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On-site green hydrogen production cost is expected to halve by 2030, signalling a boost to South Korea’s hydrogen ambitions, says Wood Mackenzie. Under President Moon Jae-In’s administration, the government has announced ambitious plans to become a hydrogen-based economy by 2050. This include plans for three hydrogen-powered cities by 2022 and accelerating deployments of fuel cell vehicles (FCVs), all of which have spiralled the country into a frenzied race to invest in hydrogen.
Speaking at a media briefing yesterday, Wood Mackenzie Research Director Prakash Sharma said: “Cost is the biggest challenge today as green hydrogen costs 2 - 4 times more than fossil-fuel hydrogen. This is set to change by 2030. Net-zero emissions policies, falling renewables costs, and strong business activity in electrolyser manufacturing and efficiency gains could deliver up to 50% cost decline for green hydrogen by 2030».
South Korea aims to expand hydrogen use across industry, heating and mobility sectors. The production of FCVs (including exports) will increase to 810 000 by 2022 and 6.2 million by 2040 from under 2000 units today. The government plans to import hydrogen as well as produce it domestically.