South Korea’s coal phase down is exposing a practical challenge that extends beyond power markets. What happens to the land, labor, and grid assets built around large thermal power plants.
In Boryeong, a city long associated with coal fired generation, local and provincial authorities are betting that small scale green hydrogen can serve as an early bridge rather than a symbolic gesture.
In January, the Boryeong City Government confirmed the start of construction on a water electrolysis based hydrogen production facility inside the Shin Boryeong power plant site. The project brings together South Chungcheong Province, Korea Midland Power, Hyundai Engineering, Techcross Water & Energy, and ISTE. The location matters as much as the technology. This is the first hydrogen project in the country to reuse idle land within a large scale coal power complex, a site once central to regional employment and energy supply.
The facility will deploy 2.5 MW of electrolysis capacity and is expected to produce around 395 tons of hydrogen annually. While modest by industrial standards, the output is framed by local authorities as sufficient to supply tens of thousands of hydrogen passenger vehicles each year. From a systems perspective, however, the numbers point to a pilot scale installation rather than a market shifting volume. At roughly 158 tons of hydrogen per megawatt per year, the project aligns with typical small electrolyzer performance assumptions, suggesting conservative design rather than aggressive optimization.
The economic argument centers less on scale and more on transition management. As coal capacity declines, regions like Boryeong face risks of job losses and reduced local tax bases. By anchoring hydrogen production at an existing thermal power site, the project seeks to preserve part of the energy value chain while testing whether legacy infrastructure can be repurposed for low carbon uses. Grid connections, water access, and industrial zoning are already in place, lowering development barriers compared with greenfield hydrogen projects.
Local authorities describe the initiative as an example of a just transition, but its ability to deliver that outcome will depend on follow on investment. A 2.5 MW electrolyzer does not replace the employment footprint of a coal unit, nor does it materially alter regional energy supply. Its value lies in acting as a platform. The city plans to connect hydrogen output to nearby refueling stations, building a localized supply chain aimed at expanding hydrogen vehicle adoption within the jurisdiction. Whether that demand materializes at scale remains uncertain, particularly as battery electric vehicles continue to dominate passenger transport growth.
There is also a broader policy signal embedded in the project. South Korea’s hydrogen strategy has often focused on large scale imports and blue hydrogen pathways. By contrast, Boryeong’s project emphasizes domestic green hydrogen production linked to existing power infrastructure. That approach reduces reliance on fuel imports but remains exposed to electricity pricing. Without preferential tariffs or long term offtake guarantees, electrolyzer utilization rates could be constrained, limiting economic performance.
Mayor Kim Dong il has framed the groundbreaking as a turning point for Boryeong’s identity, from a coal centered city to an eco friendly energy hub. From an industry perspective, the shift is more incremental than transformational. The project does not yet demonstrate a pathway to industrial hydrogen use or export oriented volumes. It does, however, provide a concrete case study for how coal plant sites can be reused, how local governments can anchor early hydrogen demand, and how small electrolyzer projects perform when embedded in legacy energy systems.
