The government and the private sector have inaugurated a hydrogen convergence alliance to secure a new competitive edge in the hydrogen industry and explore promising new exporting opportunities.
Korea has been at the forefront since it mass-produced a hydrogen car for the first time in the world in 2013. But now the nation is in danger of handing over that advantage to advanced countries, due to insufficient infrastructure, charging stations and the slow development of related industries. In reality, Korean local governments and public organizations own 78 hydrogen cars, and only 10 hydrogen charging stations are in operation.
On the other side of the world, such public-private sector consultative bodies as H2USA in the United States and HySUT in Japan and H2Mobility in Germany, U.K. and France have already been formed. Europe has decided to invest 14.7 trillion won to tap the EV market by 2020, while Japan began to supply hydrogen cars to the private sector last year. China produced 33 hydrogen buses to launch verification this year and set aside 200,000 yuan (about 33 million won) in subsidies per unit. Countries are scrambling to gain a competitive advantage in the hydrogen car market. In this regard, the Korean central, local governments, automakers and gas companies have decided to join forces in accelerating the technology development and supply of hydrogen cars. In a speech at the inaugural meeting of the Hydrogen Convergence Alliance on Aug. 24, Minister Joo Hyung-hwan of the Ministry of Trade, Industry and Energy (MOTIE) said, “Korea has more favorable conditions, including a better position to supply hydrogen with a focus on petrochemical complexes and high population density than other countries.”
He called for pilot projects to help secure a competitive edge. Business circles maintained that the nation can have a competitive edge if infrastructure is built.
Hyundai Motor Vice Chairman Kwon Moon-shik said in a meeting with reporters, “Hyundai Motor has the world’s best technology in the hydrogen car sector.”
He predicted that EV cars will ultimately be replaced by hydrogen cars, following a shift from internal combustion to EV. Any country with sufficient infrastructure will be armed with a competitive edge, and chances are high that Korea can make hydrogen cars an export industry if the nation makes an aggressive effort to create domestic demand in the hydrogen market, which is still in an embryonic stage.
The Hydrogen Convergence Alliance, a joint consultative body formed by the public and private sectors, plays a part as a “control tower” to supply and spread hydrogen cars and expand hydrogen energy. Hydrogen energy has emerged as a promising future energy, but related functions have been divergent among ministries, so public demand has been raised to form a consultative body to address the diversity of related companies.
Participating in the alliance are such ministries as the MOTIE, the Ministry of Land, Infrastructure and Transport (MOLIT) and the Environment Ministry, and local governments, including Ulsan Metropolitan City, Kwangju Metropolitan City, and Chungcheongnam-do. From the private sector, hydrogen car manufacturers, parts makers, hydrogen production and distribution companies as well as hydrogen charging station installation firms are also joining forces.
Recognizing the need for expanding such infrastructure as charging stations, the government decided to establish a special purpose company in charge of the installation and operation of hydrogen charging stations. The MOTIE plans to install 100 charging stations by 2020. A pilot charging station will be set up in Gwangju, Ulsan and Changwon this year. Twenty charging stations will be installed in expressway resting areas by 2020. To this end, related regulations will be dramatically eased.
Business communities and local governments are firing on all cylinders to tap the hydrogen market. Hyundai Motor plans to release hydrogen bus models late this year. The automaker plans to put on the market by 2018 new models, which are lower in price and better in quality than the conventional Tucson hydrogen cars. The price of hydrogen cars will be lowered from current 85 million won to a range of 60 million won. If 27.5 million won in subsidies is counted, buyers will be able to purchase hydrogen cars at a price of about 30 million won.
Gwangju Metropolitan City is launching a pilot car sharing project using 15 to 20 hydrogen cars late this year, while Ulsan Metropolitan City plans to implement a pilot hydrogen car taxi project. The government targets to supply hydrogen cars and export 14,000 units by 2020 by giving incentives for purchasing hydrogen cars and those similar to incentives for operating EV cars.
