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Korea to cut 25% of natural gas for hydrogen production

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The Ministry of Trade, Industry, and Energy will temporarily reduce the rate of natural gas used to produce hydrogen, which is needed to charge hydrogen automobiles, by 25% starting in November.

Natural gas for hydrogen generation for car charging is set at 14.1 won, according to the Ministry of Industry on the 31st, which is roughly 25% less than the raw material cost of natural gas for transportation. From November 2021, the cut-off period is three years. The green hydrogen diffusion rate is used to determine whether or not to extend.

The government intends to ensure the price competitiveness of hydrogen derived from natural gas and the early adoption of green hydrogen. The supply of hydrogen automobiles, as well as the manufacture and introduction of blue hydrogen, will be boosted as a result of this.

Natural gas used for hydrogen extraction is now priced differently depending on the application. It is divided into three categories based on the ultimate use of hydrogen: transportation/industrial, fuel cell, and power production.

There will be advantages for the LNG bunkering business as well. Ships that travel between Korea and other nations use LNG as a fuel source and export it. If you do, you will be repaid the entire amount of the LNG import costs.

Previously, the government began to resuscitate the LNG bunkering business for ships as LNG-powered ships grew in popularity as the International Maritime Organization (IMO) tightened ship exhaust gas restrictions. The formation of a natural gas industry for ships, for example, requires reorganizing laws and processes.

Arnes Biogradlija
Creative Content Director at EnergyNews.Biz

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