The Economic Impact of Fuel Cell Expansion in South Korea
Key Ideas
- South Korea aims to significantly increase the use of green and blue hydrogen by 2050, with plans for clean hydrogen production and consumption targets.
- The South Korean government is promoting the expansion of hydrogen fuel cells (FCs) as a new energy source to reduce greenhouse gas emissions and promote renewable energy.
- Through the implementation of the Hydrogen Economy Promotion and Hydrogen Safety Management Act, a tender market for FCs has been established to drive the deployment of 200 MW of new FCs annually from 2023 to 2036.
- An economic analysis using the input-output framework is being conducted to assess the impact of FC expansion on production, value-added, job creation, and wages in other sectors of the economy.
The article discusses the increasing global interest in utilizing hydrogen as a means of reducing greenhouse gas emissions, with a focus on South Korea's plans for clean hydrogen production and consumption targets. The South Korean government has set ambitious goals to secure an annual production capacity of green and blue hydrogen, aiming for a significant portion of all hydrogen to be green or blue by 2050. To drive the expansion of clean hydrogen, a clean hydrogen power tender market is set to open in 2024, providing a stable demand for clean hydrogen.
Fuel cells (FCs) have been rapidly adopted in South Korea due to their advantages, including lower emissions and high utilization rates. The government recognizes FCs as a new energy source and is promoting their expansion through various policies and initiatives. By amending the Hydrogen Economy Promotion and Hydrogen Safety Management Act, a tender market for FCs has been established to deploy new FCs connected to the national power system each year.
A quantitative assessment of the economic impacts of FC expansion is underway to understand the effects on production, value-added, job creation, and wages in other sectors. This analysis will provide policymakers with valuable insights to justify the expansionist policy and secure budget allocations. By adopting the input-output framework, the study aims to determine the economic effects of FC deployment in South Korea, contributing to decision-making processes and national planning efforts.
Topics
Fuel Cells
Renewable Energy
Government Policy
Energy Transition
Green Technology
Job Creation
Sustainable Development
Economic Analysis
Investment Impact
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