[월간수소경제 성재경 기자] At the plenary session of the National Assembly, on December 2 of last year, the budget for 2021 was finally passed. It recorded 558 trillion won, the largest ever, as the disaster subsidies and damage support budgets related to Corona 19 were reflected. In this’super budget plan’, the main thing to look out for is the hydrogen business-related budget that corresponds to the Green New Deal.
Budget is the barometer of policy. The ‘2050 Declaration of Carbon Neutrality’ is now an irreversible reality. The government is putting a strong commitment to early implementation of the hydrogen economy. As if conscious of the fact that the budget was concentrated in the hydrogen utilization sector, the production budget was increased, such as the hydrogen production base and green hydrogen production. In addition, financial resources have been newly organized to supply hydrogen electric vehicles and expand the construction of hydrogen charging stations.
2021 Hydrogen Budget: Ministry of Trade, Industry and Energy
This year’s budget by the Ministry of Industry was confirmed to be 11,186 billion won, an 18% increase from last year’s 9.43 trillion won. The original government proposal of 11,159.2 billion won increased by 26.8 billion won after the National Assembly deliberation. This reflects the government’s stance that an active role of finance is needed to overcome the corona crisis and create future growth engines.
Of these, the hydrogen-related budget is 25.74 billion won, an increase of 982 billion won from 159.2 billion won last year. Following last year, more than 81.6 billion won, the largest budget, is being spent on the’new and renewable energy core technology development project’ that deals with hydrogen and fuel cells. In addition, the development of next-generation fuel cell system technology for hydrogen vehicles (6 billion won), hydrogen truck remodeling technology development and demonstration (8.4 billion won), and localization technology development of hydrogen truck electric power parts (5.4 billion won) are notable.
The project that has more than doubled from the previous year in the Ministry of Industry’s budget is the’hydrogen production base construction project’. The budget for the construction of a hydrogen production base, which initially applied for 56.6 billion won, is 66.6 billion won, an additional 10 billion won. This reflects the budget of 45 billion won for the construction of a small-scale hydrogen production base, 15.2 billion won for the base-type medium-large-scale hydrogen production base (3.6 billion won added during the deliberation process), and 6.4 billion won for the newly established subsidy budget for the establishment of a hydrogen shipping center. have. Hinet’s by-product hydrogen shipment center in Dangjin, Chungnam, which can supply 2,000 tons of hydrogen per year, is about to be completed in March this year.
The budget for the’Green Hydrogen Production and Storage System Technology Development Project’, which was initially allocated about 7 billion won, has increased by 3 billion won to 10 billion won. A budget of 5.8 billion won for the development of P2G (Power to Gas) technology that converts power to hydrogen to store the power of renewable energy for a long time was also passed according to the government’s proposal. Green hydrogen is a method of producing electricity by generating electricity using renewable energy such as solar or wind power, and electrolyzing water with this electricity. No carbon dioxide is emitted during this process.
As a new task by the Ministry of Industry this year, the development of a hydrogen fuel cell cargo drone technology that has increased the loading weight to 200 kg is remarkable. It costs close to 5.8 billion won. Looking at the development of hydrogen drones so far, the focus has been on increasing flight time by using hydrogen fuel (for reference, the maximum payload of the DS30, a hydrogen drone developed by Doosan Mobility Innovation, is only 5kg). The civil-military hydrogen drone technology capable of carrying a load of 100 to 200 kg can be applied to urban air mobility (UAM) that carries people in the future.
A new budget of 3.3 billion won for the demonstration of hydrogen electric trams, which is drawing attention as a next-generation public transportation method, has also been added. The hydrogen tram has the ability to purify the air in the process of operating the hydrogen fuel cell, so the effect of purifying the air in the city can be expected, and the hydrogen charging station can be operated stably because it runs through a specified section. Hyundai Rotem is also working on the hydrogen extractor business along with the development of the hydrogen tram.
Hyundai Rotem will demonstrate a hydrogen electric tram in Ulsan, designated as a special zone for free regulation of hydrogen green mobility. In November of last year, a memorandum of understanding was exchanged with the Korea Railroad Research Institute for technology development and commercialization of hydrogen electric trains. In addition to this, the Ministry of Land, Infrastructure and Transport also secured 300 million won for the research and development of liquid hydrogen trains this year.
It is also worth paying attention to the’hydrogen distribution infrastructure construction project’. This includes support for renting hydrogen tube trailers for hydrogen distribution operators, building a hydrogen exchange, and operating a hydrogen distribution monitoring center. As a project to activate hydrogen distribution, a budget of 3,596 billion won was set this year.
First, the budget for the hydrogen exchange is 80 million won. The government plans to establish and operate a hydrogen exchange next year. Prior to establishing an integrated transaction platform, joint purchases will be conducted in the form of a pilot project this year. When a demand survey was conducted on a total of 139 charging stations last year, more than half of the charging stations expressed their intention to participate in joint purchase.
The rental support for hydrogen tube trailers seems to be a measure to expand the charging infrastructure. For three years until 2023, the Korea Gas Corporation subsidized half the purchase cost of 176 tube trailers, which was decided to be purchased for rental, and for the first time this year, 16 billion won (the price per tube trailer is about 200 million won). ). The Ministry of Industry plans to lease tube trailers at low interest at charging stations with poor economics, and the rental cost is determined by purchase cost, useful life, and procurement interest. When 15 years of useful life is applied, it is expected to be about 630,000 won (1 month) per unit.
The Hydrogen Distribution Monitoring Center is a place that conducts monitoring, inspection, guidance, and public relations work to establish a fair distribution order of hydrogen. It is based on the hydrogen law in effect in February of this year, and illegal activities are monitored through hydrogen quantitative inspection and operation of a reporting desk. The hydrogen distribution monitoring center’s budget is 400 million won for dedicated personnel, 400 million won for inspection equipment, and 16 million won for management expenses.
There is also a hydrogen fuel cell certification center with a budget of 1 billion won. It is a facility that goes into the East Sea Regional Headquarters, and is currently temporarily occupied in Pohang Techno Park. When the head office of the Pan-Dong Sea Regional Headquarters is established in the newly established Pohang Convergence Technology Industrial District in Heunghae-eup, Pohang, it will move in there.
2021 Hydrogen Budget: Ministry of Environment
The Ministry of Environment’s budget and fund size is 11,171.5 billion won, an increase of 17.1% from last year’s 9,539.3 billion won. During the parliamentary deliberation process, about 93.8 billion won was increased compared to the government proposal. The Ministry of Environment will fully implement the Green New Deal projects such as supplying future cars, creating a smart green city, and fostering green industries, and will focus its financial capabilities on carbon neutrality in response to climate and environmental crises and strengthening the environmental safety net.
The Ministry of Environment is in charge of the hydrogen electric vehicle supply business. As a project to support purchase subsidies and charging infrastructure installation costs for the promotion of the supply of hydrogen electric vehicles, this year’s budget is 440 billion, an increase of KRW 122.4 billion (38.5%) from KRW 3176 billion for the fourth additional renovation last year. 10,000 won was organized. In addition, the fuel cost support budget for hydrogen charging stations was added to 1.47 billion won, resulting in a total budget of 441.5 billion won.
The supply of hydrogen electric vehicles is part of the core business of the Korean version of the Green New Deal. According to the government’s goal, the number of hydrogen cars will be supplied by 67,000 by 2022 and 200,000 by 2025, and the number of hydrogen charging stations will be increased to 310 by 2022 and 450 by 2025. The government calculated the supply of 15,000 hydrogen cars and 180 hydrogen buses, taking into account the annual supply plan of hydrogen cars and hydrogen buses, the demand status of local governments, and the annual production plan of hydrogen car manufacturers. A pilot project for distribution (5 units) was newly organized.
In addition, in order to speed up the hydrogen charging station construction project, which is disrupting construction due to local residents’ complaints, delays in various licenses, and land securing problems, the number of general charging stations has been adjusted (27 in 2020 → 25 in 2021). In order to expand the supply of commercial hydrogen vehicles such as buses, the number of special charging stations (3rd additional 9 locations in 2020 → 21 locations in 2021) has been significantly increased.
It is also noteworthy that the budget for the charger expansion support project (6 billion won) has been newly established for 8 existing charging stations in order to solve the difficulties associated with the establishment of hydrogen charging stations and secure economic feasibility.
The Ministry of Environment adjusted the project cost, which had been organized in the previous one-year budget, to two years, taking into account the current situation, which normally takes about 18 months to build a single hydrogen charging station. Only the design cost was reflected in the budget for the first year of the new project, and the project cost was adjusted by extending the project period depending on whether or not a charging station site was secured.
For example, in the case of a new construction of a hydrogen charging station, 10% of the total project cost (3 billion KRW for general charging stations and 6 billion KRW for special charging stations), or KRW 300 million and KRW 600 million, were reflected, and a private business operator promoted the establishment of a new hydrogen charging station. In the case of this, it was changed to support 50% of the total project cost, 1.5 billion won and 3 billion won.
The’mega station hydrogen charging station project’ is a little different from the hydrogen transportation complex project, which the Ministry of Land, Infrastructure and Transport decided to build for the first time in Pyeongtaek. The mega station is built in a thin form with an exhibition and experience hall attached to a hydrogen charging station. The Ministry of Environment newly organized 2.25 billion won for this project. In addition, 250 million won was allocated to the’hydrogen charging station CO2 recovery pilot project’ targeting on-site hydrogen charging stations that produce hydrogen by reforming natural gas.
The biggest obstacle to the supply of hydrogen electric vehicles is the hydrogen charging infrastructure. In Seoul alone, it is difficult to find a site that satisfies the standards for apartments, such as apartments, railroad boundaries, and distance from kindergarten or school boundaries. There is intense opposition from local residents who recognized hydrogen charging stations as hateful facilities, and the schedule for the hydrogen bus supply project has been significantly delayed as four stations will be operated in the first half of this year even if only the construction of special (bus) charging stations is carried out.
The government is well aware of these issues. In August of last year, the Ministry of Environment started to operate the’Future Vehicle Charging Station Field Support Team’, and three months later, the’Training Unit for Hydrogen Charging Stations (TF)’ attended by director-level members of each department was launched, making special efforts to build the charging infrastructure I am writing. In addition, in December of last year, Vice Prime Minister Hong Nam-ki and Minister of Strategy and Finance held the first innovation growth BIG3 (future car, biohealth, system semiconductor) promotion meeting, which expressed a strong commitment to build 110 hydrogen charging stations by the first half of this year. There is a bar.
The government is planning to discover more than 200 sites that can be installed in hydrogen charging stations such as gas stations and LPG charging stations, including idle sites owned by public institutions and state-owned lands nationwide. In addition, the budget to support hydrogen fuel purchase costs of about KRW 90 million was newly reflected in hydrogen charging stations suffering from operational deficits.
2021 Hydrogen Budget: Ministry of Land, Infrastructure and Transport
The Ministry of Land, Infrastructure and Transport, like the Ministry of Environment, conducts a hydrogen charging station construction project. The Ministry of Land, Infrastructure and Transport is in charge of establishing hydrogen charging stations at highway rest areas and major transportation points. This year’s budget is 16.25 billion won, an increase of 3.25 billion won compared to the previous year.
There are a total of 60 highway charging stations to be built by the Ministry of Land, Infrastructure and Transport, and the target volume to be built through government funding is 39. For the rest, Korea Expressway Corporation and Hyundai Motors decided to build 8 units and the service station operator 13 units.
The Ministry of Land, Infrastructure and Transport was initially planning to carry out the project to build a hydrogen charging station for four years from 2019 to 2022, but it has advanced the plan by one year to revitalize the hydrogen economy. By 2021, 13 hydrogen charging stations will be built every year for three years. Compared to the Ministry of Environment, which subsidizes KRW 1.5 billion per unit, it was difficult to induce active participation of private businesses due to the low government investment ratio. As a result, a total budget of 16.25 billion won was created, an increase of 250 million won compared to last year, to 1.25 billion won per charging station.
The next business to look out for is the’hydrogen logistics system construction project’. As a pilot project for hydrogen trucks to be promoted from this year, the Ministry of Environment and Ministry of Industry will also participate. The Ministry of Environment provides subsidies for the purchase of five large hydride trucks, and the Ministry of Industry supports development and demonstration to improve the performance of hydride trucks. CJ Logistics, Hyundai Glovis, and Coupang are participating as logistics companies, and Hyundai Motors supports the development and launch of hydrogen trucks and vehicle maintenance.
The Ministry of Land, Infrastructure and Transport also organized a total of 2.5 billion won for the’Hydrogen Electric Vehicle Safety Inspection Center’ project to be built in Ulsan. This includes 2.42 billion won for land purchase and 76 million won for design. After securing the site this year and completing the design service for the inspection station, it will be completed next year and officially opened in 2023.
Lastly, it’s time to look into the budget for the hydrogen project of the Ministry of Science, ICT and ICT. The Ministry of Science and Technology’s budget is largely divided into hydrogen energy innovation technology development and future hydrogen source technology development. In the hydrogen energy innovation technology development project, KRW 14.1 billion was organized, an increase of KRW 2.33 billion compared to last year. The project is divided into three categories: next-generation hydrogen innovation technology, future hydrogen innovation technology development, and hydrogen international cooperation network operation.
The next-generation hydrogen innovation technology will support the development of core technologies in the field of low-temperature water electrolysis hydrogen production and future hydrogen storage, which are expected to be commercially available after 2030. Future hydrogen innovation technology supports the discovery of new technologies for low-energy, high-efficiency hydrogen storage and hydrogen production that can reduce carbon-free and CO2 through a free competition method based on the ideas of researchers. The operation of the hydrogen international cooperation network contains the contents of support to reinforce the research base and lay the foundation for joint research by establishing domestic and foreign hydrogen technology networks.
The future hydrogen source technology development project is an R&D project that supports the development of leading technologies in the field of hydrogen production and storage, with a budget of 3.3 billion won. From this year to 2026, it plans to invest KRW 25.3 billion for six years to support around 300 million KRW per project per year for the four areas of high-temperature water electrolysis, photolysis, pyrolysis, and physical adsorption storage.
This year, we will provide 2.4 billion won for 16 projects in the future-leading hydrogen production field, and 900 million won for six projects in the future-leading hydrogen storage field. This is also related to the’Green Hydrogen Production and Storage System Technology Development Project’ of the Ministry of Industry.