Korea Gas Corp. (KOGAS), the state-run natural gas supplier and a major global importer of LNG, plans to spend 4.7 trillion won (US$4.01 billion) to build hydrogen-producing facilities by 2030.
Under the plan, KOGAS will construct 25 hydrogen-producing facilities and pipelines totaling 700 kilometers to transport the gas. By 2030, KOGAS expects to supply 1.73 million tons of hydrogen annually.
KOGAS said demand for hydrogen in South Korea will reach 1.94 million tons per year by 2030 and 5.26 million tons by 2040.
KOGAS also said that with increased output, prices of hydrogen will likely fall
to 4,500 won (US$3.89) per kilogram from the current range of 6,500 won to 7,500 won (US$5.62 to 6.48) per kilogram.
KOGAS said it will import 300,000 tons of hydrogen by 2030 and 1.2 million tons by 2040.
South Korea has been seeking to boost the hydrogen economy as a new growth engine. In January, the country said it will increase the number of hydrogen fuel cell electric vehicles to about 80,000 units by 2022 as part of a broader effort to boost the hydrogen economy.