South Korea’s hydrogen market will almost double in size from £9.1bn in 2020 to £17.3bn by 2030, says new report by Intralink.
The international business development consultancy says the growth will largely be driven by investment from big local players such as Hyundai and Doosan, which increasingly see hydrogen as a key growth engine.
Hyundai intents to spent £4.9bn under its Fuel Cell Vision 2030 programme and looks well placed to capitalise on its early-move advantage in fuel cells, both by selling its own vehicles and by licensing its fuel cell systems to OEMs around the world.
With POSCO’s recent retreat, Doosan now dominates Korea’s large-scale stationary fuel cell market and with its growing portfolio of fuel cell technologies, the company looks set to become competitive in other stationary power applications, such as the residential and commercial markets.
This level of ambition is matched by a Korean Government that sees hydrogen as part of the solution to the high carbon intensity of the country’s economy.
The government announced its Hydrogen Economy Roadmap in 2019, which aims to deploy 15GW of utility-scale and 2.1GW of commercial and residential fuel cells by 2040.
In terms of mobility, the goal is to have 5.9 million fuel cell cars and 60,000 fuel cell buses on the road by 2040 all supported by 1,200 hydrogen refuelling stations.
The announcement of Korea’s Green New Deal in July 2020 – a coronavirus stimulus plan outlining £47bn in ‘green’ public-private capital investment by2025 – should help the country on its way to achieving these aggressive long-term goals.
One of the key elements of that push is the development of hydrogen vehicles; South Korea hopes to produce 500,000 hydrogen fuel cell vehicles for export and domestic consumption by 2030.
With the UK expected to announce its own hydrogen strategy in early 2021, The hydrogen economy – South Korea says there is already a growing awareness in South Korea that the UK is a world leader in the fields of basic science, advanced materials and fuel cells.
This offers huge opportunities for UK fuel cell and hydrogen companies with both public and private sectors investing heavily in the nascent hydrogen opportunity.
Read the report in full here.
“Decreasing the end-user price of hydrogen is the challenge. The price of hydrogen at the country’s refuelling stations ranges between $5.7 and $7.1 per kilo. The government is looking to decrease this to $4.8 per kilo by 2022 and $2.4 per kilo by 2040, which are highly aggressive targets,” Dilshod Akbarov, Energy Specialist at Intralink Korea, told H2 View in August 2020.
We discussed South Korea’s hydrogen economy in detail with Akbarov and if you missed that interview, read it again here.