President Chae Hee-bong of Korea Gas Corp. (Photo: KOGAS)

Korea Gas Corp. is to set aside 4.7 trillion won ($4 billion) to build hydrogen infrastructure and develop related technologies by 2030, as part of the nation’s push toward next-generation energy, according to the state-run natural gas company.

The hydrogen plan by Kogas comes as a followup to the Moon Jae-in administration’s hydrogen road map unveiled in January, which aimed to produce 6.2 million hydrogen-powered cars and distribute 15-gigawatt fuel cells for power generation by 2040. “Through the road map, we expect to create 50,000 jobs by 2030 and grow the hydrogen industry as the nation’s key industry,” said Kogas CEO Chae Hee-bong.

The firm said it plans to form an infrastructure base for the hydrogen market to grow naturally, and to lower production costs through an economy of scale.

Kogas is slated to build 25 hydrogen production facilities by 2030 by making use of its 4,848 kilometers of pipes and 403 supply management offices. It will build hydrogen pipes in key cities nationwide by 2022 to distribute hydrogen. It also plans to produce and import hydrogen from overseas countries to be capable of supplying massive amounts of hydrogen for power generation.

Through economies of scale, Kogas expects to lower the supply cost of hydrogen to 4,500 won per kilogram by 2030 from the current 7,000-8,000 won. After 2030, it plans to lower the price to 3,000 won by producing and importing the energy overseas.

Kogas will also invest around 300 billion won in research and development for the technological independence of the entire value chains of the hydrogen industry.

It aims to complete the localization of key equipment by 2030. It will foster future technologies such as electrolysis of water in cooperation with industries and academics.

The utility’s goal is to complete the localization of key equipment by 2030.

It will also support future technologies, including electrolysis of water in cooperation with both industries and academics.

“Through the road map, we expect to create 50,000 jobs by 2030 and grow the hydrogen industry as the nation’s key industry,” said Kogas CEO Chae Hee-bong.

The hydrogen production investment will help with the Korean government’s efforts to establish a national hydrogen economy. The country’s large-scale expansion project will, among other things, call for a huge increase in the number of fuel cell vehicles (FCVs) produced in South Korea.

While only about 2,000 FCVs were built last year, this number is expected to increase to 100,000 by 2025 and 6.2 million by 2040. During the same time frame, the nation’s government plans to boost the number of hydrogen refueling stations from the current 14 to 310 by 2022 and to 1,200 by 2040.

State-run Korea Gas Corp. (Kogas) is expanding its global presence in the liquefied natural gas market with its robust technologies and overseas networks.

The company is currently participating in 25 global projects in 13 nations, including the exploration, development and production of natural gas. It also includes liquefaction of LNG and the construction and operation of gas pipelines and terminals overseas.

Last year, Kogas sold 36 million tons of LNG in Korea after purchasing from Qatar, Oman, Australia, the US, Malaysia and Russia. It has now secured enough amount of natural gas that can be used for another six years.

Despite Korea’s relatively short history of exploration, Kogas has succeeded in gas exploration in Mozambique and Myanmar. In Area 4 of the Rovuma basin in northern Mozambique, Kogas is pursuing the Coral floating LNG and Rovuma LNG projects, the largest in Korea’s resource development history.

In Myanmar, it also succeeded in producing natural gas from the nation’s A-1/A-3 offshore wells.