Korea Gas Corp. is to set aside 4.7 trillion won ($4.06 billion) to build hydrogen infrastructure and develop related technologies by 2030 as part of the nation’s push toward next-generation energy, according to the state-run natural gas company on Sunday.
Kogas’ hydrogen plan comes as a follow-up to the Moon Jae-in administration’s hydrogen road map unveiled in January, which aimed to produce 6.2 million hydrogen-powered cars and distribute 15-gigawatt fuel cells for power generation by 2040.
Kogas CEO Kim Young-doo presents the public firm’s hydrogen plan at the government complex in Sejong on Friday. (Kogas)
The firm said it plans to form an infrastructure base for the hydrogen market to grow naturally and to lower production costs through an economy of scale.
Kogas is slated to build 25 hydrogen production facilities by 2030 by making use of its 4,848 kilometers of pipes and 403 supply management offices. It will build hydrogen pipes in key cities nationwide by 2022 to distribute hydrogen.
It also plans to produce and import hydrogen from overseas countries to be capable of supplying massive amounts of hydrogen for power generation.
Through the economy of scale, Kogas expects to lower the supply cost of hydrogen to 4,500 won per kilogram by 2030 from the current 7,000-8,000 won. After 2030, it plans to lower the price to 3,000 won by producing and importing the energy overseas.
Kogas will also invest around 300 billion won in research and development for the technological independence of the entire value chains of the hydrogen industry. It aims to complete the localization of key equipment by 2030. It will foster future technologies such as electrolysis of water in cooperation with industries and academics.
“Through the road map, we expect to create 50,000 jobs by 2030 and grow the hydrogen industry as the nation’s key industry,” said Kogas CEO Kim Young-doo.
By Shin Ji-hye (firstname.lastname@example.org)