S Korea outlines clean hydrogen certification system

South Korea outlined its clean hydrogen certification system at a briefing session on 17 April, with a proposed emissions standard for clean hydrogen and support measures.

The clean hydrogen certification system will certify that greenhouse gas (GHG) emissions in the process of producing or importing hydrogen were below a certain level and will support incentives, according to the country's trade and industry ministry (Motie).

Motie noted that other countries have also been promoting clean hydrogen through their policies, such as the US' Inflation Reduction Act (IRA) that provides tax credits for clean hydrogen production and the EU's carbon border adjustment system that includes hydrogen.

The GHG emissions standard to be certified as clean hydrogen in South Korea was proposed at 4kg of carbon dioxide equivalent (CO2e) for every kg of hydrogen produced, with emissions to be calculated from the extraction of feedstock to hydrogen production. But emissions from ships will be temporarily excluded. This is largely in line with proposed emissions standards for clean hydrogen in other countries at 4kg of CO2e for the US, 3.38kg for the EU and 3.4kg in Japan.

There were also two different types of support measures proposed for clean hydrogen in South Korea, a differential rate or a flat rate support measure. The UK, Germany and Japan designed and announced differential support measures to support clean hydrogen's lack of economic feasibility in its early stages, while the US is providing flat rate support through the IRA. South Korea will decide on a support method after studying the two proposals.

Motie also in March revealed more details on a hydrogen power bidding market that is scheduled to open by June. It said then that the clean hydrogen market will open in early 2024 after the clean hydrogen certification system and relevant laws are enacted.

The ministry previously in 2022 announced plans to implement the hydrogen certification system by 2024. An amendment to the Hydrogen Act was passed in 2022 to establish a legal basis for the creation of a clean hydrogen market, Motie said.

By Tng Yong Li