2050 Carbon Neutrality
Hydrogen was offered by LG Chem as one of the key techniques for meeting the 2050 carbon neutrality target.
LG Chem revealed on the 8th in an online live investor briefing that hydrogen technology research is moving in two directions. In terms of ‘using hydrogen,’ it’s a way for converting LG Chem’s high-carbon process to a low-carbon process, as well as a method for creating blue or green hydrogen from a ‘environmentally-friendly hydrogen production’ standpoint.
This is the first time LG Chem has made a detailed presentation about the future of hydrogen technology. While big domestic chemical companies are announcing comprehensive intentions to enter the hydrogen sector, LG Chem has taken a cautious approach.
Last year, Lotte Chemical launched an environmentally friendly hydrogen growth strategy called “Every Step for H2,” which covered 30 percent of domestic hydrogen consumption, while Hanwha Solutions is working on a high-pressure container for green hydrogen production, storage, and transportation. Gas turbine renovation with hydrogen co-fired power generation is being advocated.
LG Chem declared that it will move the deadline for achieving ‘carbon-neutral growth’ from 2050 to 2030, 20 years earlier than previously planned, and reach ‘net zero’ in 2050. Carbon-neutral growth indicates that carbon emissions will stay the same in 2030 as they were in 2019.
Furthermore, net-zero signifies that no net carbon emissions are produced. As a result, LG Chem predicted that, in 2050, a total of 20 million tons of carbon emissions would need to be lowered more than the prior projection in order to meet the revised objective. This is the amount of carbon generated by 8.3 million fossil-fueled automobiles over the course of a year, which is offset by planting 140 million pine trees.
Overseas expansion strategy
It is predicted that Korean enterprises would be able to extend their export of production facilities and parts such as water electrolysis stacks to countries where renewable energy-based hydrogen production projects, such as wind power in Germany and solar power in China, will be active.
Because a transport project with a 1600-mile pipeline is underway in the United States, the export of tube trailers, hydrogen storage tanks, and related parts and equipment is considered promising. In the realm of hydrogen mobility, China, which has implemented a strategy of cutting tariff rates on critical elements of hydrogen fuel cells, is seen as promising.
As a result, it is determined that advancements in hydrogen automobile parts, fuel cells, and charging infrastructure equipment are achievable. Japan and Australia are two nations that are aggressively promoting environmentally friendly hydrogen generation and liquid hydrogen delivery systems. The export of water electrolysis stack and liquid hydrogen transport-related components, parts, and equipment has been determined to be promising for the two nations.
As a result, KOTRA noted that knowledge exchange among participating enterprises, collaborative planning research promotion, and commercialization collaboration are all important to enhance product production and supply based on demand-related industry demands. It is also mentioned that worldwide hydrogen firms are attempting to grow the size of production equipment and ensure sufficient demand in order to maintain price competitiveness, which is a crucial aspect in the hydrogen market’s preoccupation.
According to KOTRA, Korean businesses will gain an advantage in the first competition by combining their hydrogen fuel cell and hydrogen-electric vehicle components manufacturing technologies with abroad companies’ local production and marketing infrastructure.
Korean Air joins hydrogen hype
Korean Air has begun a project to pioneer the Korean hydrogen fuel infrastructure in order to prepare for the future of carbon-neutral flying. Korean Air, Incheon International Airport Corporation (IIAC), Airbus, and Air Liquide signed a Memorandum of Understanding (MOU) on February 9 to collaborate on delivering aviation hydrogen fuel and constructing essential infrastructure.
Soo Keun Lee (Executive Vice President and Chief Safety & Operation Officer, Korean Air), Hyoung-Wook Jeon (Vice President of Infrastructure Division, IIAC), Fabrice Espinosa (President, Airbus Korea), and Guillaume Cottet attended the ceremony, which took place at IIAC’s headquarters in Incheon (President and Representative Director, Air Liquide Korea).
The MOU is in line with Airbus’ goal of developing the world’s first zero-emission hydrogen-powered commercial aircraft by 2035, and it validates Korean Air’s role in ushering in this new energy paradigm. The MOU allows the parties to work together actively in a variety of areas, including creating hydrogen infrastructure at airports, formulating a strategy for integrating hydrogen, and ground handling logistics.
Korean Air will concentrate its expertise on overall operational tasks, such as ground handling planning, maintenance, and flight operations, while IIAC will focus on airport research and development. Airbus and Air Liquide will assess domestic demand for hydrogen-powered aircraft and develop a strategy for hydrogen fuel deployment, respectively.
Hydrogen Era
The government recently declared that by 2026, it will push the inclusion of 20% hydrogen in city gas, which drew a lot of attention. Hydrogen is blended with city gas and fed into the city gas network to minimize greenhouse gas emissions. This suggests that in as little as four years, heating with hydrogen and cooking rice can become a regular habit.
As a result, the ‘hydrogen age’ is rapidly coming, in which hydrogen will be utilized as a fuel for transportation, industrial activities, and as a primary source of energy in households.
However, there are still tasks to be completed, such as legislation and infrastructural construction, before the hydrogen economy can really take off.
The framework for policy execution for developing a hydrogen ecosystem has been built out progressively, according to the government on the 13th.
In January 2019, the Ministry of Trade, Industry, and Energy established a strategy to resuscitate the hydrogen economy, and in February of the following year, the ‘Act on the Hydrogen Economy Fostering and Hydrogen Safety Management’ (Hydrogen Act) went into effect.
The Hydrogen Economy Committee, a command center for the whole hydrogen economy, was founded in July of that year, and the ‘Hydrogen Economy Implementation Basic Plan’ was developed in November of that year.
The first legal strategy developed in response to the Hydrogen Act’s implementation is to supply all 27.9 million tons of hydrogen per year to be utilized entirely with clean hydrogen by 2050 and to increase domestic self-sufficiency to more than 60%.
As a result, by 2050, hydrogen will account for 33% of total energy consumption in Korea, surpassing petroleum as the leading energy source.
By 2050, it hopes to have more than 2,000 hydrogen chargers around the country.
Companies, in particular, reacted positively to the government’s lofty aims and invested heavily in them.
The ‘Korea H2 Business Summit,’ which began in September of last year, promised that by 2030, it will spend 43 trillion won in the hydrogen industry.
However, legislation enacted by the government and businesses to promote a full-fledged hydrogen economy has been put to the test.
Even after years have gone by, the passage of the hydrogen legislation modification suggested last year has become further away.
Clean hydrogen is defined in the modification to the Hydrogen Act, which also includes a clean hydrogen certification system and a clean hydrogen power generating obligatory purchase scheme (CHPS).
The scope and support procedures for collecting government subsidies for the hydrogen sector were defined.
However, political opinion was divided on whether blue hydrogen should be included in the scope of clean hydrogen alongside green hydrogen, and it was unable to go beyond the National Assembly’s barrier.
Green hydrogen, which does not release carbon dioxide throughout the manufacturing process, and blue hydrogen, which emits less carbon dioxide by capturing and storing it, are both clean hydrogen, according to the amendment.
However, several members from the ruling party opposed at a previous meeting of the National Assembly Standing Committee, claiming that only green hydrogen should be regarded as clean hydrogen.
Green hydrogen is produced without emitting carbon dioxide by decomposing water using renewable energy sources such as solar and wind power, however, it is difficult to create immediately with present technology.
Many people believe that establishing an early hydrogen ecosystem that includes blue hydrogen is vital, however, some in the ruling party believe that only green hydrogen should be permitted.
Last month, during a bill subcommittee meeting, the opposition party argued that hydrogen produced by nuclear power should be included in clean hydrogen, delaying the amendment bill’s approval even again.
The implementation of CHPS was delayed as the opposition and opposition parties alternated in delaying the passage of the bill, creating delays in the expansion of hydrogen purchases by power plants and the construction of hydrogen fuel cell facilities.
Given the timing of the presidential election in March, passing the amendment in the first half of the year may be tough.
The hydrogen economy also prioritizes infrastructure development, technological development, and resident acceptability.
Despite the subsidies, hydrogen cars continue to deliver 20,000 units per year, and the pace of infrastructure development is slower than for electric vehicles.
At the end of last year, there were 19,404 hydrogen automobiles and 126 hydrogen chargers registered across the country.
When compared to the government’s target of delivering 2.75 million hydrogen automobiles and 1,200 hydrogen chargers by 2040, this is tiny.
The sluggish rate of infrastructure growth is due to the difficulty in gaining inhabitants’ consent.
In the case of hydrogen fuel cell power plants and charging stations, there have been a number of instances when the installation of facilities has been canceled because to resistance from local people.
Green hydrogen, or environmentally friendly hydrogen, is still a long way off.
The majority of hydrogen used today is reformed hydrogen (gray hydrogen), which is cheap but produces carbon dioxide during manufacturing.
Water electrolysis and carbon storage, capture, and utilization (CCUS) technologies, all of which are required for clean hydrogen production, still have a long way to go before being commercially viable.
Green hydrogen mass production is still in the demonstration stage.
Concerns have been expressed regarding the design for a hydrogen economy that is not technologically supported.
“The primary purpose of the hydrogen economy is to minimize carbon dioxide emissions,” said Deok-Hwan Lee, emeritus professor at Sogang University. “However, the hydrogen production technology we can utilize currently would rather raise greenhouse gas emissions.”
