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Korea: 500 billion ‘hydrogen fund’ promoted

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The “2022 H2 Investor Day” was held in Dongdaemun-gu, Seoul, and was attended by the 2nd Vice Minister of Trade, Industry, and Energy Park Il-Joon to officially announce the launch of the hydrogen fund and to sign a public-private partnership agreement for the successful creation of the fund.

The Ministry of Trade, Industry, and Energy, as well as policy financial institutions like the Export-Import Bank of Korea and Korea Trade Insurance Corporation, public energy institutions like Korea Electric Power Corporation and Korea National Oil Corporation, members and partners of the Korea H2 Business Summit, domestic and foreign financial institutions, and international energy companies, all, attended the event.

Private businesses willingly supported the hydrogen fund because they saw the need for significant investment in the hydrogen industry. The 500 billion won fund will be created by investments from member firms and other investors as part of the Korea H2 Business Summit, which includes SK, Hyundai, POSCO, and Lotte as members. The fund will be liquidated after ten years of operation.

In order to start investing in hydrogen seriously at the start of next year, parent fund manager Mirae Asset, along with joint investment partner Stonepeak and sub-fund manager Noh&Partners, will find investors and raise money by the end of this year. The hydrogen fund is run for investment objectives in order to construct infrastructure for hydrogen production, distribution, and storage both domestically and internationally as well as to advance fundamental hydrogen technology.

To boost private investment and effectively establish a hydrogen fund, the government will improve regulatory innovation and policy support measures including financial assistance. Incentives like interest rate reductions and loan expansion will be given to projects and businesses that hydrogen fund investors participate in by policy financial institutions like Mubo and KDB. Public energy organizations including KEPCO, Korea National Oil Corporation, and Korea Gas Corporation assist small and medium-sized businesses with investments in hydrogen funds for R&D, technological commercialization, and market research. The Ministry of Trade, Industry, and Energy regularly investigates and relaxes rules pertaining to hydrogen projects and new technology development to resolve issues in the industry.

Vice Minister Park stated that hydrogen is a crucial energy source that can address both energy security and carbon neutrality, two contemporary trends.

Arnes Biogradlija
Creative Content Director at EnergyNews.Biz

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