South Korea Boosts Subsidies for Hydrogen Buses to Promote Eco-Friendly Transportation
Key Ideas
- The South Korean government is increasing subsidies for hydrogen fuel-cell buses to encourage the use of eco-friendly public transportation.
- This initiative aligns with South Korea's 2030 NDC goal and plan to replace 25% of metropolitan buses in Seoul with hydrogen-powered ones by 2030.
- The slow adoption of hydrogen buses is attributed to high fuel costs and the lack of necessary infrastructure like charging and maintenance stations.
- The subsidy increase is projected to reduce operational costs by 22% and make yearly fuel expenses comparable to electric buses.
The South Korean government is set to raise its subsidy for hydrogen fuel-cell buses from 3,600 won per kilogram of fuel to 5,000 won, starting next month. This move is part of efforts to promote the use of eco-friendly public transportation. Since September 2021, the transportation ministry has been providing subsidies for hydrogen fuel-cell buses in line with the country's 2030 NDC goal. The goal includes plans to replace a quarter of all metropolitan buses in the greater Seoul area with hydrogen-powered buses by 2030. The sluggish adoption of hydrogen buses has been attributed to high fuel costs compared to electric buses, as well as the limited availability of hydrogen charging and maintenance infrastructure in South Korea. The subsidy increase is expected to help lower operational costs by 22% and bring down yearly fuel expenses to levels similar to those of electric buses, making hydrogen buses a more financially viable option for public transportation.