01 POWER ISLAND / 02 H2+NH3 / KOR-Hydrogen-Economy-Roadmap-of-Korea_REV-Jan19

Hydrogen fueling stations: ensure the early expansion of stations and their economic efficiency

Domestic supply (cumulative) : 310 stations in 2022 → 1,200 stations in 2040

Hydrogen fueling stations: expand support Ensure stable power supply

Provide installation subsidy to promote the initial expansion of hydrogen fueling stations.

- Establish hydrogen fueling stations in transportation hubs, including central urban areas and highway rest stops, and bus and taxi garages.

* Status of support for hydrogen fueling stations: Ministry of Environment (ME):

-Provide different installation subsidies by type of fueling station to promote the expansion of different types of fueling stations in accordance with regional characteristics.

< Hydrogen Fueling Station Types and Installation Costs >

Hydrogen Pipeline Connection Type (based on existing networks in three cities, 200km)

About KRW 2.7 billion

Facility construction : KRW 1.8 billionSite construction: KRW 0.9 billion

Hydrogen Gas Transportation Type (based on tube trailers)

About KRW 2.6 billion

Facility construction : KRW 1.7 billionSite construction: KRW 0.9 billion

City Gas Extraction Type (based on installed extractors)

About KRW 5.6 billion

Extractor installation : KRW 2.2 billionFacility construction : KRW 2.1 billionSite construction: KRW 1.3 billion

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Offer subsidies for operation of hydrogen fueling stations to induce construction cost reductions and generation of additional revenue.

* Installation subsidy in Japan: support provided for 50 to 66 percent of installation cost (approximately KRW 1.8 to 2.9 billion) / Japan’s operating subsidy: 66 percent (up to KRW 2.2 billion)

hydrogen fueling stations (leasing of Hydrogen vehicles(FCEV), etc.).

*HyNet (Hydrogen Network): Korea Gas Corporation, Hyundai Motor, suppliers, and fueling equipment companies plan to build about 100 hydrogen fueling stations with government subsidies by 2022.

**In the case of CNG, the standard number cars is set according to the size of each fueling station.

Expand private-led autonomous hydrogen fueling stations.

- Expand the market for autonomous fueling stations and convert LPG and CNG fueling stations into dual-function fueling stations capable of dispensing hydrogen.

*Using the 2,027 LPG fueling stations (as of October 2018) nationwide

<Strategies for Installation of Hydrogen Fueling Stations >

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Deregulation on Hydrogen Fueling Systems

Relax restrictions, such as location limitation, separation distance, self-charging, etc.

*Completed: permit installation of dual-function and portable fueling stations, establish

requirements for liquid hydrogen fueling stations, allow installation of fueling stations at bus garages located in development-restricted areas, etc

< Deregulation on Hydrogen Fueling Systems >

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Until the related regulations are relaxed, the government plans to use the “regulated sandbox” of the Industrial Convergence Promotion Act to install hydrogen fueling stations in downtown areas and at public buildings (such as Government Complex Sejong).

Advance hydrogen fueling station technologies and improve safety

Reduce the cost of installing hydrogen fueling stations by developing large-scale hydrogen fueling technology, including technologies that enable fueling rates of one to two tons per day and liquid hydrogen fueling.

*10MM/kg in 2018 → 6MM/kg in 2022 → 3MM/kg in 2030

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Hydrogen ships, trains, drones, Etc.

1. Hydrogen ships: promote eco-friendly ships as promising means of transportation in the future

□(Necessity) In response to IMO environmental regulations, the development and demonstration of technologies has been carried out mainly in Europe by using hydrogen fuel cells as a power source for the propulsion systems of ships

□(Status of technology) Korea has been conducting technology

development and demonstrations since 2017.

* Develop and demonstrate PEMFC system for fine dust/emission-free ships (2017 to 2021, Korean Register of Shipping, KRW 6.3 billion).

Develop hydrogen fuel cell technology (large size, PEMFC) through technology partnerships between global electrical companies and fuel cell manufacturers.

*Siemens (Germany) and PowerCell (Sweden) have developed a fuel cell-based marine power generation system and obtained AIP from DNV GL (June 2018).

*ABB (Swiss-Sweden) and Ballard (Canada) started the joint development of 3MW marine fuel cells (June 2018).

□Direction of development: establish the direction of technology development by

separating the development of coastal ships (small and medium) and ocean-going ships (large) while simultaneously building relevant infrastructure.

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* The relevant technology will first be applied to government vessels and verified and then expanded to the private sector.

Ocean-going ships: modularize fuel cell stacks and develop integrated system by 2025 → secure performance and safety of MW-class fuel

cell system by 2027 → apply to large ships by 2030

*Application to large ships will be divided into auxiliary power and propulsion power depending on system capacity.

Infrastructure: bunkering infrastructure for hydrogen fuel cell ships, legal and institutional support, and grant funding for application to fuel cells on ships

2.Hydrogen trains: Creation of a Clean, Safe Railway Environment

□Necessity: To reduce greenhouse gas emissions, eco-friendly trains must be introduced in the subway system. In addition, energy-independent railway vehicles need to be put into operation to reduce the necessity for power infrastructure.

□Status of technology: R&D* on hydrogen trains started in April 2018, with commercialization being promoted through the verification of stability and

efficiency. As of yet, the supply plan has not been completed.

* Research period/expenses: April 2018 to December 2022 / KRW 26 billion (government: KRW 23 billion, private: KRW 3 billion)

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Overseas, hydrogen trains are in trial operation in Germany (and are expected to go into service in 2020).

* Also railroad manufacturers and fuel cell companies are working together on demonstration projects.

□ Development direction: replace diesel trains with hydrogen trains gradually and plan to operate hydrogen-powered railway vehicles (with technology development to be completed by 2022).

The replacement of existing diesel trains (4400 series, 59 cars) is expected to reduce annual carbon emissions by 30,000 tons, nitrogen oxide emissions by 486 tons, and fine dust by 89 tons.

The introduction of hydrogen trains on new routes (nine sites, 85.32km), in accordance with the light rail construction plan, is expected to reduce annual carbon emissions by 5,000 tons, compared to the existing feed method.

The introduction of hydrogen trains will reduce the cost of building and maintaining power infrastructure,* such as substations and electric cables for existing electric locomotives, and prevent accidents.**

*Power infrastructure construction costs: KRW 24.3 billion/km, with KRW 500 million/km in annual maintenance costs

**Railway electrocution incidents: 7 in 2014, 7 in 2015, and 4 in 2016

3.Hydrogen Drones: Long Distance, Long Flight Time, and Remote Flight Capability

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