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| A worker fuels vehicle at a hydrogen fueling station at Seoul City Hall's annex building near Seosomun in this October 2022 file photo. Newsis |
By Park Jae-hyuk
President Yoon Suk Yeol's latest visit to the UAE has given a certain amount of momentum once again for Korea's transition to a hydrogen economy, dispelling worries that his administration may hit the brakes on the previous government's major energy policy, according to industry officials, Tuesday.
In a joint statement announced on Monday following Yoon's summit with UAE President Mohamed bin Zayed Al Nahyan, both leaders vowed to prioritize strengthening their ties concerning the production and utilization of hydrogen.
"Both leaders concurred on the importance of bilateral cooperation to accelerate and invest in projects of energy security, decarburization and climate action, and to continue developing both the UAE and the Republic of Korea as global leaders in hydrogen ecosystems," the statement reads.
The Ministry of Land, Infrastructure and Transport also emphasized that the two countries are strengthening their cooperation in the hydrogen sector, seeking to transition to a hydrogen economy for carbon neutrality.
Land Minister Won Hee-ryong told his UAE counterpart, Falah Al Ahbabi, chairman of Abu Dhabi's department of municipalities and transport, on Monday that the Middle Eastern country needs to give approvals as soon as possible for the project to develop hydrogen fueling station technologies suited for the desert climate.
Securities analysts anticipated that the government's interest in the hydrogen industry will benefit fuel cell producers, which have been underestimated compared to companies engaged in the defense and nuclear energy industries.
"The markets for defense systems and small modular reactors, as well as the hydrogen industry, will likely grow further in the Middle East," Hyundai Motor Securities analyst Kwak Min-jung said.
Since Yoon was elected last March, his government had been expected to adjust the hydrogen economy roadmap announced by his predecessor in 2019.
The expectation was attributed partially to the Ministry of Environment's decision last May to cut the budget for the supply of hydrogen fuel cell vehicles to 667.7 billion won ($540 million) from 892.7 billion won. This decision caused concerns at that time that Hyundai Motor Group may face difficulties in selling passenger cars powered by hydrogen, such as the Nexo.
Last August, business tycoons were also absent from the H2 MEET, the world's largest hydrogen exhibition, which the year before had attracted the chairmen of SK, Hyundai Motor and Lotte, as well as the heirs of Hanwha, GS, HD Hyundai and Kolon.
As concerns have grown over the loss of momentum to the nation's transition to a hydrogen economy, the government has continuously denied speculation about the administration's disinterest in the hydrogen industry.
Last November, the fifth meeting of the Hydrogen Economy Commission was held to discuss ways to create large-scale demand for hydrogen in the power generation and transportation industries, establish infrastructure to promote the use of hydrogen and make Korea a hydrogen industry powerhouse.
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