The South Korean government is planning to invest 2.33 billion dollars over the next five years to establish a hydrogen car industry ecosystem. This is expected to create a total of 3,800 jobs.
The Ministry of Trade, Industry and Energy announced on June 25th that it held a second meeting on the ‘Industrial Innovation 2020 Platform’ at the Grand Intercontinental Hotel in Seoul, and it was attended by industry officials and experts.
In the meeting, the South Korean government and the industry agreed to establish an ecosystem of hydrogen cars, hydrogen charging stations, and hydrogen energy suppliers through strategic cooperation. The government and the industry have decided to invest 169.7 million dollars this year, 375.2 million dollars next year and 1.787 billion dollars from 2020~2022, totaling about 2.33 billion dollars in investment.
Through this, the South Korean government has decided to establish a Special Purpose Company (SPC) in order to develop hydrogen charging stations by the end of November this year, and by 2022 increase the localization rate of hydrogen charging stations from 40 percent to 80 percent.
By next year, its major projects will be to focused on manufacturing hydrogen buses for demonstration, launching hydrogen storage containers for buses, and mass producing CNG equipment for South Korea. From 2020 to 2022, it is planning to expand production facilities for hydrogen cars, stack facilities, and mass-produce package-type hydrogen charging stations. The stack is one of the core components of the hydrogen cars that combines oxygen and hydrogen in the air to create electricity.
“The South Korean government plans to subsidize hydrogen cars with the aim of supplying 16,000 hydrogen cars by 2022. This will require a total budget of 402.3 million dollars by 2022, and we will be able to support it without any disruptions,” said BaekWoon-kyu, the Minister of Trade, Industry and Energy.
By 2022, the Ministry of Trade, Industry and Energy is planning to support 111.7 million dollars in Research and Development (R&D) of major component materials such as development of platinum catalyst reduction and substitute catalyst technology, as well as complete localization of stack parts. Furthermore, it will work with local governments to introduce hydrogen buses on regular bus routes in five cities nationwide next year, starting with Seoul and Ulsan this year. Afterwards, it plans to expand it to the express buses and distribute a total of 1,000 hydrogen buses by 2022. For this, Hyundai Motor plans to build a separate hydrogen bus production line at its Jeonju plant.