H2 Alliance Launched to Facilitate Investment in Hydrogen
The authors are analysts of NH Investment & Securities. They can be reached at ys.jung@nhqv.com. -- Ed.
Large domestic corporations rolling out hydrogen investment plans
With the Korean government having confirmed its strong commitment towards nurturing of the domestic hydrogen industry, private companies have also launched their hydrogen investment plans, mainly led by large corporations. Major business groups such as HMG, Hanwha, Hyosung, Doosan, POSCO, and HHI, and KOGAS have all presented long-term hydrogen business roadmaps, outlined by value chain.
Private sector’s hydrogen investment to total W43tn by 2030
Based upon investment plans disclosed to date, the private sector’s hydrogen investment is estimated to total W43tn by 2030. In detail, about W11tn should be directed towards production of green/blue hydrogen, W8tn towards construction of liquefaction plant, storage, and transportation infrastructure, W23tn towards FCEVs, and W1tn towards parts development (mostly by small/mid-sized firms). With regards to hydrogen production, Korean firms are planning a shift from grey hydrogen to blue/green hydrogen, and in terms of storage and transportation, they are aiming to switch from high-pressure gaseous hydrogen to liquid hydrogen.
By business group, SK Group would invest W18.5tn for large-scale liquefaction plant construction and fuel cell business; HMG plans to channel W11.1tn for FCEV manufacturing facilities and R&D; POSCO is to invest W10tn in capital for by-product hydrogen and green hydrogen import; Hanwha should direct W1.3tn to development of green hydrogen water electrolysis technology and storage facilities; and Hyosung is to invest W1.2tn for liquefaction plant and HRS construction.
H2 Alliance
In Feb 2017, H2KOREA, a public-private council for revitalizing hydrogen, was launched. Consisting of 90 members from the private sector, the public sector, and local autonomous bodies, it now serves as a communication channel between the government and the private sector regarding hydrogen economy policies.
