South Korea Boosts Subsidy for Hydrogen Buses to Drive Sustainable Public Transport
Key Ideas
  • The South Korean government plans to increase the subsidy for hydrogen fuel-cell buses from 3,600 to 5,000 won per kilogram to promote eco-friendly public transportation.
  • This initiative aligns with the country's goal to substitute 25% of all metropolitan buses in Seoul with hydrogen-powered vehicles by 2030.
  • The slow adoption of hydrogen buses is attributed to high fuel costs and the lack of hydrogen-charging and maintenance facilities in South Korea.
  • The increased subsidy is anticipated to reduce operational costs by 22% and make hydrogen buses more economically competitive with electric buses.
The South Korean government is set to raise its subsidy for hydrogen fuel-cell buses from 3,600 to 5,000 won per kilogram in a move to bolster eco-friendly public transportation. This decision is part of the Ministry of Land, Infrastructure and Transport's strategy to support sustainable transport options. Since September 2021, subsidies have been provided to encourage the adoption of hydrogen fuel-cell buses in line with South Korea's 2030 Nationally Determined Contribution goal. The aim is to replace a quarter of all metropolitan buses in the greater Seoul area with hydrogen-powered vehicles by the end of this decade. However, the bus industry has been slow in embracing hydrogen buses, mainly due to the higher fuel costs compared to electric buses, coupled with the limited availability of hydrogen infrastructure in the country. The ministry believes that the subsidy increase will lead to a 22% reduction in operational expenses, bringing the annual fuel costs of hydrogen buses closer to those of electric counterparts. This adjustment is expected to make hydrogen buses a more financially viable and attractive option for public transportation operators in South Korea, contributing to the country's efforts in promoting sustainable and environmentally friendly mobility solutions.
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