South Korea has opened its 2026 hydrogen power auction with 500 GWh of annual procurement for clean hydrogen electricity, down from 3,000 GWh in 2025 and 6,500 GWh in 2024.
A separate tender offers 930 GWh per year for general hydrogen power. The reduced clean hydrogen volume and stricter bid evaluation criteria raise the bar for developers seeking long-term power contracts.
Announced by the Ministry of Climate, Energy, and Environment on October 30, the hydrogen power auction introduces a preliminary assessment based solely on non-price criteria, with price and non-price factors each accounting for 50% of the final evaluation. Preferred bidders in the clean hydrogen market are expected to be selected around June 2027. Projects must begin generation by 2030, with a grace period of up to three years for delays.
How the hydrogen power auction contracts work
The clean hydrogen market offers successful bidders 15-year contracts, providing a long-term revenue framework for eligible projects. However, the reduction in annual procurement limits the volume of generation that can secure support through this auction.
The decline from 6,500 GWh in 2024 to 500 GWh in 2026 does not necessarily indicate a comparable reduction in future hydrogen consumption or installed capacity. It does, however, narrow the procurement opportunity for developers preparing dedicated hydrogen-fired plants or facilities designed for hydrogen co-firing.
The tender volumes are expressed in gigawatt-hours per year, measuring electricity output rather than installed capacity. Investment requirements will depend on plant size, operating hours, conversion efficiency, fuel costs, and the technical configuration of each project.
The three-year grace period for delays acknowledges the construction requirements of hydrogen co-firing and dedicated hydrogen-fired facilities. Developers must still manage equipment delivery, fuel availability, plant readiness, and contractual commissioning obligations.
How the hydrogen power auction scores bids
The revised assessment system gives non-price factors greater influence over project selection. Previously, price accounted for 60% of the evaluation and non-price criteria for 40%. Under the new framework, a preliminary stage assesses bids solely on non-price criteria, followed by a final assessment in which price and non-price factors each carry a 50% weighting. The preliminary stage will shortlist bids equivalent to 1.5 times the tender volume.
Non-price considerations include the grade of clean hydrogen used, fuel procurement stability, greenhouse gas reductions, and contributions to domestic industry and the economy. The revised weighting could favor projects with credible long-term supply agreements and stronger emissions performance, although the outcome will depend on the detailed scoring methodology and evidence required from bidders.
South Korea’s clean hydrogen certification framework sets an emissions threshold of no more than 4 kilograms of carbon dioxide equivalent per kilogram of hydrogen produced. Eligibility therefore depends on certified emissions intensity rather than whether hydrogen is simply marketed as green or low carbon.
Meeting that threshold does not eliminate the need to assess the full generation pathway. The climate impact of hydrogen-fired electricity also depends on fuel processing and transport, conversion efficiency, and emissions from any additional fuels used in co-firing.
The government has excluded coal-ammonia co-firing from the clean hydrogen power auction starting in 2026, aligning the change with its plan to phase out coal-fired power generation by 2040. The decision narrows the technologies eligible for support and separates clean hydrogen procurement from efforts to extend the use of existing coal assets.
The exclusion shifts the clean hydrogen auction toward other eligible generation configurations. Developers must demonstrate compliance with the market’s fuel and emissions requirements rather than rely on coal-ammonia co-firing as a transitional option.
The separate general hydrogen tender
The separate general hydrogen tender offers 930 GWh of annual procurement under a 20-year contract term. Successful projects are required to begin generation by 2029 following a two-year preparation period. The ministry has also strengthened environmental assessment criteria for this segment, including an indicator covering carbon capture, utilization, and storage plans.
The general hydrogen market has different fuel eligibility and contractual requirements, so its volume should not be treated as electricity generated exclusively from certified clean hydrogen. Its environmental performance will depend on fuel emissions intensity and the effectiveness of any proposed carbon capture measures.
The earlier commissioning deadline also creates a different delivery challenge. Developers must secure equipment, complete construction, arrange grid connections, and establish reliable fuel supply within a shorter period than projects under the clean hydrogen tender.
The revised evaluation framework addresses project quality, but it does not resolve the underlying economics of hydrogen-fired generation. Production, transport, storage, and conversion costs all influence the final price of electricity. Developers must also secure sufficient fuel to meet contracted output over the life of their agreements.
The greater emphasis on fuel procurement stability reflects these risks. Competitive electricity pricing will carry less weight if a project cannot demonstrate a reliable supply chain or satisfy the required emissions criteria.
With only 500 GWh per year available in the clean hydrogen auction, developers face a more selective procurement process than in previous rounds. The results will show whether projects can meet the revised requirements at commercially viable prices, while the separate general hydrogen tender will test a different set of fuel, environmental, and delivery conditions. For wider context, see the the IEA overview of hydrogen and our report on Germany’s awards for hydrogen ready gas power.
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