Korea Gas announced that by 2030 it intends to invest the equivalent of around 4 billion dollars in the construction of 25 hydrogen production plants and pipelines with a total length of 700 kilometres to transport the gas in South Korea.
By 2030 Korea Gas expects a distribution volume of 1.73 million tons of hydrogen per year and a national demand of 1.94 million tons per year, which, according to estimates by the state utility company, will increase to 5.26 million tons by 2040. In addition, the group assumes that the price per kg will drop from currently 6,500 to 7,500 won (5 to 6 euros) to 4,500 won (3.50 euros) thanks to the increased output. In addition to the domestic use of hydrogen, Korea Gas is also planning extensive exports.
The background to the large-scale expansion project is a plan by the Korean government to establish a national hydrogen economy. Among other things, this plan calls for a massive increase in the number of fuel cell vehicles produced in the country. While only around 2,000 such vehicles were built by 2018, the number is expected to rise to 100,000 by 2025 and 6.2 million by 2040. At the same time, the government aims to increase the number of hydrogen filling stations from 14 last year to 310 by 2022 and to 1,200 by 2040.