Seoul Boosting Subsidy for Hydrogen Buses
Key Ideas
- The South Korean government is increasing its subsidy for hydrogen fuel-cell buses in Seoul to promote eco-friendly public transportation.
- The subsidy will rise from 3,600 won to 5,000 won per kilogram of fuel, aiming to reach the goal of substituting 25% of metropolitan buses with hydrogen-powered ones by 2030.
- This move is expected to reduce operational costs by 22% and make hydrogen buses more cost-efficient compared to electric buses.
- The slow adoption of hydrogen buses in the industry is attributed to high fuel costs and the lack of infrastructure like charging and maintenance stations.
The Ministry of Land, Infrastructure and Transport in South Korea has announced an increase in the subsidy for hydrogen fuel-cell buses in Seoul, from 3,600 won to 5,000 won per kilogram of fuel, starting in March. This initiative is part of the government's efforts to promote eco-friendly public transportation and align with the 2030 Nationally Determined Contribution goal. The plan includes substituting 25% of all metropolitan buses in the greater Seoul area with hydrogen-powered buses by 2030. The ministry anticipates that the subsidy increase will reduce operational costs by 22% and bring the yearly fuel cost of hydrogen buses to levels similar to electric buses, making them more appealing to operators. However, the slow adoption of hydrogen fuel-cell vehicles in the bus industry is primarily due to the higher fuel costs in comparison to electric buses, as well as the inadequate infrastructure, such as the limited availability of hydrogen-charging and maintenance stations in the country. By enhancing the subsidy, the government aims to address these challenges and accelerate the adoption of hydrogen buses, contributing to a more sustainable and environmentally friendly urban transportation system in Seoul.