Korea is a country with virtually no natural energy resources. Recognizing this, the Moon Jae-in administration set an ambitious goal: “At least in hydrogen energy, which does not exist in nature, we will lead the world.” Many companies trusted that banner and boldly invested. In fact, Korea was once among the world’s leading countries in hydrogen power generation.
Now, however, that banner is being quietly lowered. The Ministry of Climate, Energy and Environment, launched last October, is effectively putting the brakes on hydrogen power generation across the board. The concerns are as follows. First, messages are emerging that no bidding market will open this year in the fuel cell sector. Second, hydrogen co-firing power generation is restricted to using only domestically sourced green hydrogen as fuel, making market entry difficult for operators. It is virtually impossible to procure green hydrogen stably and at large scale year-round within Korea using renewable energy alone. Third, permits for new hydrogen-only power generation projects have effectively been halted due to uncertainties in technology and fuel procurement. Fourth, ammonia co-firing power generation — a carbon-free fuel — is also blocked from market development on the grounds that it extends the lifespan of coal-fired power plants. All four pillars of hydrogen power generation are shaking simultaneously.
Companies that trusted the government and invested now find themselves in a state of disillusionment. SK Ecoplant has completed and is operating a fuel cell plant in Gumi, North Gyeongsang Province, while Doosan Fuel Cell is operating one at the Saemangeum Industrial Complex in Gunsan, North Jeolla Province. Doosan Enerbility, with government support, successfully developed a mid-sized hydrogen-only gas turbine combustor and built a mass-production system. Yet the government has closed the door to the markets these plants were meant to serve. The factories have been built and are waiting for customers, but the market itself is not opening. Equipment manufacturers, hydrogen and ammonia suppliers, and energy operators that prepared for carbon-free power generation using hydrogen and ammonia are likely feeling a deep sense of betrayal, thinking, “From now on, we cannot trust government policy.”
Of course, completely separating energy policy from politics has always been difficult, throughout history and across the world. It is common for the broad direction of energy policy to shift with each new administration, so the point is not to argue the merits of past policies. But we now stand at a crossroads where vague signals must be withdrawn and clear decisions made. If the government intends to abandon hydrogen power generation, it must say so clearly and swiftly. Only then can companies that have already invested wind down their assets and prevent further losses. Conversely, if it intends to continue down the path of hydrogen power generation, the government must take on the role of pump-primer or backbone. Subsidies and institutional support are not optional but essential in the early stages of a new industrial ecosystem. Companies that have already invested, and those considering investment, are all hanging on the government’s every word.
Half-hearted silence is the worst signal. There is already a precedent for hope. Doosan Enerbility, using early government support as a springboard, entered the gas turbine sector and ultimately exported a total of 12 units to the United States. The company is currently developing hydrogen turbines and combustors in parallel, and once domestic demonstrations are carried out, it is expected to achieve results in global markets before long.
If the government waters the seed of hydrogen power generation, Korean companies can expand into global markets and become leading exporters of hydrogen power plants and technologies. Conversely, if this seed is uprooted now, we will later pay a heavy price for belatedly entering markets already dominated by other countries. We await the government’s wise answer: whether to water the seed or pull it up.
