Domestic oil companies in South Korea, led by SK Innovation, are shifting towards blue hydrogen to achieve carbon neutrality and drive growth. Blue hydrogen, an eco-friendly alternative, captures and stores carbon dioxide during production, making it a viable decarbonization strategy. The global hydrogen market is projected to reach $411 billion by 2030, with blue hydrogen gaining traction due to its environmental benefits. SK Innovation and Hyundai Oilbank are expanding their blue hydrogen production, enhancing CCUS efficiency and cutting costs. While green hydrogen is the most environmentally friendly, blue hydrogen is currently considered a more practical option due to technology and cost considerations. The South Korean government is aligning with this trend, planning to increase carbon-free energy sources like hydrogen in power generation to 13.8-21.5% by 2050. This shift is part of the '2050 Carbon Neutrality Strategy,' which includes enacting the 'Carbon Capture, Transport, Storage, and Utilization Act' to drive small and large-scale demonstration technologies by 2030 and 2050, respectively. Experts emphasize that the move to blue hydrogen is crucial for the survival and growth of refining companies, urging a diversified portfolio that includes green hydrogen for long-term sustainability.