[기획] Korea Gas Corporation leads’Green New Deal’ with eco-friendly hydrogen business

Response to the Korean version of the Green New Deal Policy’Hydrogen Business Promotion Strategy’… Driving the hydrogen industry
Selected as a domestic hydrogen distribution agency… Takes a pivotal role in leading the hydrogen economy

[에너지데일리 조남준 기자] Korea Gas Corporation (CEO Hee-bong Chae) actively participates in the hydrogen industry and leads the’Korean version of the Green New Deal’ promoted by the government. As global warming and fine dust emerge as serious social problems, hydrogen, which has no possibility of depletion and does not emit pollutants, is drawing attention as a new energy source to replace existing fossil fuels. Therefore, the hydrogen industry is emerging as an axis of the’Korean version of the Green New Deal’ policy. KOGAS plans to respond to the’Korean version of the Green New Deal’ policy through aggressive investments to vitalize the hydrogen industry.

President of Korea Gas Corporation Hee-bong Chae

■ Spurring global hydrogen industry development…Gas Corporation plays a role as a guide to fostering Korea’s hydrogen industry

Developed countries are already speeding up the popularization of hydrogen vehicles and construction of hydrogen infrastructure.

Korea is no exception. Korea, which is a poor country of fossil fuel resources, is unlikely to be depleted, and hydrogen energy, a universal energy source without regional concentration, is seen as an opportunity to leap into an energy-independent country. It is a strategy to increase

For this reason, the government selected the hydrogen economy as one of the three strategic investment sectors, and in January 2019, announced the’Road Map for Activation of the Hydrogen Economy’, which signaled the promotion of the hydrogen industry. The’Management Act (Hydrogen Act)’ was established to lay the legal foundation for fostering the hydrogen industry.

In line with this, Korea Gas Corporation has set up a plan to lead the hydrogen industry through its infrastructure and know-how as the nation’s leading comprehensive gas company.

The natural gas reforming method, which produces hydrogen by decomposing natural gas into steam at high temperature and high pressure, is the most realistic method in the early hydrogen economy era, and because it has similar properties to natural gas, the know-how in the construction and operation of natural gas infrastructure for the past 37 years. Gas corporations who have acquired the GAS can demonstrate their optimal expertise in building a hydrogen economy.

In addition, KOGAS has gas pipelines (4931km) connected nationwide and supply management offices (412 locations) located at bases across the country, which is advantageous for initial hydrogen infrastructure construction.

This was the basis for this reason that KOGAS was evaluated as having strengths in the distribution sector, such as establishing a distribution system for hydrogen, maintaining hydrogen trading and hydrogen prices, and collecting information on facilities used such as charging stations.

There is also a valid opinion from the industry that public institutions should take the lead in investing and serve as a pick-up service to revitalize project participation.

Accordingly, KOGAS announced its’hydrogen business promotion strategy’ in April of last year to fulfill its role as a welcome agent in making Korea a leading country in the hydrogen industry.

It revealed its vision to actively participate in the whole process of the hydrogen industry, including hydrogen production, supply, distribution, and technology development, and passed a law amendment to include the hydrogen business in the scope of the project, and completed the revision of the articles of association.

President Chae Hee-bong of the Korea Gas Corporation announced a paradigm shift from a fossil fuel-based resource development company to a hydrogen-based eco-friendly new energy company through a commemorative address for the 37th anniversary of the foundation.

■’The 2nd Declaration of Entrepreneurship’ Announcement of Conversion to a New Energy Company

On August 18, last year, CEO Chae Hee-bong of Korea Gas Corporation announced a paradigm shift from a fossil fuel-based resource development company to a hydrogen-based eco-friendly new energy company through a speech commemorating the 37th anniversary.

KOGAS plans to expand its preemptive investment in the hydrogen business and secure the original technology to lead the market by producing and introducing inexpensive hydrogen through the introduction of overseas hydrogen after 2030.

In addition, KOGAS plans to announce its own Green New Deal Vision, and foreshadowed the transition from a wholesale business-oriented B2B company to a B2C company that satisfies the needs of eco-friendly consumers.

■ Leading the market as a leading company in the hydrogen industry

The Hydrogen Economy Committee, chaired by Prime Minister Jeong Sye-gyun as the chairman of the government-level hydrogen economy control tower, held the second meeting on October 15 last year, focusing on hydrogen manufacturing businesses to supply hydrogen economically. The natural gas supply system was improved.

Natural gas for hydrogen production, which was only available to existing city gas companies, was allowed to be directly supplied to hydrogen production facilities. In addition, the gas corporation’s individual rate system, which was limited to power generation, was applied to the natural gas so that it could be supplied inexpensively.

In addition, the introduction of the mandatory hydrogen power generation system has fostered the fuel cell market for power generation and increased the demand for hydrogen, leading to early activation of the hydrogen economy.

Through the improvement of the natural gas supply system for hydrogen production and the mandatory hydrogen power generation system, KOGAS has solidified its status as a leading hydrogen company.

At the Hydrogen Economy Committee held on July 1 of last year, Chairman Jeong Sye-gyun revealed that the Korea Gas Corporation was finally confirmed as an agency in charge of distribution of the hydrogen industry suggested by the Selection and Evaluation Committee.  On this day, the Hydrogen Economy Committee finalized the Korea Gas Safety Corporation as an agency in charge of promoting the hydrogen industry with the Hydrogen Convergence Alliance Promotion Team and an agency in charge of hydrogen industry safety.
At the Hydrogen Economy Committee held on July 1 of last year, Chairman Jeong Sye-gyun revealed that the Korea Gas Corporation was finally confirmed as an agency in charge of distribution of the hydrogen industry suggested by the Selection and Evaluation Committee. On this day, the Hydrogen Economy Committee finalized the Korea Gas Safety Corporation as an agency in charge of promoting the hydrogen industry with the Hydrogen Convergence Alliance Promotion Team and an agency in charge of hydrogen industry safety.

Selected as a leading domestic hydrogen lighter’Hydrogen Distribution Agency’

The Korea Gas Corporation was selected as a’hydrogen distribution agency’ in the competition for hydrogen exclusive agencies conducted by the Ministry of Trade, Industry and Energy to lead the hydrogen economy, and played a pivotal role in the future hydrogen economy.

In accordance with Article 34 of the’Hydrogen Economy Promotion and Hydrogen Safety Act’, KOGAS establishes a hydrogen distribution system, maintains hydrogen trading and proper price, manages the supply and demand of hydrogen, inspects and provides guidance to establish distribution order, and collects information on hydrogen charging stations. It plans to implement the business throughout the distribution of hydrogen, such as and provision.

In addition, President Chae Hee-bong of the Korea Gas Corporation was appointed as an expert member of the Hydrogen Economy Committee to participate in the government-wide hydrogen economy control tower business.

■Emphasis on hydrogen production and distribution to revitalize the hydrogen economy

In preparation for an increase in demand for hydrogen, KOGAS builds a production base to make extracted hydrogen in the short term, and in the long term, it is a project to introduce hydrogen from overseas along with the expansion of hydroelectric hydrogen to reduce greenhouse gases and secure economic efficiency. It will focus on promoting.

First, by 2030, it is planning to secure supply capacity to supply large-scale hydrogen by establishing a base-type hydrogen production base and a fusion/complex charging station for supply to large cities. Already, KOGAS is constructing base-type production bases in Changwon and Gwangju metropolitan areas with the goal of production in 2023.

In addition, it plans to reduce the production cost of hydrogen by increasing the size of the production base and efficient operation of natural gas infrastructure, and to secure fuel price competitiveness at the level of diesel by improving distribution efficiency.

Finally, in order to expand the supply of eco-friendly hydrogen, we will secure large-scale water electrolysis technology in stages by 2030 and promote commercialization.

The goal of KOGAS is to produce and supply CO2 free hydrogen that does not emit carbon dioxide by introducing hydrogen produced abroad to build and supply a green hydrogen supply chain.

■ Resilience to foster the hydrogen industry in cooperation with leading institutions in the hydrogen economy

Korea Gas Corporation signed a business agreement with Hyundai Motor Company to secure competitiveness in hydrogen business and expand sustainable hydrogen infrastructure.

With this agreement, KOGAS and Hyundai Motor Group decided to discover projects across the entire hydrogen infrastructure in line with government policies.

As part of a joint project, the two companies plan to establish a joint corporation to build and operate a convergence charging station, and actively respond to the demand for charging infrastructure necessary to expand the supply of commercial hydrogen electric vehicles such as hydrogen electric buses.

In particular, the convergence charging station is a charging station that includes a variety of functions such as hydrogen production, charging, sales, and fuel cell power generation.It extracts hydrogen directly from LNG to significantly lower the sales cost, and additionally produced hydrogen is added to external sales and fuel cell power generation. It is expected to be able to significantly improve economic feasibility, such as generating profits.

In addition, it will be possible to charge hydrogen vehicles, LNG vehicles, and electric vehicles at the convergence charging station.

In addition to charging stations, the two companies will cooperate with overseas hydrogen introduction, liquefied hydrogen production and charging infrastructure technology to utilize it, CO2 capture and reduction utilization, and eco-friendly hydrogen production technology as a joint project related to hydrogen.

In addition, from last year, KOGAS took the lead in establishing “Hynet,” a special purpose corporation for installation and operation of hydrogen charging stations, in which 13 hydrogen-related companies participate, and the corporation was launched in March 2019.

KOGAS plans to do its best to build a hydrogen charging infrastructure with the goal of building 100 hydrogen charging stations through’Hynet’ by 2022.

■ Establishing the leading infrastructure to achieve a hydrogen economy society

Hydrogen production and supply are key in a hydrogen economy. The KOGAS established a policy to induce manufacturing cost reduction by establishing a hydrogen production facility.

To this end, the’Gimhae Manufacturing Hydrogen Charging Station’, which produces hydrogen directly on-site, is under construction with the goal of commercialization from next year on the site of the Busan-Gyeongnam Regional Headquarters of the Gas Corporation. Construction is scheduled to begin.

In addition, Gwangju Metropolitan City and Changwon City will be selected as target areas for the base-type hydrogen production base construction project, and hydrogen extraction facilities and shipping facilities will be built to produce hydrogen from December 2022.

In particular, with the Gwangju Metropolitan City, a “business agreement to promote the establishment of a base-type hydrogen production base project” was recently signed, laying the foundation for revitalizing the hydrogen economy in the Honam region.

Korea Gas Corporation will also install a hydrogen-LNG complex charging station on the highway. Together with Korea Road Corporation, KOGAS will install complex charging stations that can simultaneously charge hydrogen and LNG at three highway rest areas, and plans to install 30 additional hydrogen and LNG complex charging stations at major distribution centers nationwide by 2025.

Gas Corporation is aggressively pursuing infrastructure projects, such as establishing a hydrogen research center with Daegu City and the’KR&D Campus’ project.

In addition, it is establishing the image of a public institution that leads the hydrogen industry by promoting a project to introduce 4,931km of pipe patrol vehicles across the country as hydrogen vehicles.

■ Hydrogen industry activation technology development and hydrogen safety efforts

It is planning to achieve technology independence in the entire value chain by raising the technology level, which is currently in its infancy. In particular, it plans to systematically implement a technological development roadmap for each stage in all areas such as localization of natural gas reforming technology, carbon capture and resource technology development, and water electrolysis technology research.

KOGAS is also actively promoting efforts for hydrogen safety under the judgment that’safety’ is the core luck of the hydrogen economy. This is because if safety is not guaranteed, the momentum to promote it through national policy is lost.

KOGAS plans to build a full-cycle safety management system such as hydrogen production, storage, and transportation, contributing to the creation of laws and institutional devices for safety management so that hydrogen can be safely used, and based on 37 years of safe operation of natural gas. .

In addition, it is a policy to improve awareness of hydrogen and relieve public anxiety by actively communicating with local residents through pilot projects.

Korea Gas Corporation President Hee-Bong Chae said, “We will carry out the hydrogen business roadmap of KOGAS smoothly so that our country can lead the era of low-carbon, eco-friendly hydrogen energy in the future.” He said, “We plan to lead the transformation of eco-friendly energy centered on hydrogen energy by actively participating in the entire process and systematic safety management of the hydrogen industry, including hydrogen production, supply, distribution, and technology development.”

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