Overview
This issue paper presents a stage-by-stage cost analysis of importing green hydrogen from Australia to Korea, covering conversion, maritime shipping, storage, re-conversion, and distribution. The analysis estimates import costs for both ammonia and liquefied hydrogen under different technological scenarios.
Executive Summary
A Comprehensive Assessment of Costs and Emissions in the Imported Green Hydrogen Value Chain for Korea
Under current technology assumptions, ammonia imports were found to be more cost-effective (USD 2.80–7.61/kgH₂) than liquefied hydrogen (USD 5.27–9.41/kgH₂). The most economical pathway involves transporting ammonia via LNG-powered vessels and distributing it using battery electric vehicles (BEVs), with estimated costs of USD 4.30/kgH₂ by 2030 and USD 3.24/kgH₂ by 2040.
-Ammonia offers roughly 1.8 times higher storage density than liquefied hydrogen in the same vessel volume, along with lower boil-off rates, resulting in reduced losses during shipping and storage.
-At the re-conversion stage, ammonia cracking was approximately 8.7 times more costly than hydrogen gasification due to significantly higher energy requirements.
-Despite being carbon-free, ammonia-fueled vessels are not yet cost-competitive with LNG-fueled vessels in the absence of carbon pricing. Achieving price parity would require a sufficiently high carbon price.
-For inland distribution in Korea, hydrogen transport using BEVs is already more cost-efficient than internal combustion engine vehicles (ICEVs).
Based on these findings, the study recommends the following to reduce overall costs and emissions across the value chain:
(1) Increase investment in ammonia cracking technology to improve energy efficiency.
(2) Expand R&D to scale up storage capacity and lower boil-off losses.
(3) Internalize carbon pricing in the shipping and distribution stages to reflect associated emissions.
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