydrogen
  • 22/11/10

South Korea is aiming to boost its hydrogen industry by creating large-scale domestic demand, developing relevant infrastructure and establishing a global supply chain.

The country's trade, industry and energy ministry Motie expects these measures to have an economic effect of 47.1 trillion South Korean won ($34.1bn) and to cut 28mn t of greenhouse gases by 2030, without specifying a baseline, it said on 9 November.

The ministry said South Korea's hydrogen policies were "initially limited" to areas like hydrogen cars and power generation fuel cells. The ministry added that this prevented the country from being as competitive as other developed nations in areas such as hydrogen production, storage and transportation.

Motie noted that the country's hydrogen ecosystem was "chiefly centered around grey hydrogen", resulting in an "insignificant" effect in greenhouse gas reduction. Gray hydrogen is produced from natural gas and is also a by-product of petrochemicals and steelmaking process, with no carbon abating measures.

The government plans to create large-scale hydrogen demand in the transportation, power generation and industrial sectors. South Korea aims to raise its supply of high-mobility vehicles such as hydrogen buses and trucks, with a goal of producing 30,000 hydrogen commercial vehicles and building 70 liquid hydrogen-refuelling stations in the country by 2030. The country also plans to utilise hydrogen and ammonia in its power generation, with a goal of achieving 7.1pc of clean hydrogen power generation by 2036. South Korean firm Posco in September revealed plans to introduce hydrogen co-firing power generation technology, in what the firm described as the country's first hydrogen hybrid power generation project, with an aim of generating over 950 GWh/yr.

South Korea also hopes to establish large-scale domestic and overseas production bases. The country recently launched its first large-scale hydrogen demonstration project in Jeju city, aiming to produce 1,176 t/yr of hydrogen at a 60pc utilisation rate.

There are also plans to develop infrastructure for distribution to ramp up clean hydrogen utilisation. This includes establishing a hydrogen power generation bidding market next year, enacting legislation for hydrogen business, and introducing a clean hydrogen certification system in 2024.

South Korea also plans to secure core technologies across the entire hydrogen value chain. This includes developing technologies in seven areas: water electrolysis, liquid hydrogen carriers, trailers, charging stations, fuel cell (mobility), fuel cell (power generation), and hydrogen turbines. Regulations that hamper businesses will be removed and domestic production will be commercialised for export to overseas markets. The country also hopes to foster 600 hydrogen-specialised companies by 2030 from the current 52 firms.

The country plans to build the world's largest liquid hydrogen plant and increase the number of liquefied refuelling stations. It will also build a 4mn t/yr ammonia receiving terminal and a 100,000 t/yr liquid hydrogen receiving terminal, as well as install a hydrogen-only pipeline network.

Supply chain agreements

Domestic companies are collaborating in the development of a clean ammonia supply for use in clean power generation in the country.

Manufacturer Samsung, conglomerates SK and Lotte, steelmaker Posco, and state-owned oil company KNOC agreed to co-operate in producing large volumes of clean ammonia overseas to supply South Korea's west coast. State-owned utilities Korea South-East Power and Korea Western Power will then use the ammonia in clean power generation.

South Korean chemical producer Lotte Fine Chemical last month announced it will import 50,000t of blue ammonia from Saudi Arabia by the end of this year. Lotte Chemical also signed a deal in October to develop supply chains for low-carbon hydrogen and ammonia, eyeing production facilities in Australia and Chile.

South Korean firms are also working to create a liquid hydrogen ecosystem. SK, conglomerate Hyosung and liquid hydrogen producer Hychangwon will build a liquid hydrogen plant and charging station, with automaker Hyundai Motor supplying hydrogen-powered commercial vehicles. Motie and other relevant ministries will also strengthen support for related policies to "foster an exemplary liquid hydrogen ecosystem", Motie said.


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.

24/11/04

US railroad-labor contract talks heat up

US railroad-labor contract talks heat up

Washington, 4 November (Argus) — Negotiations to amend US rail labor contracts are becoming increasingly complicated as railroads split on negotiating tactics, potentially stalling operations at some carriers. The multiple negotiating pathways are reigniting fears of 2022, when some unions agreed to new contracts and others were on the verge of striking before President Joe Biden ordered them back to work . Shippers feared freight delays if strikes occurred. This round, two railroads are independently negotiating with unions. Most of the Class I railroads have traditionally used the National Carriers' Conference Committee to jointly negotiate contracts with the nation's largest labor unions. Eastern railroad CSX has already reached agreements with labor unions representing 17 job categories, which combined represent nearly 60pc of its unionized workforce. "This is the right approach for CSX," chief executive Joe Hinrichs said last month. Getting the national agreements on wages and benefits done will then let CSX work with employees on efficiency, safety and other issues, he said. Western carrier Union Pacific is taking a similar path. "We look forward to negotiating a deal that improves operating efficiency, helps provide the service we sold to our customers" and enables the railroad to thrive, it said. Some talks may be tough. The Brotherhood of Locomotive Engineers and Trainmen (BLET) and Union Pacific are in court over their most recent agreement. But BLET is meeting with Union Pacific chief executive Jim Vena next week, and with CSX officials the following week. Traditional group negotiation is also proceeding. BNSF, Norfolk Southern and the US arm of Canadian National last week initiated talks under the National Carriers' Conference Committee to amend existing contracts with 12 unions. Under the Railway Labor Act, rail labor contracts do not expire, a regulation designed to keep freight moving. But if railroads and unions again go months without reaching agreements, freight movements will again be at risk. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Kuwait's KPC lifts November sulphur price to $135/t fob


24/11/04
24/11/04

Kuwait's KPC lifts November sulphur price to $135/t fob

London, 4 November (Argus) — Kuwaiti state-owned KPC has set its November sulphur price at $135/t fob, up by $11/t from October. This implies a delivered price to China of $158-164/t cfr at current freight rates, which were assessed on 31 October at $23-25/t to south China and $27-29/t to Chinese river ports for a 30,000-35,000t shipment. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexican hydrogen regulatory efforts gain ground


24/11/01
24/11/01

Mexican hydrogen regulatory efforts gain ground

Mexico City, 1 November (Argus) — The Mexican hydrogen association (AMH2) has made significant strides in recent discussions with regulators and officials, unveiling a comprehensive roadmap for industrial hydrogen adoption. The group's report estimates there will be demand for about 392,189 tonnes (t) of hydrogen per year across seven major industries during Mexico's pilot hydrogen development phase. This includes sector-specific hydrogen demands of 148,350 t/yr from oil refining through 10 potential applications; 107,325 t/yr for mining; 55,877 t/yr for hydrogen blending in natural gas; 23,932 t/yr in the metals industry; 35,040 t/yr tied to ammonia production; 15,265 t/yr for public transport; and 6,400 t/yr for methanol production. AMH2's strategy urges the administration of President Claudia Sheinbaum to designate a lead ministry for hydrogen development, prioritize green hydrogen production and introduce incentives for project financing, technology development and energy transition initiatives. Additionally, it calls for regulatory adaptations to facilitate hydrogen's integration into Mexico's natural gas infrastructure, including quality, transportation, distribution and safety standards, especially for industrial equipment. Legal reforms to support hydrogen development will also be needed, according to the report, targeting laws governing mining, water, hydrocarbons, nuclear energy, energy transition, environmental protection, electric power, bioenergy and geothermal power. For green hydrogen — generated with renewable energy — the focus would be on the latter five areas. These efforts align with Mexico's long-term energy plan (Prodesen 2023-2037), which envisions converting 12 combined cycle power plants, totaling 1.024GW, to operate on a 70pc natural gas and 30pc hydrogen blend between 2033 and 2036. AMH2 president Israel Hurtado said although Mexico's pipeline infrastructure could handle up to a 15pc green hydrogen blend, achieving a 30pc blend would require further technological advances expected over the next decade. Prodesen also identifies regions for hydrogen injection into pipeline networks, including Sonora, Sinaloa, Tamaulipas, Oaxaca, Veracruz, Baja California and the Yucatan peninsula. Yet new regulations will be crucial to establish a robust framework for hydrogen blending in existing infrastructure. The Sheinbaum's administration has committed to reducing carbon emissions and promoting clean energy, Hurtado said, with a $13.5bn investment pledge in renewables over six years and a target for 45pc of national power from renewables by 2030. AMH2 has built early connections with Sheinbaum's team, including Jorge Islas, her energy and climate advisor during the campaign, who now heads the energy ministry's (Sener) energy transition unit and supports green hydrogen initiatives. AMH2 leaders also recently met with energy regulator (CRE) president Leopoldo Melchi and commissioner Walter Jimenez, who expressed strong interest in hydrogen regulation. The association and CRE agreed to form a technical workgroup to develop clean hydrogen regulations collaboratively. Looking ahead, AMH2 plans to meet with energy minister Luz Elena Gonzalez and Mexico's economy ministry to further discuss the hydrogen strategy. But CRE's workgroup is on hold pending potential legislative reforms that could reorganize Mexico's energy regulators under Sener's supervision. Projects in development AMH2 has identified 16 hydrogen projects in Mexico, with eight in various development stages and eight announced. Primarily focused on green hydrogen, these projects represent an estimated $19bn investment. The largest, Helax, is a $10bn green hydrogen production facility in Oaxaca, connected to the Interoceanic Trans-Isthmus Corridor. AMH2 anticipates production to start within two years following initial permitting. The roadmap suggests that, even if only six projects are operational by 2030, the sector could generate 3.351GW and attract $1.8bn in investments. These projects are projected to bring in $2.5bn in revenue over six years and yield $1.9bn in tax contributions. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Port strike to halt Vancouver sulfur exports


24/11/01
24/11/01

Port strike to halt Vancouver sulfur exports

Houston, 1 November (Argus) — Sulfur exports could be halted early next week following the announcement of a strike notice by the International Longshore and Warehouse Union (ILWU) Local 514. The union issued a notice for a strike to begin on 11am ET on 4 November after rejecting a final offer from the British Columbian Maritime Employers Association (BCMEA) for a new labor contract. The two parties have been in talks for a new contract since the previous labor agreement expired in March 2023. The BCMEA responded early this morning with a lockout notice, set at the same time as the ILWU Local 514's strike on 4 November. The work stoppage at the port will impact all commodities aside from grains, according to sources. No sulfur handling operations —rail unloading and vessel loading— will take place for the duration of the strike. Logistics providers and shippers will have three days to load vessels, and will likely expedite railcar unloadings before railroad operators make sure cargoes are stored safely. Shippers at the port of Vancouver have exported around 2.47mn t of sulfur from January-September this year, up by 5pc on the year with increased deliveries to China, Indonesia and the US. The Canadian government has the power to intervene and force the parties back to the negotiating table, albeit with a federally appointed mediator. This would also require employees to return to work and for operations at the terminals to resume. By Chris Mullins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Q&A: EU-GCC eye alliance anchored in energy, security


24/10/31
24/10/31

Q&A: EU-GCC eye alliance anchored in energy, security

Dubai, 31 October (Argus) — Russia's invasion of Ukraine in 2022, and the start of the war in Gaza last year hastened the strengthening of relations between the EU and the Gulf Co-operation Council (GCC) ꟷ something both blocs had long been striving for. Argus sat down with the EU's special representative for the Gulf region and former Italian foreign minister Luigi di Maio at the Future Investment Initiative in Riyadh this week to discuss his hopes for the future of the relationship. You spoke at the conference about a comprehensive EU-GCC trade agreement. Such a thing has been on the table for a while without really moving forward. Could the first ever EU-GCC summit two weeks ago in Brussels provide the push needed for it to happen? The final statement of the summit clearly emphasised the importance of finalising the negotiation in a positive way, and reaching the free trade agreement at a regional level as soon as possible. Then we can start tailor-made negotiations on trade and investments. This can work in complementarity with the free trade agreement, for instance, on investments and energy co-operation bilaterally. This doesn't mean we are going to kill the free trade agreement at the regional level, but there are some sectorial co-operations that we can implement. This is a very good starting point. I would say the summit was ‘the message' because although our co-operation agreement dates back to the late 1980s, it was the first ever summit. Of course, that also testifies to the gap that we have to fill. This is why the EU approved the new strategy and why there is a special representative to implement this strategy. And why we are working with the Gulf countries to negotiate and implement [it] as soon as possible. Riyadh is where we opened the first ever European Chamber of Commerce in the GCC. The EU and Saudi Arabia are going to sign an energy co-operation MoU by the end of the year. The text has been discussed, and now we will work for the signature. What are the elements of this energy agreement with Saudi Arabia? It is a new framework to co-operate, particularly, on renewables, hydrogen, and technologies linked to renewables. This is very important, and currently in the hands of the EU commissioner for energy, Kadri Simson, and Prince Abdulaziz bin Salman, the energy minister of Saudi Arabia. Speaking of hydrogen, Prince Abdulaziz spoke here about Saudi Arabia being one of the lowest-cost producers of hydrogen. We also know that hydrogen is a major element of the India-Middle East-Europe Economic Corridor [IMEC] agreement signed at the G20 summit in New Delhi. Is the IMEC project still on the table? And is this growing hydrogen relationship between the EU and the GCC part of it? First, the lesson we, the EU, learned is diversification. So, it's very important to implement our diversification policy on any kind of energy source. It is not only linked to oil, gas or hydrogen, or in general, technologies, raw materials and production. Then there is the issue of how much we can count on the suppliers. The Gulf countries like Saudi Arabia, the UAE, Qatar and others have always been reliable partners. This is why we see the energy co-operation as a pillar of our partnership. On hydrogen, there is a mutual interest to meet our ambitions. Our ambition, according to the European Commission's REPowerEU proposal, is for the EU to produce 10mn t of hydrogen on its soil by 2030, and import another 10 mn t. Saudi Arabia, the UAE and Oman are working with our companies and member states to export hydrogen to Europe. And I think the development of technologies and new projects around that will be at the core of our future co-operation. If you look at Vision 2030, here in Saudi Arabia, but even in the UAE and in the other countries, many of the goals are in line with our REPowerEU, NextGenerationEU, or the European Green Deal proposals. So there is momentum, and we are taking it. We are trying to fill the gap of the past. And the very important thing, not only about hydrogen, but even about the climate co-operation that is in our final statement [of the EU-GCC summit], is that it's not an "Una tantum" [one-off] event. We are working to have the ministerial foreign ministers' meeting in Kuwait next year and the next EU-GCC summit in Saudi Arabia in 2026. We have a long road ahead to implement the deliverables of the last summit, but also to improve our co-operation on renewables. There was a significant breakthrough at Cop 28 with the mention of fossil fuels in the final declaration. Do you see the growing EU-GCC relationship as a leverage to push GCC countries on their climate agendas and goals? The approach should not be that we push them on their climate agendas. We are working together. And thanks to the multilateral relations, ambitions and policies that we have, we can, even in view of Cop 29, co-ordinate in the same way we did at Cop 28. This is very important, because thanks to their influential foreign policy, on Africa, on central Asia, even sometimes on Latin America, and our ambitions and partners around the world, we can merge our relations to take another step forward on climate policy. But as you said, Cop 28 was historic, as consensus was the most ambitious result of the UN climate Cops, and I think we have to continue on this path together. It is not a matter of pushing someone. It's a matter of co-operation. Our level of partnership with GCC has to switch at a strategic level. We want to create a strategic partnership on peace and prosperity. This is our agreed ambition on both sides. Speaking of peace and prosperity, Iran is involved indirectly in the Russia-Ukraine conflict, and its direct confrontation with Israel leaves the GCC sandwiched in the middle. How do you see the EU working with the GCC to attain peace and prosperity, given the increased insecurity in the region? We share with the GCC the interest of peace, prosperity and stability of the region. Because if you look at these countries, what are they doing on Ukraine, like returning children and prisoner exchanges… They are very active, and we appreciate their efforts. So my perception is that the more we work with the GCC on regional stability, the more we will achieve results, because we have a common agenda. They will be very important for the future of the two-state solution, but also for the stability of Lebanon. Even for conveying messages of de-escalation to Iran. The channels with Iran have to be open… to convey messages about nuclear, ballistic missiles, about weapons to Russia for use against Ukraine, and the ‘Axis of Resistance' policy in the region, about the Red Sea and the freedom of navigation. We have to use all the channels we have and the channels the GCC have are precious because of the normalisation processes in the region, just like the Iran-Saudi Arabia one. By Bachar Halabi 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