On May 4, 2022, an amendment to the Hydrogen Economy Promotion and Hydrogen Safety Management Act was passed at a subcommittee of the Trade, Industry, Energy, SMEs and Startups Committee at the National Assembly. This issue brief summarizes the amendment, discusses its implications for carbon neutrality, technology and market development, and suggests what must be improved in order accelerate a balanced approach towards a net-zero transition.
Highlights
1. Definition of clean hydrogen (Article 2.10): Hydrogen is divided into carbon-free hydrogen, low carbon hydrogen, and low carbon hydrogen compounds depending on greenhouse gas emissions produced during production and import.
2. Certification of clean hydrogen (Article 25.2): It prepares the legal basis to certify clean hydrogen by grade for hydrogen or hydrogen compounds meeting certification criteria prescribed by Presidential Decree.
3. Obligations to sell and use clean hydrogen (Article 25.5): With obligations to sell and use clean hydrogen in place, fuel suppliers and power generation business entities are obligated to sell and use clean hydrogen for most hydrogen facilities, such as hydrogen vehicles, construction machinery, military logistics, ships, aviation, and power generation.
4. Obligations to purchase and supply power generated from hydrogen (Article 25.6): Power business entities are obligated to purchase or supply power generated from hydrogen above a certain percentage prescribed by Presidential Decree.
5. Definition of the hydrogen industry (Article 2.7): The definitions of the hydrogen industry, hydrogen fuel supply facilities, and hydrogen fuel using facilities, which are limited to hydrogen for fuel cells, are expanded to include the equipment that uses hydrogen, such as fuel cells and hydrogen gas turbines.