Evaluation of strategic directions for supply and demand of green hydrogen in South Korea

Currently, worldwide efforts are being made to replace fossil fuels with renewable energy to meet the goals of the Paris Agreement signed in 2015. Renewable energy, with solar and wind power as representative examples, focuses on hydrogen as a means of supplementing the intermittency in operation. Moreover, 17 advanced countries, including Australia and Europe, announced policies related to hydrogen, and Korea joined the ranks by announcing a roadmap to revitalize the hydrogen economy in 2019. As of 2020, the unit price of renewable energy in Korea is 0.1 $/kWh and 0.12 $/kWh for solar and wind power, respectively, which are more than five times higher than those of the world's best. The significant difference is due to the low utilization of power plants stemming from environmental factors. Consequently, securing the economic feasibility for the production of green hydrogen in Korea is difficult, and the evaluation of various policies is required to overcome these shortcomings. Currently, Korea's policy on renewable energy is focused on solar power, and despite the goal for a power generation of 57,483 GWh/year centered on offshore wind power by 2034, plans for utilization are lacking. By harnessing such energy, producing a percentage of the total green hydrogen required from the hydrogen economy roadmap can be realized, but securing economic feasibility may be difficult. Therefore, reinforcements in policies for the production of green hydrogen in Korea are required, and implementation of foreign policies for overseas cooperation in hydrogen production and import is necessary.