Hydrogen Power Bidding Market to Launch in Second Half... 500 GWh Clean Hydrogen, 930 GWh General Hydrogen

The government has finalized this year's hydrogen power bidding market volume at 500 GWh (gigawatt-hours) for clean hydrogen power generation and 930 GWh for general hydrogen power generation, and will launch the market in the second half of the year. In line with the policy to phase out coal-fired power by 2040, coal-ammonia co-firing power generation will be excluded from support. The evaluation system will also be reorganized to encourage the expansion of clean hydrogen production based on water electrolysis.

The Ministry of Climate, Energy and Environment announced on June 8 that it will issue an administrative notice for the revision of the "Notice on the Calculation of Annual Purchase Volume for the Hydrogen Power Bidding Market, etc." until June 30.

Liquid Hydrogen Supply Infrastructure Construction Technology Development Project Demonstration Site Aerial View

The hydrogen power bidding market is a system for purchasing and supplying electricity produced using hydrogen or hydrogen compounds such as ammonia as fuel, and is divided into the general hydrogen power market and the clean hydrogen power market. Only power generation facilities that use certified fuels with greenhouse gas emissions of 4 kg CO2e (carbon dioxide equivalent) or less per 1 kg of hydrogen produced can participate in the clean hydrogen power market.

This year's bidding volume is set at 930 GWh for general hydrogen power generation and 500 GWh for clean hydrogen power generation. The targets are projects scheduled to begin commercial operation in 2028 for general hydrogen power and in 2029 for clean hydrogen power.

The government is expanding hydrogen power generation to secure carbon-free power sources that can complement the intermittency of renewable energy. In particular, with the spread of AI and the increasing number of data centers driving up electricity demand, the role of hydrogen power is expected to grow.

Accordingly, from this year, coal-ammonia co-firing power generation will be excluded from support in the clean hydrogen power market. Instead, the bidding evaluation system will be revised to expand clean hydrogen production based on water electrolysis, and the environmental evaluation criteria for the general hydrogen power market will also be strengthened.

The cumulative purchase volume in the hydrogen power bidding market for general hydrogen power is set to rise from 1,430 GWh in 2025 to 5,029 GWh in 2028, while clean hydrogen power will expand to 750 GWh each in 2027 and 2028, and to 1,250 GWh in 2029.

After gathering public feedback through the administrative notice process, the Ministry plans to finalize the revised notice and open the bidding market in the second half of this year.

This content was produced with the assistance of AI translation services.