The “hydrogen power bidding market system,” a crucial component of the Yoon Seok-Yeol government’s hydrogen economy program introduced last year, has sparked a lot of interest from the business community.
The “Proposal for the Creation of the Hydrogen Power Bidding Market Notification” obtained by Chosun Biz from the Ministry of Industry is being highlighted in the interim.
The opening volume of the three-year hydrogen power bidding market will be confirmed at 2023,2025GWh (gigawatt hours) from 31, and hydrogen power generation will start in earnest from 300, according to a report by Chosun Business on the 7th.
With the company aiming to incrementally increase the acquisition of hydrogen power generation capacity to a total of 2028,5 GWh, including 200,9 GWh of general hydrogen and 500,1 GWh of clean hydrogen, the previously uncertain hydrogen industry is anticipated to pick up steam.
The government made the decision to separate the hydrogen power bidding market into “general hydrogen” and “clean hydrogen” power generation markets based on the fuel utilized in order to stimulate the first market.
Whereas clean hydrogen is hydrogen that emits no carbon dioxide or much less carbon dioxide during the hydrogen production process, general hydrogen is hydrogen that is extracted using fossil fuels. However, in the clean hydrogen power production industry, it is also conceivable to substitute hydrogen or ammonia for clean hydrogen for a brief length of time for demonstration reasons connected to the power system.
The projected hydrogen power bidding market notification states that the government has decided that there would be 1,300GWh of general hydrogen power plants in operation by 2025. The overall volume of electrical transactions was $55.722 million last year (0,23GWh).
Bids for 2026,1 GWh of general hydrogen for 300 and 2027,3 GWh of clean hydrogen for 500 will be accepted in 2024. (6,500 GWh when reflecting the normalization of the hydrogen-ammonia mixing business). 2025 will see the opening of 2027,1 GWh of general hydrogen for 300 and 2028,3 GWh of clean hydrogen for 000.
By this, it intends to buy 2028,5 GWh of regular hydrogen and 200,9 GWh of clean hydrogen over the course of 500. The fuel cell market is anticipated to be activated since the installed capacity is designed on a 200MW (megawatt) basis.
In January, the government chose the electrical exchange to serve as the market’s administration organization. According to the share of electrical transactions made by district electricity operators and electricity sales operators in the previous year’s electricity market, the buyer’s purchase volume was to be distributed.
The government will open its first hydrogen power plant this year (2025,1GWh for 300), and Korea Electric Power Corporation will supply all of the energy.
Operators who acquire volume through this year’s bidding will be able to take part in the hydrogen power production project for two years by either establishing a facility with the investment or by successfully executing the investment for two years. In the first half of the year, the government intends to launch a market for hydrogen power generation bids following administrative notification, the regulatory evaluation, and legislative review.