[Hydrogen, the Broken Ladder] ⑤"South Korea is trapped in idealism...It needs to redesign a realistic path"

"A clean hydrogen goal, but no implementation strategy"
"A gradual, step-by-step transition through a transitional phase with a 'hydrogen supply mix'"
"Secure major demand sources, including data centers, to grow the market&

Editor's NoteThe hydrogen industry, long touted as a future growth engine for Korea, is faltering. The government has worked to build the hydrogen ecosystem, even enacting the world's first Hydrogen Act, but has failed to bridge the gap between its vision and reality, leaving the industry's foundations rapidly weakening. Small and midsize hydrogen technology companies that moved early to invest in research and development (R&D) and facilities in line with the government's plans are struggling to find a way forward as they face an existential crisis. The Asia Business Daily examines these realities through the voices of industry players and explores ways to move beyond the hydrogen era toward an era of clean hydrogen.

1. An Ecosystem Caught in a Vicious Cycle Before It Can Get Off the Ground

2. "We Invested Because We Trusted the Government"... The 'Valley of Death' Drags On

3. Korea's Clean Hydrogen Transition Policy Caught in a Dilemma

4. The Clean Hydrogen Transition Has Stages... Strategies of the U.S., China and Japan

5. "Korea Is Trapped in Idealism... It Needs to Redesign a Realistic Path"

"Korea's hydrogen policy has a goal of transitioning to clean hydrogen, but lacks a concrete implementation strategy."

Park Jinnam, president of the Korean Society for Hydrogen and New Energy (pictured), described the challenges facing Korea's hydrogen industry in an interview with The Asia Business Daily on October 12. His point was that there are not enough concrete measures to support a transition from the existing hydrogen system, centered on byproduct and reforming hydrogen, to one centered on clean hydrogen, which produces fewer carbon emissions. He stressed that Korea needs financial support aligned with its policy goals if it is to accelerate the transition to clean hydrogen in line with global trends.

Park said the 2021 "Basic Plan for the Implementation of the Hydrogen Economy" should first be revised to reflect current market conditions and technological capabilities. The industry's actual pace of growth has differed from what was expected at the time, making it necessary to reassess the goals and implementation methods. He urged the government to ensure the new plan goes beyond declarative goals and systematically lays out the scale and form of financial support, along with implementation measures for each stage, to make those goals a reality.

He also stressed that government support should extend beyond research and development (R&D) to include production, utilization and commercialization. Green hydrogen remains far less cost-competitive than conventional fossil fuels and byproduct or reforming hydrogen, making it difficult to leave the formation of an initial clean hydrogen market solely to the private sector. "The government should provide incentives for clean hydrogen production and use, and consider ways to establish a stable financial foundation that can support long-term investment in the hydrogen industry," Park said. In other words, the government's role should go beyond setting policy direction: it should also help bridge the price gap so companies can move forward with actual projects.

Park Jinnam, president of the Korean Society for Hydrogen and New Energy. Reporter Choi Hogyeong.

He stressed that because environmental imperatives alone are not enough to secure public acceptance, it is also important to design stages for the transition to clean hydrogen, alongside financial support. Given the practical challenges of switching to clean hydrogen in line with the government's decarbonization policy, he said Korea needs a transitional strategy like those adopted by Japan and other major countries.

That does not mean continuing to use existing types of hydrogen indefinitely. Park argued that Korea needs a "hydrogen supply mix" that maintains and expands existing markets, supply chains and infrastructure while appropriately combining gray, blue, pink and green hydrogen according to the timing and circumstances, gradually increasing the share of clean hydrogen. "Gray, blue, pink and green hydrogen should complement one another and move forward together, rather than compete," he said. "They should be combined in the optimal way for the conditions at any given time."

Securing stable sources of demand to strengthen the market foundation of the hydrogen industry is also important to support this transition. In this context, the hydrogen industry is eyeing large-scale megaprojects, including AI data centers, as potential new "major customers." With access to the power grid identified as a bottleneck in data center development, supplying electricity near demand centers using fuel cells and hydrogen turbines is also being discussed as an alternative. "The role of hydrogen will grow as renewable energy expands," an industry source said. "The three major megaprojects could become hydrogen's first major customers."

Park highlighted the role of water electrolysis facilities in supporting the power grid as renewable energy expands. Solar and wind power generation can vary significantly depending on the weather, and when output is high, electricity supply can exceed demand. At such times, surplus electricity can be used to run electrolyzers, which produce hydrogen by splitting water through electrolysis. Conversely, reducing electrolyzer operations when electricity supply is insufficient can help balance supply and demand. 

This approach uses electrolyzers not simply as hydrogen production facilities, but as a type of "flexible load" whose electricity consumption can be adjusted according to grid conditions. As the share of renewable energy rises, so does the variability the power grid must handle. Park said water electrolysis can connect renewable energy expansion with hydrogen production. "Nuclear power, renewable energy and hydrogen can be linked to offset one another's limitations," he said.

As demand for hydrogen and its applications expand, investment in hydrogen production facilities and storage and transportation infrastructure can also grow. Increased demand can drive investment, while higher production volumes and a larger market can create a virtuous cycle that lowers production costs. This is why it is essential to reconnect the "broken ladder": broadening the foundation of the existing hydrogen market to create the conditions for a gradual transition to clean hydrogen, and building on that foundation to reach the clean hydrogen era.

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