Korean govt to inject 4 trillion won into hydrogen and CCUS technologies

The government is pressing ahead with a preliminary feasibility assessment for up to 4 trillion won in technological R&D in new energy businesses such as hydrogen and carbon dioxide capture, use, and storage technology (CCUS). By November, a ‘industrial and energy research and development (R&D) plan’ will be in place.

Park Ki-young, Vice Minister of Trade, Industry, and Energy, made this comment on the 29th during a carbon neutrality meeting with leaders of firms in the Energy Alliance.

To encourage technical innovation that breaks the limit in the energy industry, the Ministry of Trade, Industry, and Energy is encouraging large-scale yeta R&D projects in domains such as green hydrogen and CCUS. A hydrogen cluster construction project worth 1,273.9 billion won, as well as policies to demonstrate new technologies for CCUS worth up to 3 trillion won over the next 10 years and to establish a foundation, are in the works in addition to the inter-ministerial hydrogen technology development project to revitalize the hydrogen economy.

It intends to come up with a carbon-neutral innovation strategy for each area, such as energy, industry, and transportation, by the end of the year, by actively reflecting industry perspectives.

In addition, it intends to create a variety of assistance measures, including financial help, to encourage the industry’s voluntary reduction efforts. The government budget for carbon neutrality in 2022 is 12 trillion won, with the Ministry of Industry and Trade accounting for 28 percent, or 3.4 trillion won.

Vice Minister of Industry Park Ki-young stated, “The government will assist firms’ efforts by mobilizing all policy instruments to develop future food industries such as the second semiconductor in the energy sector, such as hydrogen, offshore wind power, hydrogen turbines, and CCUS.” Now is the time to transform the national challenge of carbon neutrality into a new growth engine for our economy and a chance to generate employment,” he added.

Meanwhile, the conference was planned to inform the energy industry about the development of the government’s carbon-neutral policy, including the 2050 carbon-neutral scenario and the 2030 National Greenhouse Gas Reduction Goal (NDC) rise, as well as gather feedback and recommendations. The Energy Alliance launched the ‘Energy Industry Promotion Task for the Realization of a Carbon Neutral Society,’ indicating that the private sector will take a more active part in the carbon neutralization process. It underlined the importance of broadening the foundation for a carbon-free transition.