South Korea Unveils $6 Billion Green Hydrogen Roadmap

South Korea Unveils $6 Billion Green Hydrogen Roadmap

The South Korean government released a comprehensive green hydrogen strategy on October 22, 2025, committing $6 billion in public investment through 2030. The plan targets domestic production of 300,000 tons of green hydrogen annually and the construction of 1.2 GW of electrolyzer capacity.

President Yoon Suk-yeol described hydrogen as "the cornerstone of South Korea's energy transition" at the announcement ceremony in Ulsan, the country's industrial hub.

Production Infrastructure

Three large-scale electrolysis facilities will be built in Ulsan, Incheon, and Buan, powered primarily by offshore wind. The Ulsan plant alone will house 400 MW of proton exchange membrane electrolyzers, making it one of the largest in Asia.

SK E&S, Hyundai Engineering, and POSCO Holdings have signed preliminary agreements to co-develop the facilities, with combined private investment expected to reach $8.5 billion.

Supply Chain and Import Strategy

Recognizing that domestic renewable energy cannot meet all hydrogen demand, the roadmap includes plans to import green hydrogen and ammonia from Australia, Oman, and Chile. The Korea National Oil Corporation will oversee the construction of ammonia import terminals at Yeosu and Ulsan ports.

"Korea's hydrogen economy will be a mix of domestic production and strategic imports," said Park Jin-ho, vice minister of trade, industry, and energy. "We expect a 60-40 split by 2030."

End-Use Applications

The strategy prioritizes hydrogen use in steelmaking, shipping fuel, and power generation. POSCO aims to replace 10% of its coal-based blast furnace capacity with hydrogen-based direct reduction by 2028, reducing annual emissions by 4.2 million tons of CO2.

Hyundai Motor Group will expand its hydrogen fuel cell vehicle lineup, targeting 100,000 units sold annually in the domestic market by 2030. The government plans to install 1,200 hydrogen refueling stations across the country.

Cost Projections

Current green hydrogen production costs in South Korea stand at approximately $5.50 per kilogram. The roadmap targets a reduction to $3.00 per kilogram by 2030, driven by electrolyzer cost declines and cheaper renewable electricity.

South Korea joins Japan and Australia in establishing dedicated hydrogen strategies, as the Asia-Pacific region emerges as a major arena for hydrogen technology competition.